The Morning Market Report is part of your 7 Step Process to Successful Trading by:
- helping you start at the top of the markets,
- choosing a trading strategy, and
- finding and analyzing potential trades.
This report focuses on short-term swings in the market (especially overnight futures movements) that can help you best begin you trading morning. In this daily report, you’ll receive:
- a summary of major market news,
- the list of that day’s economic calendar,
- information regarding the major markets indexes,
- industry sector performance,
- major commodities,
- world currencies. and
- links to useful sites and/or stories.
So don’t start trading uninformed; add the Morning Market Report to your daily routine.
- Definitions of Economic Reports – If you don’t understand any of the economic reports listed click here.
- Click on report links below to see the results of the economic data during the day
- Things to watch for this morning: Today we have the PPI-FD which gives us an inflation reading, and Redbook which gives us retail sales information, both occur before the market opens. There is nothing else on the economic calendar for the rest of the day that could affect the markets.
- 3:05 AM ET – Charles Evans Speaks
- 5:00 AM ET – Janet Yellen Speaks
- 6:00 AM ET – NFIB Small Business Optimism Index
- 8:15 AM ET – James Bullard Speaks
- 8:30 AM ET – PPI-FD (see below)
- 8:55 AM ET – Redbook
- U.S. producer prices increase more than expected in October – The Labor Department said its producer price index for final demand increased 0.4 percent last month after a similar gain in September. In the 12 months through October, the PPI jumped 2.8 percent, which was the largest increase since February 2012. Read More…
- China’s economy cooled further last month – Global stock markets put in a subdued performance, as Chinese economic data disappointed, that along with pessimism over the state of play on U.S. tax cuts helped drag markets down from record highs reached late last week. Read More…
- Euro Zone Economy Continues to Expand faster than the US – The euro zone economy maintained its solid pace of expansion in the third quarter, keeping it on track for its best annual performance in a decade. Read More…
Major Index Futures
- Market Overview – On Monday the S&P 500, Nasdaq composite and Dow Jones industrial average all ended with gains of around 0.1%. Small caps lagged slightly, with the Russell 2000 ending with a fractional loss. The small-cap index is clinging to the 50-day moving average, while the other major indexes are hugging the 20-day MA. Nasdaq and NYSE volume fell slightly from Friday’s levels.
- S&P 500 – 2,575 -bullish, above the 50-day moving average, support at 2550
- Dow 30 – 23,355 – bullish, above its 50-day moving average, resistance at 23,500
- Nasdaq 100 – 6,305 – bullish, above its 50-day moving average, resistance at 6500
- SmallCap 2000– 1470 – sideways consolidation – the Rut holding above the 50-MA this could be a bullish signal
- S&P 500 VIX – 11.67 – as investors get worried about the market the VIX starts to rise, and we can sell options and get better premiums but yesterday’s spike to 12 is not a spike, 12 is still relatively low.
- Charts Below are 2-Month Daily
- Gold – $1272 – sideways volatile to slightly bearish (below the 50 MA) resistance at 1300 (if you are bullish then this might be when you start to load up on gold, otherwise you could wait for confirmation to the upside)
- Silver -16.944 – sideways volatile to slightly bearish (just below the 50 MA) resistance at 17.00
- Crude Oil – $56.48– bullish, Crude is forming a base (or you can call it a flag) within a bullish trend
- Natural Gas – $3.096– bullish above the 50 MA, NG is rising as the winter months set in and consumption increases
- Charts Below are 2-Month Daily
- Bearish Sectors – Healthcare (XLV) is the only sector that is still below the 50-MA.
- Bullish Sectors – Most of the other sectors are very bullish especially Technology (XLK), Energy (XLE), Real Estate (XLRE) and Utilities (XLU).
- Neutral Sector – Industrials (XLI) and Financials (XLF) and Consumer Discretionary (XLP) have not done very much in the last month.
- The charts below show how the sectors did yesterday and the 5-day sector performance.
