MR
MARKET SNAPSHOT
Dow 19827.14 -6.67 (-0.03%)
Nasdaq 5428.58 -9.97 (-0.18%)
SP 500 2249.30 -0.62 (-0.03%)
10-yr Note +9/32 2.477%
NYSE Adv 1651 Dec 1255 Vol 368.57 mln
Nasdaq Adv 1316 Dec 1515 Vol 1002.89 mln

IN THE NEWS HIGHLIGHTS:

  • Continued low volume in the markets.
  • Crude oil trades lower following EIA inventory report.
  • U.S. Dollar Index plunges on the day giving up yesterday’s gains.

 

RECAP– The market sold off early on, continuing yesterday’s trend. It then rallied in the afternoon making up for most of its losses and closing slightly lower. Crude oil sold off following a surplus in supply reported in today’s EIA inventory report. The US Dollar saw significant selling today which gave a boost to precious metals (ie. gold and silver) which are still recovering.

In-depth look of daily news at Briefing.com (CLICK HERE)

In-depth look at after hours movers (CLICK HERE)


Economic Calendar

Today

  • December 29: Unemployment Claims – Actual: 265K  Forecast: 277K  Previous: 275K
    • The final unemployment claims report of the year was a positive one coming in 10K lower than expected and remaining at historic lows.
  • December 29: Crude Oil Inventories – Actual: 0.6M  Forecast: -1.3M  Previous: 2.3M
    • Crude oil supplies came in higher than expected causing oil to sharply selloff following the report.

 

Upcoming Reports

  • Nothing major for the rest of the week.

 

FedWatch February 1 Rate Hike Probability for December 29: 4.0%  (View the probability chart here)


A Look At The S&P 500 Chart – KEY Levels

  • RSI is above 50.
  • On Balance Volume is above its moving average.
  • Bullish momentum has stalled and swinging in the opposite direction.
  • Today’s price action bounced off the 20 EMA.
  • The 10 EMA has “hooked down” which is an indication of bearishness.
  • If market sells off, the next level of support is around the 2210 area.

 


A Look Into the Heat Map

The market was mixed today with Utilities and REIT‘s being the best performers.

MARKETS

(click on symbol for chart)
SPX –  Bullish
DOWBullish 
Nasdaq Bullish  
Russell  Bullish  

VIX – 13.40

 COMMODITIES

Oil (USO) –  Bullish 
Ag (DBA) – Bearish
GLD –  Bearish – Gold is seeing some relief following a brutal bearish run.
SLV –  Bearish – Same as gold.

THE DOLLAR

UUP USD weighted ETF –  Bullish

 


SOLON’S TRADING THOUGHTS

It is looking like bullish momentum has gone from the market and early signs of a reversal are setting in. This will likely wait until after New Year’s Day and more market participants reenter. This is also a good place to take profit. One other trend that I’ve noticed is that even though we haven’t seen a significant enough of a selloff, the VIX has been steadily rising this week. A good example would be a day like today which ended virtually flat yet the VIX picked up significantly. This trend is likely to continue in January. The best time to have bought protective puts on a portfolio would’ve been last week, but the next best time would be now as the VIX is still relatively low. 

It’s been fun writing these Market Recaps this past year and I would like to wish everyone continued success in trading and other areas of life in the new year. Happy New Year!


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