10 Minute Read

Market Recap August 3, 2017

August 3, 2017

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MR

 

MARKET SNAPSHOT
Dow22026.10+9.86(0.04%)
Nasdaq6340.32-22.30(-0.35%)
SP 5002472.12-5.41(-0.22%)
10-yr Note+13/322.223
NYSEAdv 1220Dec 1684Vol 836.0 mln
NasdaqAdv 1257Dec 1560Vol +2.1 bln

 

IN THE NEWS HIGHLIGHTS:

  • Energy sector underperforms, declines by more than 1.0%.
  • Kellogg (K) and Clorox (CLX) rally following earnings, help lift consumer staples sector.
  • Treasuries move higher after Bank of England keeps interest rates unchanged.
  • Crude oil bounces off resistance.
  • US dollar flat.

 

RECAP– The market closed slightly lower following a very choppy day of trading. Crude oil slipped after hitting resistance of $50. The US dollar ended the day flat.

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

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


Economic Calendar

Today

  • August 3: Unemployment Claims – Actual: 240K  Forecast: 242K  Previous: 245K 
    • New unemployment claims came in right in line with expectations which remain very low.
  • August 3: ISM Non-Manufacturing PMI – Actual: 53.9  Forecast: 56.9  Previous: 57.4  
    • Non-manufacturing growth slowed and came in lower below expectations.

 

Upcoming Reports

  • August 4: Average Hourly Earnings m/m
  • August 4: Non-Farm Employment Change
  • August 4: Unemployment Rate

 

FedWatch September 20 Rate Hike Probability for August 3: 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 below its moving average.
  • The market’s momentum has stall following its July rally. Resistance is being put around the 2480 area which looks difficult to break.

 


A Look Into the Heat Map

The market was mixed with Industrials and Utilities leading the way.

 

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

VIX – 10.44

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 is currently at resistance following a turbulent week where resistance was tested multiple times. This will be a big week of economic data as multiple reports will be released, including jobs data.

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. The following companies are reporting earnings over the next several days:

With the VIX closing at 10, this continues to be an opportune time to buy protective puts on a portfolio as a hedge during the summer lull before they go up in price again. The summer is usually characterized by flat trading before a selloff just before or in the beginning of Fall. Be mindful of seasonality. We usually tend to see a sharp selloff in late summer or early autumn.


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