|NYSE||Adv 2136||Dec 761||Vol 941.7 mln|
|Nasdaq||Adv 1907||Dec 909||Vol 1.87 bln|
IN THE NEWS HIGHLIGHTS:
- Rate-hike expectations remain subdued following a tepid increase in the core PCE Price Index for the month of July (+0.1%).
- Health care sector rallies once again after closing above its 50-day simple moving average for the first time in three weeks on Wednesday.
- Heavily-weighted financial sector underperforms, keeps broader market’s gain in check.
- Crude oil bounces off $46 support; closes above $47.
- US dollar gives up yesterday’s gains.
RECAP– The markets continued to rally higher today creating a new short term uptrend. Crude oil which pressed against its $46 support yesterday bounced right off and finished above $47. The US dollar lost steam and gave up some of its gains from the prior day.
In-depth look of daily news at Briefing.com (CLICK HERE)
In-depth look at after hours movers (CLICK HERE)
- August 31: Unemployment Claims – Actual: 236K Forecast: 237K Previous: 235K
- New unemployment claims came in at expectations which remain relatively low.
- 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 31: 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 was in a short term downtrend which could be interpreted as a retracement. The price action of the past three days broke that trend and created a new short term bull rally.
A Look Into the Heat Map
The market finished higher again thanks to Technology and Healthcare companies.
VIX – 10.59
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
SLV – Bearish
UUP – USD weighted ETF – Bearish
SOLON’S TRADING THOUGHTS
The market is rallying heading into a 3-day holiday weekend. Use this as a chance to do two things. First load up on theta positive trades to take advantage of a free day of theta decay. Second, use the uptrend and decrease in volatility to load up on puts as a hedge. We have seen the market selloff much easier in the past month with volatility spiking at a moment’s notice. The summer lull is over, and the fall is traditionally when a lot more selloffs tend to occur. With geopolitical tensions with North Korea as well as domestic political tensions and a potential government shutdown, there are plenty of catalysts that could cause a selloff out of the blue. It would be better to be prepared beforehand.
You can follow daily 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
Tackle Trading LLC (“Tackle Trading”) is providing this website and any related materials, including newsletters, blog posts, videos, social media postings and any other communications (collectively, the “Materials”) on an “as-is” basis. This means that although Tackle Trading strives to make the information accurate, thorough and current, neither Tackle Trading nor the author(s) of the Materials or the moderators guarantee or warrant the Materials or accept liability for any damage, loss or expense arising from the use of the Materials, whether based in tort, contract, or otherwise. Tackle Trading is providing the Materials 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 are not intended to represent specific trades or transactions that we have conducted. In fact, for the purpose of illustration, we may use examples that are different from or contrary to transactions we have conducted or positions we hold. Furthermore, this website and any information or training herein are not intended as a solicitation for any future relationship, business or otherwise, between the users and the moderators. No express or implied warranties are being made with respect to these services and products. By using the Materials, each user agrees to indemnify and hold Tackle Trading harmless from all losses, expenses and costs, including reasonable attorneys’ fees, arising out of or resulting from user’s use of the Materials. In no event shall Tackle Trading or the author(s) or moderators be liable for any direct, special, consequential or incidental damages arising out of or related to the Materials. If this limitation on damages is not enforceable in some states, the total amount of Tackle Trading’s liability to the user or others shall not exceed the amount paid by the user for such Materials.
All investing and trading in the securities market involves a high degree of risk. Any decisions to place trades in the financial markets, including trading in stocks, options or other financial instruments, is a personal decision that should only be made after conducting thorough independent research, including a personal risk and financial assessment, and prior consultation with the user’s investment, legal, tax and accounting advisers, to determine whether such trading or investment is appropriate for that user.