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Market Recap January 11, 2017

January 11, 2017

By

MR
MARKET SNAPSHOT
Dow19954.41+98.75(0.50%)
Nasdaq5563.64+11.83(0.21%)
SP 5002275.32+6.42(0.28%)
10-yr Note+3/322.365
NYSEAdv 2029Dec 919Vol 1.06 bln
NasdaqAdv 1679Dec 1377Vol 1.77 bln

IN THE NEWS HIGHLIGHTS:

  • Global equities rally with China as the lone decliner.
  • Health care falls after President-elect Trump shares his desire to bring back pharmaceutical operations to the U.S.
  • Airlines outperform after upbeat December traffic data from American Airlines (AAL) and United Continental (UAL).
  • Crude oil rises despite excess supply in EIA inventories report snapping 2-day losing streak.
  • U.S. Dollar Index finishes lower.

 

RECAP– After a volatile, roller-coaster of a day the market ended the day with a strong rally to finish moderately higher. Crude oil rallied on the day despite the EIA inventory report indicating an excess in supply higher than expectations which ended a strong 2-day losing streak. The US dollar also saw significant volatility today, ultimately finishing lower which gave a boost to gold.

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

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


Economic Calendar

Today

  • January 11: Crude Oil Inventories – Actual: 4.1M  Forecast: 0.9M Previous: -7.1M
    • The JOLTS Job openings number is the official figure for the number of jobs that are looking to be filled (excluding farming). It is more important to keep track of this figure as job growth has been slow as it gives us an indication of what the future of the labor market holds. Last month’s figure was revised down by 80K which caused this month’s figure to miss its forecast.

 

Upcoming Reports

  • January 12: Unemployment Claims
  • January 12: Fed Chair Yellen Speaks
  • January 12: Core Retail Sales m/m
  • January 12: PPI m/m
  • January 12: Retail Sales m/m
  • January 12: Prelim UoM Consumer Sentiment

 

FedWatch February 1 Rate Hike Probability for January 11: 2.0%  (View the probability chart here)


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

  • RSI is above 50.
  • On Balance Volume is at its moving average.
  • Today’s intraday market action saw a lot of volatility. The strong rally that began just before 2pm ran right into the 4pm close. Closes that are that strong usually carry the momentum to the beginning of the next day.

 


A Look Into the Heat Map

The market showed bullishness throughout most of the sectors. Healthcare was the only sector that was bearish today due to comments made by President-Elect Donald Trump.

MARKETS

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

VIX – 11.21

 COMMODITIES

Oil (USO) –  Bullish 
Ag (DBA) – Bearish
GLD –  Bearish – Gold has been in a “relief rally” following months of constant selling. It should continue to fade higher as the US dollar retracements. By no means am I bullish on Gold or Silver as they are still in a long term bearish trend and this is more of a temporary retracement. I would like to see a bottoming pattern before changing my bias.
SLV –  Bearish – Same as gold.

THE DOLLAR

UUP USD weighted ETF –  Bullish – The bullish momentum has slowed in the US Dollar and has been consolidating in this area.

 


SOLON’S TRADING THOUGHTS

The market has been trading with very little volatility or movement (from a longer term perspective) as of late. The VIX has been steadily dropping while price action has been consolidating at its high. It looks like the market is waiting for some stimulus before making a new trend. Also note that tomorrow looks to be a big day with a lot of new economic data coming out.


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4 Replies to “Market Recap January 11, 2017”

  1. Bill Trimborn Bill Trimborn says:

    Thanks, Solon!

  2. ThomasFlohr says:

    Thank You Solon !

  3. SYLVIATREVINO says:

    Thanks for the RECAP.

  4. TerenceWagler says:

    Thanks for your input!!!

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