10 Minute Read

Market Recap August 9, 2017

August 9, 2017

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MR

 

MARKET SNAPSHOT
Dow22048.70-36.64(-0.17%)
Nasdaq6352.31-18.13(-0.28%)
SP 5002473.98-0.90(-0.04%)
10-yr Note+5/322.246
NYSEAdv 886Dec 2043Vol 805.9 mln
NasdaqAdv 803Dec 2025Vol 2.03 bln

 

 

IN THE NEWS HIGHLIGHTS:

  • Caution following yesterday’s verbal spat between the U.S. and North Korea.
  • VIX jumps to one-month high, Treasuries rally amid risk-off sentiment.
  • Disney (DIS) drops after missing revenue estimates and announcing an end to its distribution agreement with Netflix(NFLX).
  • Crude oil closes finishes higher EIA shows decrease in supply.
  • US dollar down slightly as it traded most of the day flat.

 

RECAP– The market struggled early, but a later afternoon rally saw it close nearly flat. Crude oil rose on the day and was benefited by the EIA inventory report which showed a larger than expected decrease in supply. The US dollar traded mostly sideways.

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

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


Economic Calendar

Today

  • August 9: Crude Oil Inventories – Actual: -6.5M  Forecast: -2.6M Previous: -1.5M

 

Upcoming Reports

  • 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 9: 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.
  • A late afternoon rally helped the market shrug off a sluggish day.

 


A Look Into the Heat Map

The market was mixed and difficult to pick out a trend. There has been some strength in Basic Materials as well as Healthcare.

 

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

VIX – 11.11

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:

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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