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Futures (ES, NQ, GC, CL) – 28 June 2017

28 June 2017

Daily status of the futures of Gold (GC), WTI Crude (CL), Nasdaq 100 (NQ) and S&P 500 (ES)

Futures (ES, NQ, GC, CL) – 27 June 2017

27 June 2017

Daily status of the futures of Gold (GC), WTI Crude (CL), Nasdaq 100 (NQ) and S&P 500 (ES)

Futures (ES, NQ, GC, CL) – 23 June 17

23 June 2017

Daily status of the futures of Gold (GC), WTI Crude (CL), Nasdaq 100 (NQ) and S&P 500 (ES)

Options – 18 December 15 Monthly Income – Bull PUT on SPX

Update

14 December 2015

We closed this CALL credit spread and bought it back for $0.05. Overall, it was a small profit to be redeployed for the next trade.

8 December 2015

We sold a monthly CALL credit spread at 2135/2145 for $1.10. The total Return-on-Risk for this new trade is 1.10/8.90 = 12.36 % excluding transaction cost. The PUT credit spread was closed for $1.75.

27 November 2015

We sold a monthly PUT credit spread at 2015/2005 for $1.15. The total Return-on-Risk for this new trade is 1.15/8.85 = 13.00 % excluding transaction cost. Expiration is at 9:30 am, 18 December 2015 (EST)

Options – 21 August 15 Monthly Income – Bull PUT on SPX

Update

21 August 2015

This PUT credit spread expired worthless. The Settlement price was 2015.47.

13 July 2015

We sold a monthly PUT credit spread at 1980/1970 for $1.30. The total Return-on-Risk for this new trade is 1.30/8.70 = 14.94 % excluding transaction cost. Expiration is at 9:30 am, 21 August 2015 (EST)

Options – 17 July 15 Monthly Income – Bull PUT on SPX

Update

13 July 2015

We closed this trade by buying it back for $0.05. Option expiration is this coming Friday morning.

15 June 2015

We sold a monthly PUT credit spread at 1980/1970 for $1.30. The total Return-on-Risk for this new trade is 1.30/8.70 = 14.94 % excluding transaction cost. Expiration is at 9:30 am, 17 July 2015 (EST)

Options – 18 June 15 Monthly Income – Bear Call on SPX

Update

5 June 2015

We closed this trade by buying it back for $0.05. Option expiration is another 2 weeks away.

18 May 2015

We sold a monthly CALL credit spread at 2185/2195 for $1.05. The total Return-on-Risk for this new trade is 1.05/8.95 = 11.7 % excluding transaction cost. Expiration is at 9:30 am, 19 June 2015 (EST)

9 September 2016 – Market plunged on interest rate rise fears


The indices plunged on interest rate hike fears heightened by comments from several Fed officials. Boston Fed President Eric Rosengren laid out a case for another rate hike in 2016 when he spoke about asset overvaluation. He has previously highlighted the madness going on in commercial real estate. Another Fed official Daniel Tarullo said he is open to the possibility of a rate hike this year.

News about North Korea’s testing of a fifth nuclear device also weigh down on sentiment. In the background, the negative coverage in the US election, terrorism in Europe and war in Syria continue to weigh on market sentiment. On Thursday, the European Central Bank (ECB) left all three main rates unchanged and there is no discussion on the extension of its asset purchase plan.

WTI crude gave back yesterday’s gain as it tumbled 3.6% and closed back at $45.71 per barrel. Gold and Silver sold off in sympathy with the general market.

Bond futures signaled weakness yesterday and continued its sell-off today. The dollar index gained for the day as the stocks, bonds and energy markets sold off.

Dow Transportation plunged on market open and closed with a huge bearish marubozu candle below its 50 SMA. Daily momentum is neutral. Daily volumetric buying pressure is at 73.6%.

On the weekly chart, the index is in a Squeeze and it closed with bearish candle below its 8 EMA.

Dow Industrial plunged on market open and closed with a huge bearish marubozu candle. Momentum is downward. Short term volumetric buying pressure is at 13.1%. The index is in a monthly Squeeze.

On its weekly chart, the index closed with a big bearish marubozu candle on its 21 EMA.

Russell 2000 plunged and sliced through its 8 EMA and 21 EMA and closed with a huge bearish marubozu candle just above its 50 SMA. Momentum remains upward. Volumetric buying pressure is at 39.4%.

On its weekly chart, the index closed with a bearish marubozu candle below its 8 EMA.

Nasdaq 100 traded indecisively for the first hour after market open. It then plunged through its support and closed with a huge bearish marubozu candle below its 50 SMA. Momentum has reversed downward. Volumetric buying pressure is at 34%. The index is in a monthly Squeeze.

On its weekly chart, the index closed with a big bearish marubozu candle below its 8 EMA.

S&P 500 plunged on market open and closed with a huge bearish marubozu candle. Momentum has reversed downward. Volumetric buying pressure is at 45.6%. The index has exited its daily Squeeze. It is still in its monthly Squeeze.

On its weekly chart, the index closed with a big bearish marubozu candle just above its 21 EMA.

Metals and Commodities
On the weekly chart, gold futures closed at $1331.8 and formed an inverted hammer candle below its 8 EMA. Momentum remains upward.

On the weekly chart, silver futures closed at $19.130 with a bearish inverted hammer candle below its 200 SMA and 8 EMA. Momentum remains upward.

On the weekly chart, crude oil closed at $45.71 per barrel with an inverted hammer candle on its 8 EMA. Momentum remains upward.

On the weekly chart, agriculture (DBA) ETF closed at 20.34 with a small spinning top doji candle below all its moving averages. Momentum is downward.

On the weekly chart, commodities (DBC) ETF closed at 14.65 with a small bullish candle just below its 21 EMA. Momentum remains upward.

Bonds
On the weekly chart, high yield bond ETF (HYG) closed at 85.77 with a bearish marubozu candle below its 21 EMA. Momentum remains upward.

On the weekly chart, bond ETF (TLT) closed at 135.52 with a big bearish candle below its 21 EMA. It has exited its daily Squeeze.

Currencies
On the weekly chart, the dollar index closed at 95.335 with a bearish hammer candle below its 21 EMA. Momentum is neutral.

On the weekly chart, EUR/USD closed at 1.12301 with an inverted hammer candle above all its moving averages. Momentum is neutral.

On the weekly chart, USD/JPY closed at 102.713 bearish hammer candle on its 8 EMA. Momentum remains downward.

Relative Strength – Sectors
On a monthly lookback, only XLE has lost less than the S&P 500.

On a 3-month lookback, XLF, XLK, XLE, XLI and XLB are outperforming the S&P 500.

Market Internals
Vix closed at 17.50. Vix futures is at 16.40. Skew is at 125.25. Market sentiment has turned bearish. Market breadth is sloping downward. Volumetric accumulation/distribution is sloping downward.

The Week Ahead
Friday’s trading has shown the market can turn on a dime by news of potential rate hike. The concerns that have been around is that the market is over-valued and any hint of a rate hike even if it is a small one, send investors fleeing for the exit.

Another concern is that the economic backdrop is deteriorating. High quality and paying jobs are not being created. From manufacturing to services to jobs, the rebound in June and July is starting to peter out.

Bonds and stocks have been trading in the same direction rather than opposite to each other. The more typical move is for money to rotate between bonds and the equity market rather than trade in sympathy with each other. That bears watching as it could be a signal of major moves in the market.

The prognosis is that the market has signaled volatility and possibility the start of a downtrend.

Stock of the Day
There is no stock of the day as we observe what the market is doing.

 

To YOUR wealth!

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