|NYSE||Adv 1291||Dec 1622||Vol 821.0 mln|
|Nasdaq||Adv 1481||Dec 1317||Vol 1.72 bln|
IN THE NEWS HIGHLIGHTS:
- Caution ahead of mega-cap tech earnings, FOMC meeting, Q2 GDP reading.
- Top-weighted technology & financial sectors exhibit relative strength.
- Crude oil up after Saudi Arabia pledges to cut crude exports; Nigeria will limit production.
- US dollar sees some relief after recent bear run.
RECAP– The markets were mixed today with the Nasdaq closing higher on the back of large-cap tech companies while the Dow and S&P struggled. Crude oil rose on the perception of future production cuts by several OPEC nations. The US dollar bounced back today in recovery of a strong bearish run.
In-depth look of daily news at Briefing.com (CLICK HERE)
In-depth look at after hours movers (CLICK HERE)
- Nothing major today.
- July 25: CB Consumer Confidence
- July 26: Crude Oil Inventories
- July 26: FOMC Statement
- July 26: Federal Funds Rate
- July 27: Core Durable Goods Orders m/m
- July 27: Unemployment Claims
- July 28: Advance GDP q/q
FedWatch July 26 Rate Hike Probability for July 24: 3.1% (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 had a recent rally in which resistance has been put in at around 2475. The market is now pulling back from this high.
A Look Into the Heat Map
The market was held up by large-cap Technology companies.
VIX – 9.43
Oil (USO) – Bearish – Currently forming a bullish reversal pattern, and inverted cup and handle/ascending triangle. A low had been put in at $42, then again at $44, and now at $46. The bullish trigger for this should be above $47.
Ag (DBA) – Bearish
GLD – Bullish
SLV – Bearish
UUP – USD weighted ETF – Bearish – The US dollar has been on a bear run. Look for support to be put in soon at 93. This level has consistently held as support for most of the last 2 and a half years since it has be put in.
SOLON’S TRADING THOUGHTS
The market is pulling back after hitting recent highs as earnings are being released. This will be a busy week as economic reports are being released as well as an FOMC statement. It is not expected however that the Federal Reserve will raise interest rates as they have done so twice already and have been adamant on three rate hikes, the third of which will likely take place in September or December.
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. The following companies are reporting earnings over the next several days:
With the VIX closing below 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.
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