Written by Gary
Markets opened higher and then immediately began to slip downward towards the unchanged line as did the price of crude stopping at the $30 support. Chances are for crude to increase in price to clear out shorter’s. Many indicators are showing a possible path to the upside.
Here is the current market situation from CNN Money | |
North and South American markets are mixed today. The IPC is up 0.41% while the S&P 500 gains 0.07%. The Bovespa is off 1.06%. |
Chinese stock markets eke out a last-minute gain, a move that’s helped European markets to post further gains ahead of US open
LONDON (AP) — Chinese stock markets eked out a last-minute gain Tuesday, a development that’s helped European shares recoup further recent losses and Wall Street futures point to solid gains at the open. A modest pick-up from overnight lows in oil prices also helped to shore up the mood.
KEEPING SCORE: In Europe, the FTSE 100 index of leading British shares was up 1.6 percent at 5,967 while Germany’s DAX rose 2.2 percent to 10,045. The CAC-40 in France was 2.1 percent higher at 4,405. Wall Street was poised for a solid open too, with Dow futures and the broader S&P 500 futures up 0.7 percent.
CHINA VOLATILITY: Worries about the Beijing’s ability to manage financial markets coupled with deepening fears about a protracted slowdown in the world’s No. 2 economy have kept investors on edge
Preference is to get down into the BIG blue circle before looking to buy
Click her to see larger image.
Traders Corner – Health of the Market
Index | Description | Current Value |
Investors.com Members Sentiment: | % Bullish (the balance is Bearish) | 43% |
CNN’s Fear & Greed Index | Above 50 = greed, below 50 = fear | 20% |
Investors Intelligence sets the breath | Above 50 bullish | 27.0% |
StockChart.com Overbought / Oversold Index ($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. | -70.79 |
StockChart.com NYSE % of stocks above 200 DMA Index ($NYA200R) | $NYA200R chart below is the percentage of stocks above the 200 DMA and is always a good statistic to follow. It can depict a trend of declining equities which is always troubling, especially when it drops below 60% – 55%. Dropping below 40%-35% signals serious continuing weakness and falling averages. | 20.19% |
StockChart.com NYSE Bullish Percent Index ($BPNYA) | Next stop down is ~57, then ~44, below that is where we will most likely see the markets crash. | 31.25% |
StockChart.com S&P 500 Bullish Percent Index ($BPSPX) | In support zone and rising. ~62, ~57, ~45 at which the markets are in a full-blown correction. | 32.20% |
StockChart.com 10 Year Treasury Note Yield Index ($TNX) | ten year note index value | 21.58 |
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 | 74.19 |
StockChart.com NYSE Composite (Liquidity) Index ($NYA) | Markets move inverse to institutional selling and this NYA Index is followed by Institutional Investors | 9,528 |
What Is Moving the Markets
Here are the headlines moving the markets. | |
California board rejects Volkswagen’s diesel fix plan (Reuters) – The California Air Resources Board said on Tuesday it had rejected Volkswagen AG’s plan to fix 2.0 liter diesel cars with software that allow them to emit up to 40 times legally allowable pollution. | |
Oil slump nears $30 a barrel mark on unabated output NEW YORK (Reuters) – Crude oil prices lost more than 2 percent on Tuesday, extending a relentless selloff to trade within cents of $30 a barrel for the first time in 12 years on concerns about fragile Chinese demand and the absence of restraint in global production. | |
Wall St. rally loses steam as oil prices tumble (Reuters) – U.S. stocks were flat in afternoon trading on Tuesday, after an early rally was wiped out as crude oil prices once again held the markets hostage. | |
Ford unveils resurrected Lincoln Continental, targets China market (Reuters) – Ford Motor Co unveiled on Tuesday a new luxury flagship full-size Continental sedan aimed at Chinese and American consumers. | |
BlackRock reshuffles senior leadership of investment teams: memo NEW YORK (Reuters) – BlackRock Inc on Tuesday informed staff that it was reshuffling the managers of some of its most important investment units, including its stock and bond-picking businesses, according to an internal memo seen by Reuters. | |
High U.S. job openings point to pick-up in wage growth WASHINGTON (Reuters) – U.S. job openings rose in November and employers appeared to have trouble finding qualified workers, a trend that could trigger a pick-up in wage growth this year. | |
GM unveils technology to help avoid child heatstroke deaths DETROIT (Reuters) – General Motors Co said on Tuesday it will introduce a new safety system to remind drivers to check for children in the rear seats, and that it could eventually develop features to detect forgotten children. | |
Airbus shrugs off China concerns after outselling Boeing PARIS (Reuters) – Europe’s Airbus is unperturbed by China’s financial turmoil, sticking to robust demand forecasts on Tuesday after beating arch-rival Boeing in the annual tally of global aircraft orders, despite failing to close a gap on total deliveries with the world’s largest jetmaker. | |
Fed hikes need to be gradual, risk hurting emerging world: IMF chief PARIS (Reuters) – Further interest rate hikes by the U.S. Federal Reserve should be gradual or they risk hurting already fragile emerging economies, where many companies borrow in dollars, the head of the International Monetary Fund said on Tuesday. | |
