11 Minute Read

Market Recap January 5, 2016

January 5, 2017

By

MR
MARKET SNAPSHOT
Dow19899.42-42.87(-0.21%)
Nasdaq5487.93+10.93(0.20%)
SP 5002269.00-1.75(-0.08%)
10-yr Note+26/322.347
NYSEAdv 1292Dec 1638Vol 1.14 bln
NasdaqAdv 1289Dec 1779Vol 1.62 bln

 

IN THE NEWS HIGHLIGHTS:

  • High correlation today with US equities and crude oil.
  • Gold and silver see continued relief.
  • Retailers under pressure after cautious guidance from Kohl’s (KSS) and Macy’s (M).
  • Crude oil sold off sharply following the EIA report.
  • U.S. Dollar Index plummets for a second day in a row for a significant loss.

 

RECAP– The market took its queue from oil today as the two markets were highly correlated. Both charts at an intraday time frame were identical. Crude oil sold off sharply following the EIA inventory report despite a larger than expected decrease in supply. It then spent the rest of the day trying to recover its losses. The US dollar continued to drop significantly today which allowed gold and silver to finish higher.

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

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


Economic Calendar

Today

  • January 5: ADP Non-Farm Employment Change –  Actual: 153K  Forecast: 171K  Previous: 215K
    • This was a weak payrolls report. The important jobs report is the BLS report that come out tomorrow, but the ADP payrolls report is usually a good precursor.
  • January 5: Unemployment Claims –  Actual: 235K  Forecast: 262K  Previous: 263K
    • Unemployment claims came in significantly lower than expected which help offsets a disappointing payrolls report.
  • January 5: ISM Non-Manufacturing PMI –  Actual: 57.2  Forecast: 56.6  Previous: 57.2
    • Non-manufacturing PMI exceeded expactations. A number above 50 indicates industry growth.
  • January 5: Crude Oil Inventories –  Actual: -7.1M  Forecast: -1.8M  Previous: 0.6M
    • Despite inventories coming in significantly lower than expectations, crude oil sold off sharply and tried to recover for the rest of the day.

 

Upcoming Reports

  • January 6: Average Hourly Earnings m/m
  • January 6: Non-Farm Employment Change
  • January 6: Unemployment Rate

 

FedWatch February 1 Rate Hike Probability for January 5: 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 above its moving average.
  • Today’s selloff that came after 11:00 AM was due to the announcement of crude oil inventories. Just like crude oil, the market then spent the rest of the day rallying to finish slightly lower.

 


A Look Into the Heat Map

The market was mixed today and slightly bearish. The weakest sector was Financials which dragged the market lower.

MARKETS

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

VIX – 11.67

 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 US dollar saw significant selling for two days in a row which signals a retracement is being put in. The momentum is still strong, but support could be put in anywhere from 100-101.

 


SOLON’S TRADING THOUGHTS

The market was highly correlated with oil today and the charts were mirrors of each other. It was believed that the market wouldn’t move much in anticipation for tomorrow’s Bureau of Labor Statistics employment report. Tomorrow’s economic reports are highly anticipated as is President-Elect Trump’s reaction to them. We did however see minor trend in the US dollar, gold, and silver which are all retracing from their longer trends.


You can follow daily trade adjustments and 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


Legal Disclaimer

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.

 

 

2 Replies to “Market Recap January 5, 2016”

  1. Bill Trimborn Bill Trimborn says:

    Thanks, Solon!

  2. ThomasFlohr says:

    Thank You Solon !

Leave a Reply

Chart Modal