11Jan2016 Market Update: WTI Crude Dipped Below $31, Moderate Losses On Wall Street, Dead Cat Bounce Expected Soon

Written by Gary

WTI crude dropped into the high 30’s momentarily, but the markets remained unmoved, trading sideways with moderate losses. The DOW is down 0.6% and has pierced the ‘S1’ level. The US dollars is trading steady, quietly in the high 98’s.

Here is the current market situation from CNN Money

A brutal new year selloff in oil markets deepened today, with prices plunging to new 12-year lows as further ructions in the Chinese stock market threatened to knock crude even lower. Global risks including a major slowdown in China and, of course, continued low oil prices

Traders Corner – Health of the Market

Index	Description	Current Value
Investors.com Members Sentiment:	% Bullish (the balance is Bearish)	46%
CNN’s Fear & Greed Index	Above 50 = greed, below 50 = fear	16%
Investors Intelligence sets the breath	Above 50 bullish	29.1%
StockChart.com Overbought / Oversold Index ($NYMO)	anything below -30 / -40 is a concern of going deeper. Oversold conditions on the NYSE McClellan Oscillator usually bounce back at anything over -50 and reverse after reaching +40 oversold.	-66.25
StockChart.com NYSE % of stocks above 200 DMA Index ($NYA200R )	$NYA200R chart below is the percentage of stocks above the 200 DMA and is always a good statistic to follow. It can depict a trend of declining equities which is always troubling, especially when it drops below 60% – 55%. Dropping below 40%-35% signals serious continuing weakness and falling averages.	20.41%
StockChart.com NYSE Bullish Percent Index ($BPNYA)	Next stop down is ~57, then ~30, below that is where we will most likely see the markets crash.	31.72%
StockChart.com S&P 500 Bullish Percent Index ($BPSPX)	In support zone and rising. ~62, ~57, ~45 at which the markets are in a full-blown correction.	33.20
StockChart.com 10 Year Treasury Note Yield Index ($TNX)	ten year note index value	21.44
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	73.31
StockChart.com NYSE Composite (Liquidity) Index ($NYA )	Markets move inverse to institutional selling and this NYA Index is followed by Institutional Investors	9,462

