ECONOMIC EVENTS & NEWS

Nice bull rally 2 days in a row after major selloff, but wait!

Don’t turn bullish just yet! The U.S markets only rallied because Chinese markets found its first minor support that held through the session. Once the asian markets finally had a day without a selloff, the European markets rallied and held; so the U.S. markets also showed better economic conditions, backed by today’s positive GDP numbers helped us rally also.

 

Link to in depth news for today click here

TRADER THOUGHTS

I personally see a KOD (Kiss of Death) somewhere below the 2040 level on S&P 500.
The markets are going to be experiencing some volatility as long as the VIX indicator is above 22, and we’re completely vulnerable to the movements in the Chinese markets. We created a new range for the S&P 500 between the breakdown of 2040, the current resistance, and 1867, the current support.

That is a wide range.  Note on chart below

1) The range from the lines I drew 2040 to 1867
2) The arrow pointing at the RSI 50 level
3) The arrow pointing at the OBV Moving avg. line

The RSI and OBV points here means that as long they are both below those points, stay bearish and wait for bear entries.

Once the RSI & OBV are above those points, favor the bulls and look for bull entries.

– CLICK ON THIS PIC BELOW TO SEE DETAILED VIEW-

 

 

BIG NOTE**

You’ll notice that as you go through the markets & sectors listed below, you can click on the symbol for the chart and see the RSI & OBV for each one.

Let me save you time: all are bearish. The only one close to being bullish is GOLD & USD (UUP).

Hope this helps; leave comments below if you like this lesson.

Economic Calendar:

Thursday – GDP comes in strong at 3.7% versus est. 3.1%
Friday – Personal Income and Spending

Fedwatch link for rate hike predictions= Sept. 24% chance of raising rates

 

MARKETS
(click on symbol for chart)
SPX –  Bear
DOW–  Bear
Nasd –  Bear
Russ –  Bear

VIX –  13.49 (down .12) but spiked early to 14.33
Archa Hi  vs Low =  Negative; bearish

 

SECTORS – Trend on daily chart (click symbol for chart)

Materials (XLB) – Bear
Energy (XLE) –    Bear- Watch for swing high trigger follow thru here on Friday
Financials (XLF) – Bear 
Industrials (XLI) – Bear
Technology (XLK) – Bear
Staples (XLP) –   bear
Utilities (XLU) –  Bear
Healthcare (XLV) –  Bear
Discretionary (XLY) –  Bear
Mining (XME) –    Bear
Real Estate (IYR) –  Bear
Retail (RTH) –    Bear
Transports (IYT) – Bearish

Oil (USO) – Bear
Ag (DBA) – Bear
GLD –   Bear
SLV –    Neutral to bullish, watch for support to hold on 20 ema to go bullish

WORLD WATCH
VEU – world markets – USA companies – BEAR
EEM – global emerging markets- BEAR 

THE DOLLAR
UUP – USD weighted ETF – Bearish

COACHES TRADING THOUGHTS

China is the focus with the ripple down affect of Chinese Yuan.  To learn more about Chinese currency war, effect click here for our video.

Only reversal indicator showing now is VIX outside bollinger band. When it dips back into the band, it could find bearish retracement to kiss off the 2070 level or so on SPX. Other than that, watch out for followthrough with volatile days ahead. Fed rate increase predictor dropped from over 50% to 25%.  Watch oil looking for a bottom. Markets are down for the year so far. I welcome the VIX volatility; premiums are higher on options, so use them to hedge and set up covered calls against stocks while it’s there.

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