Hello traders everywhere. For the most part stocks are trading higher today led by tech, but overall the stock market is looking at posting a loss for the week after finishing higher last week. This has been an up and down week for stocks, with the major averages posting strong gains early in the week only to trade lower as the week progressed.
10-year U.S. Note Yield
The benchmark 10-year U.S. note yield hit a four-year high earlier this week after the Fed released its minutes from their January meeting showing that the central bank sees increased economic growth and an uptick in inflation as justification to continue to raise interest rates gradually. All eyes will be on the new Fed Chair Jerome Powell’s testimony next week as he speaks for the first time.
The 10-year U.S. note yield traded below that four-year high, near 2.875% today.
Key Levels To Watch Next Week:
Continue reading "Weekly Loss On Tap For Stocks"
Hello traders everywhere. Bitcoin mounts a comeback and is on the rise for the ninth day in the last ten pushing through it's 50-day SMA where resistance had been located. Is this the new level of support? It's too soon to tell, but after rebounding off the 200-day SMA, it very well may be.
After a crash in January wiped out all of Bitcoin's gains from its record run in December it found support in mid-February at the 200-day SMA around the 7,800 level. Since then it has traded in a tight range before breaking out today and issuing a new green weekly Trade Triangle.
That drop coincided with statements by many analysts and market watchdogs that seemed to offer implied acceptance that the assets won't be regulated out of existence.
Still, until regulators gain a better grip on them, digital currencies will struggle for broader acceptance in mainstream finance and media.
Wal-Mart (WMT) is experiencing its largest intraday percentage fall in more than two years. The move down comes as they reported a lower-than-expected profit and posted a sharp decline in online sales growth during the holiday period. Its shares slumped 9.4%.
Other retailers including Target (TGT), Kroger (KR) and Costco Wholesale (COST) fell between 1.3% and 3.7%, dragging the S&P consumer staples SPLICES index down 1.62%.
Key Levels To Watch This Week:
Continue reading "Bitcoin Mounts A Comeback"
Hello traders everywhere. After a tumultuous few weeks, the S&P and the NASDAQ are set for their best week since December 2011, while the DOW is on track for its best week since November 2016. This is quite the turnaround after we saw record-breaking drops in the markets just last week, but it seems that most traders just shrugged off the correction and went into buy mode.
All three indexes are now trading back above the 50-day SMA and looking to continue higher as a bullish sentiment enters back into the markets. In fact, with this weeks move up the S&P 500 is only 4% lower from it's all-time of 2872.87. That a pretty incredible and quick recovery from the 11.8% drop, last week at it's lowest point.
Crude oil headed for its first weekly gain since last month as the rising stock market eased concern about economic growth. A weakening dollar has boosted the appeal of commodities priced in the U.S. currency. Crude oil has once again made it's way above $60 a barrel and is currently trading above $61. However, it's still below its 50-day SMA.
Continue reading "S&P 500 Has Best Week Since 2011"
Hello traders everywhere. The Commerce Department reported today that retail sales for January and December in the U.S. unexpectedly declined as receipts were revised lower, indicating that consumer demand in the first quarter may slow down.
Highlights From The Report
- Overall sales fell 0.3% (est. 0.2% gain), the most since February 2017, after little change in prior month (prev. 0.4% increase)
- Purchases at automobile dealers dropped 1.3%, the most since August
- So-called retail-control group sales, which are used to calculate GDP and exclude food services, auto dealers, building materials stores and gasoline stations, unchanged following a revised 0.2% decrease in December (prev. 0.3% gain)
- 7 of 13 major retail categories showed declines in receipts
- The Labor Department’s core Consumer Price Index, which excluded the volatile food and energy components, increased 0.3% in January. Economists polled by Reuters had forecast an increase of 0.2%. However, the year-on-year rise was unchanged at 1.8%
Continue reading "Declining Retail Sales Slow Down Market"
Hello traders everywhere. Volatility is indeed the theme of the week, and you have to wonder if this is the new normal for the foreseeable future. The DOW opened over 300 pts higher only to reverse course to head as much 460 pts or 1.9% lower on the day as we head into the close where the big moves have come in the last hour of trading. The DOW will issue a new red monthly Trade Triangle if it breaks through the 26,616.71 and that would indicate it’s heading lower.
Both the S&P 500 and NASDAQ have both issued new red monthly Trade Triangles indicating that they have both entered into a short trading territory. In fact, the S&P 500 is very close to breaking through its support at the 200-day MA at 2539.03. If that’s broken, we could see the market head lower. However, we’ve seen the S&P 500 pass through the 200-day twice in recent memory only to head back higher. Will it be different this time?
Crude oil is trading below $59 a barrel for the first time in 2018. This move lower has been about the growing U.S. inventory, an ever-increasing rig count, and a rising U.S. Dollar. It was reported today by Baker Hughes that 26 rigs were added this week bringing the total count to 791 active rigs. That’s 200 more active rigs than a year ago at the same time.
Bitcoin is up on the day and trading slightly above its 200-day MA which has given the cryptocurrency a level of support at the $7,958.53. Bitcoin seems to have calmed down and moved into a sidelines mode as we end the week.
Key Levels To Watch This Week:
S&P 500 (CME:SP500): 2,872.87
Dow (INDEX:DJI): 26,616.71
NASDAQ (NASDAQ:COMP): 7,501.58
Gold (NYMEX:GC.G18.E): 1,334.80
Crude Oil (NYMEX:CL.H18.E): 64.18
U.S. Dollar (NYBOT:DX.H18.E): 90.50
Bitcoin (CME:BRTI): 11,705.00
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