What Is Moving the Markets

Here are the headlines moving the markets.
	Wall Street wobbles as health stocks, oil prices drop (Reuters) – Wall Street struggled for gains in volatile trading on Monday, weighed down by healthcare stocks and oil prices hitting fresh 12-year lows, ahead of the start of corporate earnings season.
	Detroit’s auto industry is changed, but not as Washington planned DETROIT (Reuters) – When U.S. President Barack Obama visits Detroit’s annual auto show on Jan. 20, exactly one year before he leaves office, he is expected to tout how much the industry has changed since he orchestrated a federally funded rescue in 2009. Â
	Global risks are chief concern for U.S. economy: Fed’s Lockhart ATLANTA (Reuters) – Global risks including a slowdown in China and continued low oil prices are now the chief risks to what is an otherwise promising outlook for the U.S. economy, Atlanta Federal Reserve Bank President Dennis Lockhart said on Monday.
	Fiat Chrysler CEO says major shift on way for North American plants DETROIT (Reuters) – Fiat Chrysler’s Chief Executive Sergio Marchionne said on Monday the company plans to make significant shifts to its North American production footprint, which will be announced as part of the company’s quarterly financial results on Jan. 27.
	Oil tumbles nearly 5 percent to new lows; analysts warn of $20s NEW YORK/LONDON (Reuters) – A brutal new year selloff in oil markets deepened on Monday, with prices plunging as much as 5 percent to new 12-year lows as further ructions in the Chinese stock market threatened to knock crude into the $20s.
	Drugmaker Shire wins Baxalta for $32 billion after six-month pursuit LONDON (Reuters) – Drugmaker Shire Plc clinched its six-month pursuit of Baxalta International Inc on Monday with an agreed $32 billion cash and stock offer, catapulting it to a leading position in treating rare diseases.
	China’s yuan spikes higher, but stocks tumble SHANGHAI (Reuters) – China guided its yuan currency higher on Monday, and offshore it surged against the dollar, spurred by what traders called aggressive intervention by Beijing, although Chinese stocks tumbled again as doubts persisted over policymakers’ intent.
	Starboard urges Macy’s to strike real-estate deals (Reuters) – Hedge fund Starboard Value LP urged department store chain Macy’s Inc to enter into joint ventures for its stores, including its flagship Herald Square store in New York, to realize greater value from its real estate assets.
	Investor group offers to buy American Apparel for $300 million (Reuters) – Hagan Capital Group and Silver Creek Capital Partners said they had jointly offered to acquire bankrupt teen apparel retailer American Apparel Inc for $300 million.
	WTI Crude Collapses To $30 Handle, Stocks Plunge As Rate-Hike Odds Tumble With rate hike odds for March plunging from over 55% a week ago to just 38% now, it appears faith in The Fed has utterly failed. WTI traded down to $30.97 – the lowest ssince Dec 2003. Fed #Fail… WTI punched lower to a $30 handle for the first time since December 2003.. and that has dragged stocks back into the red…
	Here is How You Fix the Oil Market By EconMatters The Mining Industry Approach I hate always being the smartest person in the room, because I end up doing my job and everyone else`s as well. But here is a giant freebie for all those stupid, clueless oil executives out there in North America. What you are currently doing – or not doing by being effectively a deer stuck in headlights – isn`t working. You cannot take a clue from the miserable strategy employed be the mining industry where they are waiting for each other to go out of business, meanwhile the entire industry as a group is sinking like the Titanic. And unfortunately the consulting industry doesn`t know jack shit about energy strategy, other th …
	“Nothing Is Moving,” Baltic Dry Crashes As Insiders Warn “Commerce Has Come To A Halt” The continued collapse of The Baltic Dry Index remains ignored by most – besides we still have Netflix, right? But, as Dollar Vigilante’s Jeff Berwick details, it appears the worldwide ‘real’ economy has ground to a halt!! Last week, I received news from a contact who is friends with one of the biggest billionaire shipping families in the world. He told me they had no ships at sea right now, because operating them meant running at a loss. This weekend, reports are circulating saying much the same thing: The North Atlantic has little or no cargo ships traveling in its waters. Instead, they are anchored. Unmoving. Empty. You can see one such report here. According to it, Commerce between Europe and North America has literally come to a halt. For the first time in known history, not one cargo ship is in-transit in the North Atlantic between Europe and North America. All of them (hundreds) are either anchored offshore or in-port. NOTHING is moving. This has never happened before. It is a horrific economic sign; proof that commerce is literally stopped. We checked VesselFinder.com and it appears to show no ships in transit anywhere in the world. We aren’t experts on shipping, however, so if you have a better site or source to track this apparent phenomenon, please let us know. We also checked
	Yuantervention Extreme – Offshore Yuan Explodes 850 Pips Higher, Biggest Jump Ever While some central banks prefer to stealthily ‘manage’ their markets, a bid here, a stick-save there, today’s epic intervention, short-squeeze, carry-trade-carnage in Offshore Yuan is the most visible hand yet in the new normal world of central planning. USDCNH is now down over 850 pips on the day – a record 1.25% strengthening in the offshore Yuan… CNH is now 15 handles stronger from the “halt” spike lows last week… This is the biggest single-day drop in USDCNH (strengthening in Offshore Yuan) since records began… One wonders if the move is over now…
	China Puts Forex Markets in a Fix Sharp swings in the value of China’s currency this year suggest the country’s central bank has changed the way it sets the yuan’s rate each day. The problem for investors is working out just how Beijing is now going about it.
	December 2015 Conference Board Employment Index Rebounds But Still Suggests Slower Job Growth Written by Steven Hansen The Conference Board’s Employment Trends Index – which forecasts employment for the next 6 months – rebounded relative to last month, but still forecasts a slower rate of job growth. Consider that this projected growth is six months from now.