Written by Gary
Wall Street enters the afternoon session flat (SPY-0.03% after paring earlier morning gains with investors looking for more clarity on Trump’s policies. Oil fell more than 2 percent to its lowest in three months today and the end of the 30-year-old bull run in bonds, as investors seek to favor stocks.
Here is the current market situation from CNN Money | |
 | North and South American markets are mixed. The IPC is higher by 1.20%, while the Bovespa is leading the S&P 500 lower. They are down 7.73% and 0.11% respectively. |
Traders Corner – Health of the Market
| Index | Description | Current Value |
| Investors.com Members Sentiment: | % Bullish (the balance is Bearish) | 70% |
| CNN’s Fear & Greed Index | Above 50 = greed, below 50 = fear | 50% |
| Investors Intelligence sets the breath | Above 50 bullish | 55% |
| StockChart.com Overbought / Oversold Index ($NYMO) | anything below -30 / -40 is a concern of going deeper. Oversold conditions on the NYSE McClellan Oscillator usually bounce back at anything over -50 and reverse after reaching +40 oversold. | +4.40 |
| StockChart.com NYSE % of stocks above 200 DMA Index ($OEXA200R) | $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%. Following a major market correction, the conditions for safe re-entry are when: a) Daily $OEXA200R rises above 65% Secondary Bullish Indicators: a) RSI is POSITIVE (above 50) b) Slow STO is POSITIVE (black line above red line) c) MACD is POSITIVE (black line above red line) | 71 |
| StockChart.com NYSE Bullish Percent Index ($BPNYA) | Next stop down is ~57, then ~44, below that is where we will most likely see the markets crash. | 59% |
| StockChart.com S&P 500 Bullish Percent Index ($BPSPX) | In support zone and rising. ~62, ~57, ~45 at which the markets are in a full-blown correction. | 58% |
| StockChart.com 10 Year Treasury Note Yield Index ($TNX) | ten year note index value | 22.03 |
| 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 | 79.84 |
| StockChart.com NYSE Composite (Liquidity) Index ($NYA) | Markets move inverse to institutional selling and this NYA Index is followed by Institutional Investors | 10,647 |
What Is Moving the Markets
| Here are the headlines moving the markets. | |
| Trump rally falters as investors seek more clarity(Reuters) – The S&P 500 and the Dow Jones industrial average pared early gains and were little changed on Monday as investors looked for more clarity on President-elect Donald Trump’s policies. |
| Election over, Congress pivots to lame-duck debate over spendingWASHINGTON (Reuters) – With a bitter election campaign finally over, the Congress will reconvene this week to try to set aside its partisan differences long enough to keep the government from closing. |
| ‘Trump Thump’ whacks bond market for $1 trillion lossNEW YORK (Reuters) – Donald Trump’s stunning victory for the White House may mark the long-awaited end to the more than 30-year-old bull run in bonds, as bets on faster U.S. growth and inflation lead investors to favor stocks over bonds. |
| U.S. inflation expectations flat, low in October: NY Fed surveyNEW YORK (Reuters) – A measure of U.S. inflation expectations held mostly steady at low levels in October, with only some momentum higher, according to a Federal Reserve Bank of New York survey taken before Americans voted in this month’s presidential election. |
| Oil falls to three-month lows as gloom grows over OPECNEW YORK (Reuters) – Oil fell more than 2 percent to its lowest in three months on Monday, as the prospect of another year of oversupply and weak prices overshadowed chances OPEC will reach a deal to cut output. |
| Samsung to buy car tech company Harman for $8 billionSEOUL (Reuters) – Samsung Electronics has agreed to buy Harman International Industries in an $8 billion deal, marking a major push into the auto electronics market and the biggest overseas acquisition ever by a South Korean company. |
| Marketplace loan investors need borrower information: SECWASHINGTON (Reuters) – Investors in marketplace loans, where borrowers and funders are matched in online platforms, need to have adequate information about borrowers’ abilities to repay the debts, the U.S. Securities and Exchange Commission chair said on Monday. |
| U.S. finalizes long delayed ‘quiet cars’ rulesWASHINGTON (Reuters) – The U.S. Transportation Department on Monday finalized long-delayed rules that will require “quiet cars” like electric vehicles and hybrids to emit alert sounds at speeds of up to 18 miles per hour. |
| Siemens boosts software business with $4.5 billion dealFRANKFURT (Reuters) – German engineering group Siemens has agreed to buy U.S.-based Mentor Graphics in a $4.5 billion deal that will bolster its industrial software operations and help it keep pace with changes to manufacturing technology. |
| Correcting Some Misconceptions About A New Secular Bull MarketSubmitted by Lance Roberts via RealInvestmentAdvice.com, I recently penned a post discussing the idea of a “new secular bull market,” which, not surprisingly, garnered a good bit of push back from the “always bullish crowd.” However, while the thesis of a new secular bull market is interesting, it is based on some flawed assumptions on interest rates, valuations and time frames. Interest Rates The first assumption was that interest rates have now begun a secular shift higher based simply on the premise that rates are so low they must now go up.
While the chart clearly shows that interest rates have hit the same levels as last seen in 1946, the view rates will rise strongly from current levels assumes that the same economic drivers exist today. In 1946, the United States had just exited WWII which left Europe and Japan in ruins. The United States became the manufacturing center of the industrialized world as we assisted in the rebuilding of Germany, Britain, France and Japan. That is no longer the case today as much of our industrial manufacturing has been outsourced to other countries for lower costs, technology has replaced jobs by increasing productivity, and demographic trends now weigh against stronger econom … |
| SolarCity Could Give Tesla Too Much SunSolarCity’s third-quarter results highlight a major risk for Tesla Motors shareholders. |
| Chip-Merger Bash Finally Nearing Last CallHeady pace of big deals over past two years leaves few good options remaining. |
| Samsung-Harman: Getting in an Automotive GrooveSamsung’s $8 billion deal for automotive tech player Harman International looks like a ride worth taking |
| Follow these Twitter accounts to be smarter about moneyThese are some of the best social accounts in personal finance |
| Capitol Report: ‘Suspicious’ China has a pointed message for Donald Trump about Apple and BoeingThere will be dire consequences should Donald Trump wage a trade war with China, the country’s state-backed Global News publication warned on Sunday. |
| Trump’s lawyers ask for delay in Trump University caseHe’ll be too busy preparing for the presidency. |
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