MR
MARKET SNAPSHOT
Dow 19881.89 +119.16 (0.60%)
Nasdaq 5429.08 +45.97 (0.85%)
SP 500 2257.83 +19.00 (0.85%)
10-yr Note -1/32 2.448
NYSE Adv 2303 Dec 709 Vol 1.20 bln
Nasdaq Adv 2061 Dec 1061 Vol 1.71 bln

 

IN THE NEWS HIGHLIGHTS:

  • Global markets start the New Year on a bullish note.
  • Crude oil plunges as it surrenders its overnight gain.
  • U.S. Dollar Index continues to climb.

 

RECAP– The market gapped higher following last night’s futures open and continued to rally immediately following the open. It wasn’t until the late morning that the market began to selloff wiping out most of its gains. A strong rally late in the afternoon heading into the close did see the market lock in some gains in the first day of the year. Crude oil also saw a lot of volatility as it rallied during the early morning hours during European trading but ended up plunging following the US open causing it to take a significant loss. The US dollar also traded similar to the equities market gapping up from the open and finishing the day higher. Despite the strength in the dollar, gold and silver also recorded bullish days.

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

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


Economic Calendar

Today

  • January 3: ISM Manufacturing – Actual: 54.7  Forecast: 53.7  Previous: 53.2
    • A leading indicator that tracks the health of the manufacturing industry. A figure above 50 is a sign of expansion.

 

Upcoming Reports

  • January 4: FOMC Meeting Minutes
  • January 5: ADP Non-Farm Employment Change
  • January 5: Unemployment Claims
  • January 5: ISM Non-Manufacturing PMI
  • January 5: Crude Oil Inventories
  • January 6: Average Hourly Earnings m/m
  • January 6: Non-Farm Employment Change
  • January 6: Unemployment Rate

 

FedWatch February 1 Rate Hike Probability for January 3: 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 below its moving average.
  • Bullish momentum has stalled and swinging in the opposite direction.
  • The price action is in a tug of war between the bulls and the bears. The market gapped higher following the weekend open, but gave up a significant amount of ground from its intraday high.
  • Today’s strong close is and indication that momentum could continue into the morning

 


A Look Into the Heat Map

The market was bullish today with Utilities and REIT‘s being the underperformers.

MARKETS

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

VIX – 12.88

 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

This is going to shape up to be a pretty busy week as far as economic news. There are many new reports that will be coming out which include FOMC meeting minutes, new jobless claims, as well as ADP and BLS employment change reports among others. This is as institutional traders are reentering the markets and volume will be picking up significantly. We did see more volatility across the board in all markets as equities, currencies, and commodities saw large intraday movements. It is still too early to pick out trends as they are not well defined yet.

Best of luck and let’s get this New Year off to a great start!


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