Hello traders everywhere. For the first time in a year WTI crude oil is traded below $54 a barrel hitting a low of $53.63. Oil fell as much as 6% as fears are surfacing that OPEC's planned production cuts will do little to stave off a surge in global stockpiles.
Bitcoin finally made a significant move to break out of the tight trading range that it had been trapped in. Unfortunately for Bitcoin bulls, it was not the move that they were looking for as it dropped almost 13% on Monday and continued lower Tuesday shedding another 4.8% to trade at the new yearly low of $4,547.00. The cryptocurrency is now down more than 60% year-to-date and more than 70% since its all-time high. Where will it stop? $3000, $2000 or $1000?
Not to be outdone by oil and Bitcoin, stocks are all continuing the sell-off that started Monday with the S&P 500 dropping 1.6%, the DOW is once again below 25k, shedding 2% and the NASDAQ is trading back below 7,000 losing 1.6%. The recent sell-off has once again pushed the stock market back below the yearly open, shedding all of the gains that came with record highs earlier in the year which has driven all three indexes into correction/bear market territory. It's looking more and more like we have a good to chance to end the year lower unless we get the Santa Clause rally.
Key Levels To Watch This Week:
Continue reading "Crude Oil and Bitcoin Hit New Yearly Lows"
Hello traders everywhere. Stocks opened Friday trading higher for the most part but were unable to hang on to those gains as we headed into afternoon trading and after two weeks of gains the major indexes will post big weekly losses. All three indexes are looking at losses of over 2% with the DOW leading the way lower with a -2.6% weekly loss. The NASDAQ is in second place with a loss of -2.5% meanwhile the S&P 500 just checked in with a -2% loss.
For the first time in four weeks, the U.S. dollar will have a weekly loss of -.42%. The move lower came after Federal Reserve Vice Chairman Richard Clarida offered some dovish comments. Clarida told CNBC that central bank's pace of rate hikes wasn't too fast while also saying that the global economy showed signs of slowing. Overall the Chart Analysis Score is +55 with the recent weakness, but it's still on a long-term uptrend.
Crude Oil has stabilized at weeks end ending its historic slide six-week slide finding support at the $55 level. Oil looks to finish the week with three straight days of gains, but it will still post a big weekly loss of -5.2%. The Chart Analysis Score remains low at -90 indicating that the long-term downtrend still has considerable strength.
Much like oil, gold is looking to finish the week on a strong note with four straight days of gains trading back above the $1200 level and is the only instrument that we track that will post a weekly gain standing at +1% gaining back half of the last weeks -2% loss. Even with the recent daily strength, the Chart Analysis Score remains low at -75 telling you that the overall long-term trend is still strong.
Bitcoin suffered its most significant weekly loss in ten weeks standing to lose -12.8%. However, bitcoin has been and remains trapped in a tight trading just below its 50-day MA. The Chart Analysis Score of -90 tells you that the long-term downtrend is gaining strength and could head lower from here.
Key Levels To Watch Next Week:
Continue reading "Stock Market On Pace For Big Weekly Losses"
Hello traders everywhere. What looked to be a promising humpday this morning quickly turned negative as the DOW reversed course. It had been trading over 200 pts higher in early trading but has since fallen over 330 pts trading below 25,000 and losing over 1.3% on the day. The S&P 500 and NASDAQ have followed suit with both indexes losing over 1.2%. It sure looks like volatility is here to stay.
The turn lower coincided with Apple breaking below its 200-day MA trading losing over 2.7% on the day and currently trading at the session low of $186.70 and trading 20% below its 52-week high, entering a bear market. The decline comes after Guggenheim downgraded the stock. This downgrade comes as UBS cut its 12-month price target on the stock and follows a target reduction at Goldman Sachs. Investors have been worried the company's iPhone sales will slow down soon.
The only bright spot in the market is crude oil, which is looking to stop its twelve-day slide trading higher on the day. Oil is up over 1% trading at $56 a barrel, off the session low of $55.13. OPEC and Russia signaled Sunday they could decide at their December 6th meeting to hold back output by around 1 million barrels a day. This announcement came amid signs the market will be oversupplied in 2019.
The International Energy Agency warned in its report Wednesday that global oil supply was on pace to significantly outstrip demand, as Russia, Saudi Arabia, and the U.S. are pumping out crude at record levels.
President Donald Trump sent another warning to producer cartel OPEC (Organization of Petroleum Exporting Countries) earlier this week, saying he hoped the group would not cut output in a move to buoy prices. The fall in crude has also sparked worries of a global economic slowdown.
Key Levels To Watch This Week:
Continue reading "Stocks Lose Early Gains As Tech Declines"
Hello traders everywhere. Overall the stock market was looking to finish out a strong week on a high note, but it was not be. Crude oil had other ideas and decided to spoil the party by doing something that it hasn't done since 1984, that's right, I said 1984. For the first time since 1984 oil will post ten straight losing sessions while suffering a drop of over 20% from the recent high and trading below $60 for the first time since March of this year.
Oil's move lower put a bit of a damper on the week for stocks, but overall the big three indexes will still spot weekly gains with the DOW leading the way with a gain of about +2.5% as I write. The S&P 500 checks in with a weekly gain of +1.6% and NASDAQ will still post an increase of +.30% as we head into the close.
We also woke up to a surprise from gold, a new red weekly Triangle indicating that the intermediate-term trend has resumed its downward move changing the Chart Analysis Score to -100 and pushing gold down with a weekly loss -1.9% trading close to $1,200.00. On the flip slide, the U.S. dollar is still chugging along posting a weekly gain of +.43%. Meanwhile, Bitcoin continues to go nowhere and will post a weak increase of +.10% on for the week.
Key Levels To Watch Next Week:
Continue reading "Crude Oil Drags Down The Stock Market"
Hello traders everywhere. The midterm elections are over, and the stock market is on the move higher. Are we going to get a long-term post-election rally or is this just a short-term bump? The S&P 500 has jumped above its 200-day MA for the first time in eleven days, but we're still waiting on a new green weekly Trade Triangle to exit a short position in the S&P 500.
The DOW broke above its 50-day MA and issued a new green weekly Trade Triangle at 25,817.68 pushing the Chart Analysis Score to +75 indicating that a long position may be in order for the DOW. We'll have to see if there's carry through at the end of the week or if this is just a short-term election euphoria bump.
The NASDAQ is trading just below its 200-day MA standing at 7,519.45 with a Chart Analysis Score of -70. Even if The NASDAQ trades above the 200-day in the coming days it still has some work to do to enter a sidelines position.
On the opposite end of the spectrum, the U.S. dollar is not buying into the post-election hype and traded as low as 95.48 before backing off the session lows. But it is still down on the day and is down .60% on the week. Continue reading "Stocks Rise After Midterm Elections"