Written by Gary
Wall Street climbs higher, but short of yesterdays highs (SPY +0.6%). Strong U.S. dollar (103.13) has become a wrecking ball to oil, gold and silver as crude oil falls to its lowest level of the week at the $50 support, before recovering (WTI 51.15).
Here is the current market situation from CNN Money | |
 | North and South American markets are mixed today. The S&P 500 is up 0.66% while the Bovespa gains 0.03%. The IPC is off 0.53%. |
Traders Corner – Health of the Market
| Index | Description | Current Value |
| Investors.com Members Sentiment: | % Bullish (the balance is Bearish) | 75% |
| CNN’s Fear & Greed Index | Above 50 = greed, below 50 = fear | 88% |
| Investors Intelligence sets the breath | Above 50 bullish | 66% |
| StockChart.com Overbought / Oversold Index ($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. | -5.32 |
| 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 $OEXA200R rises above 65% Secondary Bullish Indicators: a) RSI is POSITIVE (above 50) b) Slow STO is POSITIVE (black line above red line) c) MACD is POSITIVE (black line above red line) | 80% |
| StockChart.com NYSE Bullish Percent Index ($BPNYA) | Next stop down is ~57, then ~44, below that is where we will most likely see the markets crash. | 40% |
| StockChart.com S&P 500 Bullish Percent Index ($BPSPX) | In support zone and rising. ~62, ~57, ~45 at which the markets are in a full-blown correction. | 72% |
| StockChart.com 10 Year Treasury Note Yield Index ($TNX) | ten year note index value | 25.75 |
| 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 | 83.93 |
| StockChart.com NYSE Composite (Liquidity) Index ($NYA) | Markets move inverse to institutional selling and this NYA Index is followed by Institutional Investors | 11,149 |
What Is Moving the Markets
| Here are the headlines moving the markets. | |
| Murdoch’s Fox agrees $14.6 billion Sky deal to expand empireLONDON (Reuters) – Rupert Murdoch’s Twenty-First Century Fox has struck a $14.6 billion deal to buy European pay-TV firm Sky that unites a media empire across two continents and helps it take on rivals like Netflix in the battle for viewers. |
| Wall Street rises as banks jump on interest rate outlook(Reuters) – U.S. stocks hovered near record highs on Thursday as bank stocks rose, and investors viewed the Federal Reserve’s interest rate outlook as a sign of confidence in the economy. |
| Yahoo shares fall on worries new breach will kill Verizon deal(Reuters) – Yahoo Inc shares fell more than 5 percent on Thursday after the technology company disclosed a second massive data breach that raised fears Verizon might kill a deal to buy its core internet business. |
| U.S. states sue Mylan, Teva, others for fixing drug prices(Reuters) – Twenty states filed a lawsuit Thursday against Mylan NV , Teva Pharmaceuticals and four other generic drug makers, saying they conspired on pricing of two common generic drugs, according to a copy of the complaint. |
| U.S. banks must pay up to $2 billion more per year to shield Wall Street: FedWASHINGTON (Reuters) – The largest U.S. banks will have to pay as much as $2 billion more a year to insure against a future market collapse, the U.S. Federal Reserve said on Thursday, as it outlined a new rule designed to further protect the financial system. |
| Rising rents lift U.S. inflation; labor market tightensWASHINGTON (Reuters) – Rising rents lifted underlying U.S. inflation in November, pointing to a steady build-up of price pressures in the economy that could support more interest rate increases from the Federal Reserve next year. |
| China expected to lose top U.S. creditor crown to Japan as yuan strugglesBEIJING (Reuters) – China will soon be dethroned by Japan as the top holder of U.S. government debt as the Chinese central bank has been dipping into its foreign exchange reserves to support the yuan, while its Japanese counterpart has been content to allow the yen to weaken, economists said. |
| Targeting U.S. automaker signals possible China retaliation over Trump talkWASHINGTON/BEIJING (Reuters) – China’s plan to punish a U.S. automaker accused of price-fixing is a sign of how Beijing could retaliate if President-elect Donald Trump upends decades of relations between the two nations. |
| New York regulator fines Italy’s Intesa Sanpaolo $235 millionNEW YORK (Reuters) – Intesa Sanpaolo SpA , Italy’s biggest retail bank, agreed on Thursday to pay New York state’s financial regulator a $235 million fine for anti-money laundering failures and violations of bank secrecy laws, officials said. |
| Meet Donald Trump’s New Press Secretary (Maybe)Meet Fox News host Kimberly Guilfoyle, who as The Hill reports, is a contender to be Donald Trump’s White House press secretary.
