Global Tensions Add Stress To Tense Stock Market

Hello traders everywhere. After what felt like a small positive victory on Friday has quickly subsided after we woke up this morning to news of growing global tensions with Saudi Arabia and yet another sell-off in the tech sector, a falling dollar, and treasuries.

The dollar is trading near a two-week low against its peers after U.S. retail sales disappointed in September. West Texas crude oil traded around $71 a barrel, less than a dollar away from issuing a red weekly Trade Triangle, amid tensions between Saudi Arabia and the U.S. over the disappearance of a prominent journalist and gold is headed toward its fourth advance in five days.

200-day moving average

The DOW was in positive territory for most of the morning trading above its 200-day moving average, the only index to do so, but has slipped into negative territory this afternoon. Both the S&P 500 and NASDAQ are both trading below their 200-day moving average after opening the week in negative territory. While the NASDAQ has already triggered a new red monthly Trade Triangle the S&P 500 is holding on at the moment, but that could change if it continues to trade below the 200-day Moving Average.

Key Events Coming Up This Week:

  • APEC finance ministers meet in Port Moresby, Papua New Guinea
  • China's new yuan loans may have risen to 1.36 trillion yuan ($196 billion) in September from August’s 1.28 trillion yuan as officials sought to buoy economic growth. On Tuesday, the consensus is for CPI to pick up to 2.5% growth and PPI to slow to 3.6%
  • Third-quarter GDP for China comes Friday, with headline growth forecast to slow to 6.6% year on year from 6.7%, in addition to last month's retail sales and factory output
  • Minutes from the Federal Reserve's latest policy meeting are due on Wednesday, with investors focused on projections for further interest rate rises
  • Goldman Sachs, Morgan Stanley, and Netflix are among companies reporting this week
  • Euro-area governments, including Italy, must turn in fiscal budget proposals to the European Commission by midnight Monday

Key Levels To Watch Next Week:

Every Success,
Jeremy Lutz and