10 Minute Read

Market Recap August 10, 2017

August 10, 2017

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MR

 

MARKET SNAPSHOT
Dow21844.01-204.69(-0.93%)
Nasdaq6216.85-135.46(-2.13%)
SP 5002438.17-35.81(-1.45%)
10-yr Note+10/322.205
NYSEAdv 398Dec 2613Vol 859.0 mln
NasdaqAdv 630Dec 2129Vol 

 

IN THE NEWS HIGHLIGHTS:

  • U.S.-North Korea tension continues to weigh on sentiment.
  • Top-weighted technology sector leads the broader market lower.
  • July Core PPI cooler than expected (-0.1% actual vs +0.2% Briefing.com consensus).
  • Crude oil sells off significantly.
  • US dollar down slightly after trading higher early.

 

RECAP– The market sold off today thanks to increasing tensions and threat from North Korea. Crude oil sold off on the day as the bump from the EIA report was short-lived. The US dollar gave up early gains to close slightly lower while gold served as a safe haven for investors.

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

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


Economic Calendar

Today

  • August 10: PPI m/m – Actual: -0.1%  Forecast: 0.1% Previous: 0.1%
    • The cost to produce goods actually decreased which is a sign of deflation instead of inflation as rising costs are usually passed on to consumers.
  • August 10: Unemployment Claims – Actual: 244K  Forecast: 240K Previous: 241K

 

Upcoming Reports

  • August 11: CPI m/m
  • August 11: Core CPI m/m

 

FedWatch September 20 Rate Hike Probability for August 10: 1.4% (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.
  • The market sold off heavily today. With such a bearish candle, momentum may very well carry over to tomorrow.
  • The market is dropping into a significant level of support. 2440 is the first level, which looks likely to be violated. Then 2420 looks to be the next level in that range which should serve as support.

 


A Look Into the Heat Map

The market saw a bloodbath today while Utilities was the only safe sector.

 

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

VIX – 15.75

COMMODITIES

Oil (USO)Bullish – Oil completed a bullish reversal and hit our target of $50. At this area, $50 may prove to be a strong area of resistance and the upper end of a trading range.
Ag (DBA)Bearish
GLD Bullish
SLVBearish

THE DOLLAR

UUP USD weighted ETF – Bearish – The US dollar has been on a bear run. We’re waiting for support to be put in as this run has been very significantWith the dollar breaking under 93, look for 92 to be the next level that support can potentially be formed.

 


SOLON’S TRADING THOUGHTS

The market saw its first significant bearish day of the summer. This is a sign of volatility re-entering in the market. It is also a sign that the seasonality of the market is shifting. It will be interesting to see if the tensions (war) with Korea leads to a correction or a bear market.

This is a great time to break out some of your favorite earnings plays and at the very least practice in a paper account. Make sure to be mindful of the earnings date prior to placing a trade. We are coming toward the end of earnings season and have a few opportunities for earnings trades left. The following companies are reporting earnings over the next several days:

Volatility has started to pick in the the past few days while the market has been battling resistance. The VIX being outside of its Bollinger Band has been uncharacteristic.


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