11 Minute Read

Market Recap July 26, 2017

July 26, 2017

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MR

 

MARKET SNAPSHOT
Dow21711.01+97.58(0.45%)
Nasdaq6422.71+10.57(0.16%)
SP 5002477.79+0.70(0.03%)
10-yr Note+14/322.289
NYSEAdv 1457Dec 1448Vol 826.6 mln
NasdaqAdv 1384Dec 1473Vol 1.97 bln

 

 

IN THE NEWS HIGHLIGHTS:

  • Fed leaves rates unchanged, as expected; Balance sheet unwind expected soon.
  • Another positive batch of earnings; Boeing (BA), AT&T (T) solidly higher.
  • Crude oil jumps following bullish EIA inventory report.
  • US dollar comes closer to support at 93.

 

RECAP– The market closed the slightest bit higher today as it presses against resistance. Crude oil continued rally after a larger than expected decrease in supplies. The US dollar continued to put in new lows for the year.

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

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


Economic Calendar

Today

  • July 26: Crude Oil Inventories – Actual: -7.2M Forecast:  -3.3M  Previous: -4.7M
  • July 26: FOMC Statement
    • While interest rates remained the same, the Federal Reserve signaled that they will begin unloading their balance sheet “relatively soon” and continue to move forward with the normalization of monetary policy. Expect the Fed to announce the cutting of their balance sheet in the next meeting which will take place on September 20.
  • July 26: Federal Funds Rate – Actual: <1.25% Forecast: <1.25%  Previous: <1.25%

 

Upcoming Reports

  • July 27: Core Durable Goods Orders m/m
  • July 27: Unemployment Claims
  • July 28: Advance GDP q/q

 

FedWatch September 20 Rate Hike Probability for July 26: 0.0% (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.
  • Much like yesterday, the market sold off late in the day as it pressed against resistance.

 


A Look Into the Heat Map

The market was mixed with Utilities leading the market higher.

 

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

VIX – 9.60

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 previously identified. 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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