Written by Gary
U.S. markets opened higher after Chinese Markets rose over 5% and the hope of a debt resolution in Greece has stimulated investors. However, the averages have been melting down since the opening, although still in the green the prospect of the major indexes closing flat is a distinct possibility.
Here is the current market situation from CNN Money
North and South American markets are mixed today. The IPC is up 0.77% while the S&P 500 gains 0.53%. The Bovespa is off 1.40%.
Traders Corner – Health of the Market
|Investors.com Members Sentiment:||% Bullish (the balance is Bearish)||54%|
|CNN’s Fear & Greed Index||Above 50 = greed, below 50 = fear||11%|
|Investors Intelligence sets the breath||Above 50 bullish||47.1%|
|StockChart.com Overbought / Oversold Index ($NYMO)||anything below -30 / -40 is a concern of going deeper. Oversold conditions on the NYSE McClellan Oscillator usually bounce back at anything over -50 and reverse after reaching +40 oversold.||-37.00|
|StockChart.com NYSE % of stocks above 200 DMA Index ($NYA200R)||$NYA200R chart below is the percentage of stocks above the 200 DMA and is always a good statistic to follow. It can depict a trend of declining equities which is always troubling, especially when it drops below 60% – 55%. Dropping below 40%-35% signals serious continuing weakness and falling averages.||38.89%|
|StockChart.com NYSE Bullish Percent Index ($BPNYA)||Next stop down is ~57, then ~44, below that is where we will most likely see the markets crash.||53.19%|
|StockChart.com S&P 500 Bullish Percent Index ($BPSPX)||In support zone and rising. ~62, ~57, ~45 at which the markets are in a full-blown correction.||54.60%|
|StockChart.com 10 Year Treasury Note Yield Index ($TNX)||ten year note index value||22.91|
|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||76.67|
|StockChart.com NYSE Composite (Liquidity) Index ($NYA)||Markets move inverse to institutional selling and this NYA Index is followed by Institutional Investors||10,727|
What Is Moving the Markets
|Here are the headlines moving the markets.|
U.S. stocks rose, though pulled back from their earlier highs, on the heels of gains in Chinese and European shares.
Reports of a bigger production run show Apple is more bullish on the next iPhone than Wall Street.
Chinese shares made their biggest daily gain in six years, a tentative step toward restoring confidence in Beijing’s suite of measures to rescue its stock market.
(Reuters) – U.S. stocks were higher in early afternoon on Thursday as Beijing’s efforts to halt a rout in Chinese stocks lifted markets around the world.
(Reuters) – Coty Inc has sealed a deal to buy Procter & Gamble Co’s beauty business, which includes brands such as Clairol and Wella, in a $12.5 billion transaction that will make Coty the world leader in perfume and hair care.
LUXEMBOURG/ATHENS (Reuters) – The European Union’s chairman joined growing international calls for Greece to be granted debt restructuring as part of any new loan deal if it delivers convincing reforms to avert imminent bankruptcy.
The global economy may be even more at risk from China and Greece than global markets.
NEW YORK (Reuters) – The New York Stock Exchange said on Thursday that the nearly four-hour trading halt on the exchange on Wednesday was due to a technical problem that stemmed from new software that was rolled out the previous evening.
Moments ago the NYSE released its explanation why its was offline for nearly 3.5 hours. Here is the official narrative:
In his latest “Twilight Zone” comment piece, BofA’s Michael Hartnett notes that YTD global asset returns, paltry as they are, are as follows: US dollar 7.3%, stocks 2.0%, cash flat, fixed income -3.0%, commodities -3.8%, and are summarized in the table below:
But most curious was the following:
Which is why when the Fed’s members say:
BRAINARD: FED WATCHING DEVELOPMENTS IN GREECE, CHINA CLOSELY
What they mean is they are watching both the 200DMA and any surges in cross-asset vol, which in the aftermath of China, and Greece, has been surging, and what’s worse, cross-asset correaltion is soaring and rapidly on its way to 1.000.
Which is why those more cynical inclined have been asking: since the only reason the Fed is hiking rates is to have an “economic” alibi to justify QE4, …
Federal Reserve governor Lael Brainard said it is important for the regulator to consider including a new capital surcharge for the biggest banks in its annual “stress tests.”
The deal includes hair products like Nice & Easy and VS Salonist, as well as cosmetics and fine fragrances from Gucci and Dolce & Gabbana.
The cancellation of a pipeline contract by Gazprom merely adds to long list of potential concerns for the Italian oil-field services company.
DETROIT (Reuters) – To meet robust U.S. demand for its Rogue small crossover vehicle, Nissan Motor Co said on Thursday it will export the model from Japan to North America, beginning next year.
Wall Street is trying out artificial-intelligence services that use software to produce research reports.
Facebook announced a set of features that will give users more control over what they want to see in their news feed. In essence, you get to reprogram the social network’s algorithm.
The topic of IMF’s comedic forecasts and resulting disastrous policy errors has been discussed extensively, and repeatedly, over the years both elsewhere, and here. And while it does no justice to the human tragedy that ordinary Greeks have had to go through as part of 5 years of failed “bailouts” designed to preserve the wealth of German bankers, Greek oligarchs and a few corrupt politicians, the quarterly World Economic Outlook update affords even the most bankrupt Greeks, not to mention everyone else, an opportunity to laugh at what are now 5+ years of truly hilarious economic forecast hockeysticks, even as the reality continues to deteriorate with every passing year.
Case in point: earlier today the IMF released its latest forecast. In it, 2015 global GDP was cut from 3.5% to 3.3% due to previously unforeseen “risks from Greece to China”. Or rather we should say cut again. Here is the history of the IMF’s 2015 global GDP forecast started with July 2014:
But who cares about constantly being wrong right here, right now (aside from 11 million Greeks that is) …
WASHINGTON (Reuters) – The eight most important U.S. financial institutions may still cast too large of a shadow over the banking system, according to a Federal Reserve official on Thursday, and the firms could realize it’s in the best interest of stakeholders to shrink.
Hit by tumbling iron-ore prices, mining companies deep in the Australian outback are exploring a new strategy for cash: storing nuclear waste.
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