ECONOMIC EVENTS & NEWS
Volatility disappeared the last couple days mainly because of a Chinese holiday for Thursday & Friday, so their market is closed.
Markets is mixed; basically flat.
Dow & S&P 500 up barely.
Nasdaq down about .35%.
Russell flat.
It’s worth noting that there were more advancing stocks versus declining & volume was to the low side versus the average. European central bank sets the tone for a positive first hour by making no changes to its monetary policy & ECB President Draghi hints to quantitative easing to be extended.

The Econ Calendar:

Thursday – Jobless claims came in a bit higher than expected, but all eyes and ears are awaiting the NFP Friday before the open.

FRIDAY –  Non-Farm payroll report. The Unemployment Report. This is the first Friday of every month and it creates volatility for the open.

Market Closed Monday for USA Holiday.

Link to in depth news for today click here

TRADER THOUGHTS

I personally see a KOD (Kiss of Death) and a lot of overhead resistance somewhere below the 2040 level on S&P 500. We currently have a doji (reversal candle) hitting its head on the 10 day EMA.
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.

Expecting market volatility, but starting to see countries stepping in with stimulus & support to calm it down. I’m careful with trigger orders and using smaller position sizes since gaps at the open are common in this volatile arena, and option prices fluffed up with wide bid/ask spreads. Take profits quickly and plan the trade. Waiting for gold (GLD) to make a move to the upside in confirmation to this global crisis. Not seing it yet.

Fedwatch link for rate hike predictions= Sept. 27% chance of raising rates

 

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

VIX –  25 (and a doji on the 20 ema)

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

Materials (XLB) – Bear
Energy (XLE) –    Bear- 
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) – Just turned Neutral, ( watching for support above the 20 ema)
Ag (DBA) – Bear
GLD –   Neutral
SLV –    Neutral 

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

THE DOLLAR
UUP – USD weighted ETF – Neutral

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.

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