Written by Gary
Markets opened up fractionally on moderate volume as a spate of companies beat lowered expectations, helping to ease fears of a disappointing earnings quarter, but immediately began to head south.
Oil has remained steady with the U.S. Dollar trying to climb on continuing moderate volume. Anything could happen in today’s session and here is what we think is going to happen.
Here is the current market situation from CNN Money
North and South American markets are mixed today. The IPC is up 0.31% while the S&P 500 gains 0.12%. The Bovespa is off 0.36%.
As reported yesterday, the markets were higher, but investor participation was extremely low and it really appeared the markets were headed for a fall in the next session or two and that is where we think the markets are going to go.
Traders Corner – Health of the Market
|Investors.com Members Sentiment:||% Bullish (the balance is Bearish)||58%|
|CNN’s Fear & Greed Index||Above 50 = greed, below 50 = fear||50|
|Investors Intelligence sets the breath||Above 50 bullish||52.3%|
|StockChart.com Overbought / Oversold Index ($NYMO)||anything below -30 / -40 is a concern of going deeper. Oversold conditions on the NYSE McClellan Oscillator usually bounce back at anything over -50 and reverse after reaching +40 oversold.||-0.09|
|StockChart.com NYSE % of stocks above 200 DMA Index ($NYA200R)||$NYA200R chart below is the percentage of stocks above the 200 DMA and is always a good statistic to follow. It can depict a trend of declining equities which is always troubling, especially when it drops below 60% – 55%. Dropping below 40%-35% signals serious continuing weakness and falling averages.||62.55%|
|StockChart.com NYSE Bullish Percent Index ($BPNYA)||Next stop down is ~57, then ~44, below that is where we will most likely see the markets crash.||67.78%|
|StockChart.com S&P 500 Bullish Percent Index ($BPSPX)||In support zone and rising. ~62, ~57, ~45 at which the markets are in a full-blown correction.||74.80%|
|StockChart.com 10 Year Treasury Note Yield Index ($TNX)||ten year note index value||19.11|
|StockChart.com Consumer Discretionary ETF (XLY)||As long as the consumer discretionary holds above [66.88], all things being equal, it is a good sign for stocks and the U.S. economy||75.99|
|StockChart.com NYSE Composite (Liquidity) Index ($NYA)||Markets move inverse to institutional selling and this NYA Index is followed by Institutional Investors||11,127|
What Is Moving the Markets
|Here are the headlines moving the markets.|
from the American Chemistry Council
The Chemical Activity Barometer (CAB), was up 0.1 percent in April, as measured on a three-month moving average (3MMA). Reaching an index of 98.1, last seen in January 2008, the CAB remains up 2.6 percent over a year ago, and suggests gains in business activity will continue into the fourth quarter.
Read more …
The meeting will come amid speculation about a possible multibillion-dollar gas pipeline deal between Athens and Moscow, which could provide Greece with the cash it needs.
WASHINGTON (Reuters) – Euro zone finance ministers will not be setting any deadlines for Greece because they lead to brinkmanship in negotiations on what reforms Athens needs to do in exchange for more funding, a senior euro zone official said on Tuesday.
TEL AVIV/NEW YORK (Reuters) – Generic drugmaker Teva Pharmaceutical Industries Ltd. on Tuesday proposed buying smaller rival Mylan for $40 billion, saying it was a better deal than Mylan’s alternate offer to buy Perrigo Co.
PARIS (Reuters) – Proxy advisory firms are threatening to block key financial resolutions at French aerospace group Safran , opening a second front in a battle between the French government and institutional investors over a new corporate law.
(Reuters) – U.S. stock opened higher on Tuesday as a spate of companies beat lowered expectations, helping to ease fears of a disappointing earnings quarter.
VIENNA (Reuters) – European Commission President Jean-Claude Juncker urged Greece on Tuesday to step up efforts to strike a deal with its international creditors, warning that talks had not reached a stage at which they could come to a quick positive end.