Sharp Squeeze, Highest Foreign Central Bank Demand Since 2009 Lead To Scorching 3 Year AuctionIt just never fails. Earlier today, the 3 Year was the only place on the curve that was trading special in repo, at a rate of -0.35% as shown in the Stone McCarthy chart below, with no shortages at any other point: That, as regular readers know, has been a nearly flawless predictor of auction strength, and the potential for a short squeeze into the 1pm issuance. Sure enough, moments ago with the When Issued for today’s $24 billion in 3 Year paper trading at 1.188%, we were confident that as a result of the substantial short overhang, the auction would price well through the WI. It did so, and by a mile: the final high yield print was a whipping 1.174%, stopping some 1.4 bps through the When Issued. So much for the pricing dynamics. However, demand itself was scorching as well. While the Bid to Cover dipped modestly from 3.14 a month ago to 2.944, it was the surge in Indirect interest, aka foreign central banks, that made this auction memorable: at 62.8%, it was the highest since November 2009. And with Directs taking down 9.4% of the auction, it meant that Dealers would end up with just 27.8% of the final allocation: this in turn was the lowest since November 2009. And so, once again, we get vivid proof that whenever stocks are suffering from a Risk Off moment, investors continue to pile into the safety of US paper, be it in the primary or secondary market. | |
The Real Value Of A Powerball TicketSubmitted by Matt McCaffrey via The Mises Institute, Alex Tabarrok has a fun post calculating the monetary value of a Powerball ticket. He estimates that, as of the most recent drawing, each $2 ticket carries an expected monetary value of roughly $2.73. Superficially then, it’s worthwhile to buy one. However, Tabarrok also points out this is only true for a simple expected value calculation; after accounting for taxes and the possibility of a shared prize, a ticket’s monetary value is actually substantially lower (around $.75), making it a poor investment. So why do people buy them? Are consumers hapless rubes throwing away their hard-earned money in exchange for nothing? Not necessarily. The reason is simple: there’s much more to valuation and choice than expected monetary value. In fact, I suspect almost no one buys a ticket with any such calculation in mind. Rather than a cold estimate of the probability of future returns, the Powerball actually illustrates the subjective theory of value. There are many ways for people find value in the Powerball beyond its expected monetary payoffs. Tabarrok observes, for example, that people find pleasure in anticipating the drawing. Such excitement is actually a major attraction of games of chance, where players have no control over the outcome. In fact, I doubt most people playing the Powerball seriously believe they’ll win. Instead, people treat a ticket as the price of daydreaming about what they’d do with an enormous pile of cash. You can’t win without playing, so people pay a small amount as a way to justify spending their scarce time imagining their own Scroo … | |
The Arrests Begin: Sweden Police Scramble To Respond To Refugee Sex Assault CoverupOn Monday, we brought you œMassive Coverup Exposed In Sweden As Media, Cops Hid Migrant Sex Attacks in which we detailed an evolving story out of Stockholm where police and some members of the media stand accused of covering up a wave of sexual assaults that allegedly occurred at a festival in August of last year. According to Nyheter Idag, a reporter for the prominent daily Dagens Nyheter had an opportunity to talk with police about the attacks but ultimately shied away from the story when it became apparent that many of the accused were migrants. Just a day before the Nyheter Idag story was published, Dagens Nyheter ran its own account of the incident and blamed police for covering up the attacks. That certainly looked like an effort to get out ahead of the Nyheter Idag exposé but whatever the case, someone (or several someones) apparently took it upon themselves to keep the festival assaults from getting publicized for fear of sparking an anti-migrant backlash. Here’s what we wrote on Monday:
Long story short, the attacks in Cologne have made it impossible to sweep the Stockholm assaults under the rug and now, authorities and politicians are rushing to “investiga … | |
Oil Resumes Retreat as Dollar RisesOil prices flipped back down to losses, with a dollar rally helping a slate of traders betting on oil’s continuing fall toward $30 a barrel. | |
Stocks Pare Gains as Oil Turns NegativeU.S. stocks pared early gains Tuesday as a renewed drop in oil prices pushed energy shares down further. The move lower occurred even as Chinese stocks managed to eke out a gain. | |
How to Profit From Rising Rents: Build ApartmentsAfter six years of rising apartment rents in U.S. cities, investors from all corners of the real-estate industry are piling into new projects in a bet the boom still has a long way to run. | |
November 2015 JOLTS Job Openings Year-over-Year Growth Rate Marginally ImprovedWritten by Steven Hansen The BLS Job Openings and Labor Turnover Survey (JOLTS) can be used as a predictor of future jobs growth, and the predictive elements show that the year-over-year growth rate of unadjusted private non-farm job openings marginally improved from last month. The growth rate trends marginally improved in the 3 month averages, but the 2015 year-to-date averages continue to decline. | |
Alcoa’s stock plunges to near 7-year lowAlcoa Inc.’s stock tumbles to the lowest level since the Great Recession, as the aluminum giant kicks off fourth-quarter earnings season with mixed results. |
Earnings Summary for Today
leading Stock Positions
Current Commodity Prices
Commodities are powered by Investing.com
Current Currency Crosses
The Forex Quotes are powered by Investing.com.
To contact me with questions, comments or constructive criticism is always encouraged and appreciated: