11 Minute Read

Market Recap August 7, 2017

August 7, 2017

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MR

 

MARKET SNAPSHOT
Dow22118.42+25.61(0.12%)
Nasdaq6383.75+32.21(0.51%)
SP 5002480.87+4.08(0.16%)
10-yr Note+3/322.255
NYSEAdv 1398Dec 1511Vol 743.9 mln
NasdaqAdv 1534Dec 1345Vol 1.69 bln

 

 

IN THE NEWS HIGHLIGHTS:

  • Investors lack conviction as stocks hover near all-time highs.
  • Top-weighted technology sector outperforms amid broad strength.
  • Crude oil lower ahead of two-day OPEC/non-OPEC compliance meeting.
  • US dollar stabilizes at 93.

 

RECAP– The market closed slightly higher (with the Dow putting in another high) following a very choppy day of trading with low volume. Crude oil slipped a little further ahead of upcoming OPEC meetings. The US dollar traded mostly sideways as it stabilized following a long bearish run.

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

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


Economic Calendar

Today

  • Nothing major today.

 

Upcoming Reports

  • August 8: JOLTS Job Openings
  • August 9: Crude Oil Inventories
  • August 10: PPI m/m
  • August 10: Unemployment Claims
  • August 11: CPI m/m
  • August 11: Core CPI m/m

 

FedWatch September 20 Rate Hike Probability for August 7: 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 has been consolidating for much of the past two weeks following a two week bullish run.
  • Resistance is holding steady at around the 2480 range. A steady decrease in volume at this level usually indicates a lack of conviction among institutional traders to commit and break resistance.
  • Be mindful of seasonality and respect resistance at this level. In the past, we have usually seen a major correction come in the end of the summer or early autumn.

 


A Look Into the Heat Map

The market lifted today by some large-cap Technology companies and Consumer Goods.

 

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

VIX – 9.93

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

We saw a very optimistic jobs report on Friday as well as last month’s figure being revised upward by 9K. That should help add a little extra momentum to current market conditions which is exhibiting a slight bullish bias. We are coming toward the end of summer, which is usually characterized by a lack of volatility and sideways movement. A shift in seasonality usually sees a correction either very late in the summer or early autumn.

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:

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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