TORONTO (Reuters) – BlackBerry Ltd said on Tuesday it is acquiring privately-held U.S. tech company WatchDox, which makes software that secures files, in a bid to further bolster its security credentials.
Submitted by Daniel Drew via Dark-Bid.com,
If you’re so smart, why aren’t you rich? One day, as ignorance becomes an ideal to strive for, that question might be replaced with, “If you’re so dumb, why aren’t you rich?”
The possibility that evolution might take a wrong turn and transform us into a society of imbeciles was dramatized in the movie Idiocracy. That process is beginning today as education is no longer rewarded. A look at the labor force participation rate for college graduates shows a steady decline since the data was first tracked.
Getting a college degree used to mean a ticket on the upward trajectory of this thing they once called a “career.” Now, your college degree guarantees you a place behind the bar counter in the McJob recovery.
As more college graduates become unemployed, the more the federal government picks up the tab.
FRANKFURT (Reuters) – Germany’s banks ought to focus on improving cost management as they revise their branch networks to catch up with the profitability enjoyed by international rivals, Bundesbank board member Andreas Dombret told a German magazine.
Deposed former Egyptian President Mohammed Morsi was sentenced to 20 years in prison today in connection with a crackdown on protesters during demonstrations against his rule in late 2012. Morsi, whose Muslim Brotherhood has been branded as a terrorist organization by now-President Abdel Fattah al-Sisi, assumed the Presidency in 2012 after Hosni Mubarak was toppled a year earlier during the Arab Spring. Morsi would himself become the target of mass protests after issuing a decree granting himself special powers â€” the unrest would ultimately end in the military assuming power in July of 2013 in an infamous (maybe)-coup.
Here’s Al Jazeera:
And a bit more from BBC:
Mario Draghi said this week that the transmission channels for European Q€ were opening up and crowed how well his cunning plan was working (by well we assume he means stocks are up). Today we get the ultimate test of that ‘transmission’ as 3-Month EURIBOR fell below 0.00% for the first time ever (likely wreaking havoc on European derivative pricing models). In English that means banks are being paid to borrow from one another in the interbank money-markets (which sounds a lot like a ‘glut’ of excess cash) seemingly confirming ICMA’s de Vidts fears: “We are scared about the [repo] market freezing,” as the ECB is “driving without headlights in the dark.” Of course this is yet another disturbing distortion on the heels of homeowners being paid to take out mortgages…
Banks now paid to borrow from one another…
As fears of the repo market in Europe freezing appear to be confirmed… (via Reuters),
Following “Soft” Capital Controls, ECB Threatens Greece With ELA Cut Even As 1 Million Workers Go Unpaid For Months
Things for insolvent, cashless Greece are – not unexpectedly – getting worse by the day.
Following yesterday’s shocking decree that the government will confiscate local government reserves and “sweep” them into the central bank to provide the country more funds as it approaches another month of heavy IMF repayments, earlier today Bloomberg reported that the ECB would add insult to injury and may increase haircuts for Greek banks accessing Emergency Liquidity Assistance, thus “reining in” the very critical emergency liquidity which has kept Greek banks operating in recent weeks as the bank run sweeping the domestic banking sector has gotten worse by the day.
According to Bloomberg, the ECB staff proposal lays out three options to reduce central-bank risk: “the scenarios envisage returning haircuts to the level before late last year, when the ECB eased its collateral requirements for Greece; to set them at 75 percent; or to set them at 90 percent. The latter two options could be applied …
Written by Steven Hansen
The West Coast Ports labor dispute is over, and appears the backlog has been eliminated causing a spike in exports. However, not only is year-to-date volumes contracting for both imports and exports – but March exports are contracting month-over-month and year-over-year. This is indicating weak economic conditions domestically and globally.
The program, which records information on letters and packages sent to suspects, lacks oversight, a report by a national defense lawyers’ group said.
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