10 Minute Read

Market Recap August 29, 2017

August 29, 2017

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MR

 

MARKET SNAPSHOT
Dow21866.67+56.97(0.26%)
Nasdaq6301.87+18.87(0.30%)
SP 5002447.75+2.06(0.08%)
10-yr Note+10/322.123
NYSEAdv 1408Dec 1496Vol 680.7 mln
NasdaqAdv 1435Dec 1355Vol 1.6 bln

 

 

IN THE NEWS HIGHLIGHTS:

  • North Korea launches a missile over Japan; President Trump says “[a]ll options are on the table” in response.
  • Financial sector underperforms while technology and industrials sectors show relative strength.
  • Crude oil continues to sell.
  • US dollar recovers from early loss.

 

RECAP– The markets gapped lower last night but ended up rallying for most of the day to close slightly higher. Crude oil continued to sell off today and briefly dipped under $46. The US dollar sold off early due to geopolitical turmoil, but spent the rest of the day recovering and closing slightly higher. After breaking above $1,300 yesterday, gold sold off a little coming back down to Earth.

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

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


Economic Calendar

Today

  • August 29: CB Consumer Confidence – Actual: 122.9 Forecast: 120.9 Previous: 120.0
    • Consumer confidence remains high which is an indicator that consumer spending should remain consistent.

 

Upcoming Reports

  • August 30: ADP Non-Farm Employment Change
  • August 30:  Prelim GDP q/q
  • August 30:  Crude Oil Inventories
  • August 31:  Unemployment Claims
  • September 1:  Average Hourly Earnings m/m
  • September 1:  Non-Farm Employment Change
  • September 1:  Unemployment Rate
  • September 1:  ISM Manufacturing PMI

 

FedWatch September 20 Rate Hike Probability for August 29: 1.4% (View the probability chart here)


A Look At The S&P 500 Chart – KEY Levels

  • RSI is at 50.
  • On Balance Volume is below its moving average.
  • The market gapped lower following yesterday’s news due to geopolitical concerns. It returned back to normal following the opening bell and recovered its early loss.

 


A Look Into the Heat Map

The market closed slightly higher today and was mainly led by Technology and Industrials.

 

(click on symbol for chart)
SPX – Neutral
DOWNeutral
NasdaqNeutral
Russell Neutral

VIX – 11.67

COMMODITIES

Oil (USO)Bullish – Crude oil is retracing following its previous rally as it has hit resistance of $50. A break under $46 could signify a reversal of trend.
Ag (DBA)Bearish
GLD Bullish – Gold has been on a recent rally. It is currently consolidating below $1,300. Expect a pullback before it breaks through that resistance level.
SLVBearish

THE DOLLAR

UUP USD weighted ETF – Bearish

 


SOLON’S TRADING THOUGHTS

There is plenty of economic data to come out this week, including jobs numbers. As we saw from the previous several weeks, volatility is beginning to reenter the market and significant selloffs are becoming more common. The Trump honeymoon looks to be over, and such things such as poor economic data and geopolitical concerns will likely carry a greater impact in affecting the stock market, especially considering its current frothy valuations.

Seeing how easily the market is beginning to scare with the increased tensions with North Korea, it would be wise to protect your portfolio with buying puts. We’ve recently seen several selloffs which cause volatility to surge, which would make it wise to buy puts while they are cheap.


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