- The chart below shows the last 20 days of sector performance
- 2-month charts
- I have added some key industries to the 2-month charts below – retail (XRT) has been weak but we are going into shopping season so watch for a turn-around. Semiconductors (SMH) and ITB Home Construction is looking really good. Finally, XOP looks like a textbook bullish retracement.
- To get a live view of the curve and see an animation of how it has performed over the last 20 years click here.
- To learn what the dynamic yield curve click on the title above labeled “Dynamic Yield Curve”
- This chart is an important indicator to watch. watch for a flat or inverted yield curve as a potential early indicator of a market correction.
- The dynamic yield curve is still looking fine with the short-term rates below the long-term rates.
- USD – $94.02 – sideways to within slightly bullish trend – resistance at 95
- The Charts Below are 3-Month Daily
- Cryptocurrency 1-month Charts
- Bitcoin – bullish
- Ethereum – volatile sideways
- Litecoin – volatile sideways
- To learn how the use the Tackle trading list: click on the title above “Tackle Trading 25”
- Trading Thoughts on the Tackle Trading 25 – we are almost out of earning (if you see a blue “?” click on it and get the earning date)
- For Bullish Trends – Naked Puts, Covered Calls, and for stocks over $100 Bull Put Spreads
- For Neutral Trends – Iron Condors are great for stagnant stocks
- For Bearish Trends – Bear Call Spreads (be careful with overly aggressive directional trades like Shorting or buying Puts)
- Notice in our tackle 25 chart below that I have BTE (a new script that should let us know when earning is near) as well as ImpVolatility (that will let us know which options will sell for the best premium), and IV Rank (that will guide you in your Vega strategy plays).
- 0 (neutral ) Market Bias – Index futures point to a slightly lower opening this morning, but positive economic data along with strong earnings from some key stocks like Caterpillar (CAT), Advanced Auto Parts (AAP), International Game Technology (IGT), Aercap Holdings (AER), Home Depot (HD) and Buffalo Wings (BWLD) might motivate the market, so my bias is neutral for today.
- Wishing you the best of luck in your trades and in life 🙂
Bearish Neutral Bullish
-3 -2 -1 0 +1 +2 +3
You can follow daily trade adjustments and updates on Twitter, Facebook, or text “follow @tackletrading” to 40404 to get text alerts!
If you are not a Pro Member and following the Stock & Option Picks, then check it out! There is a Promo code for Free 15 day trial: THETA
Hector Duenas Jr. started his trading journey during the height of the tech bubble in 2001 as part of the 90% that loses money in the stock market.
A Rich Dad conference in 2016 changed his life and now he writes the Morning Market Reports, the Market Scoreboard, blogs, and appearances on the Coaches Show and the Cashflow Club for Tackle Trading. Hector specializes in cash-flow strategies such as Covered Calls on the Tackle 25 Watchlist, the Personal Gold System, Cashflow Condors, and speculating on Futures.
– – – – – – —
Tackle Trading LLC is providing this site and any related materials (including newsletters, blog post, videos, social media and other communications) for educational purposes only. We are not providing legal, accounting, or financial advisory services, and this is not a solicitation or recommendation to buy or sell any stocks, options, or other financial instruments or investments. Examples that address specific assets, stocks, options or other financial instrument transactions are for illustrative purposes only and may not represent specific trades or transactions that we have conducted. In fact, we may use examples that are different or the opposite of transactions we have conducted or positions we hold. This site and any information or training therein is also not intended as a solicitation for any future relationship, business or otherwise between the members or participants and the moderators. No express or implied warranties are being made with respect to these services and products.
All investing and trading in the securities market involves risk. Any decisions to place trades in the financial markets, including trading in stock or options or other financial instruments, is a personal decision that should only be made after thorough research, including a personal risk and financial assessment, and the engagement of professional assistance to the extend you believe necessary.
Finance, Stocks, Market, Stock Market, Options, Trading, Tackle Trading, Stock Market Today, Stock Market News, Market Recap, Market Review, Forex, Commodities, S&P 500, Dow Jones, DJIA, Trading Videos, Active Trading, Active Traders, Day Trading