11 Minute Read

Market Recap July 25, 2017

July 25, 2017

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MR

 

MARKET SNAPSHOT
Dow21613.43+100.26(0.47%)
Nasdaq6412.14+1.37(0.02%)
SP 5002477.09+7.17(0.29%)
10-yr Note-21/322.332
NYSEAdv 1824Dec 1132Vol 1.12 bln
NasdaqAdv 1607Dec 1208Vol 1.9 bln

 

IN THE NEWS HIGHLIGHTS:

  • Generally positive batch of earnings reports.
  • Alphabet (GOOGL) weighs on tech group following earnings.
  • Financials show relative strength, provide solid sector leadership.
  • Crude oil extends Monday’s rally, underpins energy stocks.
  • US dollar remains near lows.

 

RECAP– The market saw a consistent rally throughout the day, but gave up some of its gains in the late afternoon as it bounced off of resistance. Crude oil continued to see a very strong rally and broke out to the top side which we identified as a possibility yesterday. The US dollar remains near lows as it closed slightly higher.

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

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


Economic Calendar

Today

  • July 25: CB Consumer Confidence – Actual:  121.1  Forecast:  116.5  Previous:  117.3
    • Consumer confidence continues to remain high which is a leading indicator for future consumer spending.

 

Upcoming Reports

  • 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 25: 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 pressed against intraday resistance near 2478 and bounced off. This coincided with the TRIN flirting with a close below 0.50.

 


A Look Into the Heat Map

The market was largely bullish, but there was clear weakness seen in sectors such as Healthcare, Utilities, and Industrial Goods.

 

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

VIX – 9.43

COMMODITIES

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. Broke past our trigger which we identified yesterday. With the current momentum, it could run well to $50.
Ag (DBA)Bearish
GLD Bullish
SLVBearish

THE DOLLAR

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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