Guilfoyle, a host of the Fox opinion panel show, “The Five,” was seen recently at Trump Tower for lunch with senior Trump transition team members, Politico said on Wednesday, citing two unidentified sources. Guilfoyle is a former assistant district attorney in San Francisco. She was once married to former San Francisco Mayor Gavin Newsom, a Democrat. She is said to have a friendly relationship with Trump’s oldest daughter, Ivanka, and Ivanka’s husband, publisher Jared Kushner.
Republican National Committee and Trump transition spokesman Sean Spicer is still seen as a leading contender for position, as is another Fox News personality, Laura Ingraham. * * * We know who gets our vote. … |
| Silver Slumps To $15 Handle After Dollar’s Biggest Surge Since BrexitCarnage in precious metals continues as the dollar index soars to 14-year highs, surging most since Brexit… The Dollar Index is now at its highest since Dec 2002…
And it’s a bloodbath in barbarous relics…
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| Freddie Mac Issues Warning As Mortgage Rates SoarBlink, and you missed your chance to refi. And according to nationalized mortgage giant Freddie Mac, it’s about to get worse. As shown last week, as a result of the recent spike in yields, the population of eligible refinance candidates has already plunged by more than half. As Black Knight pointed out, as of the end of November, though there are still 2M borrowers who could save $200+/month by refinancing and a cumulative $1B/month in potential savings, this is less than half of the $2.1B/ month available just four weeks ago.
Since then the number has shrunk substantially as rates have continued their relentless move higher. According to the latest Wells Fargo refi rates, a 30 Year Fixed mortgage will now cost a prospective creditor some 4.625%. This was in the mid-3%s just a few months ago.
It was not just refis: according to the latest Freddie Mac update, the 30 Year Fixed has jumped to 4.16%, from 3.94% just a month ago, and 3.5% as of early October. As Freddie notes in its latest press release, this week’s mortgage rate survey was completed prior to the FOMC announcement. The 30-year mortgage rate rose 3 basis points on the w … |
| Tesla Could Lose Lead in Electric Cars to Big AutomakersIt is always tempting to frame competition in the car industry as a race. But making a killer product matters more than crossing the finishing line first. |
| Bank Investors Moving Too Fast on Rate HopesEuropean bank stocks have risen with bond yields, but better interest income isn’t yet here |
| Financials Are Cheap, Even After the RallyFinancial stocks could have room to rise further are interest rates keep climbing. |
| December 2016 Philly Fed Manufacturing Survey Significantly Improves and Remains In Expansion.
The Philly Fed Business Outlook Survey improved significantly and remains expansion. Key elements were strong. |
| Market Extra: What Dow 20,000 means for stock-market investorsWhat’s in a number anyway? That may be the question stock-market investors pose to themselves as the Dow Jones Industrial Average inches closer to the psychological milestone of 20,000. |
| Mark Hulbert: Why Dow 20K is the mark of an underachieving marketDow 19K was only a few weeks ago, but the Dow Jones Industrial Average has actually been an underachiever this century vs. the last one. |
| MarketWatch First Take: Why Trump-Silicon Valley chasm is too wide to bridgeAs Donald Trump meets chieftains from the tech industry, it’s worth examining why Silicon Valley and the president-elect are at loggerheads. |
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