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Market Recap – Monday, February 12th 2018

February 12, 2018

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MARKET SNAPSHOT
Dow24601.27+410.37(1.70%)
Nasdaq6981.96+107.47(1.56%)
SP 5002656.00+36.45(1.39%)
10-yr Note-1/322.857
NYSEAdv 2195Dec 792Vol 1.03 bln
NasdaqAdv 1924Dec 1016Vol 2.2 bln

 

IN THE NEWS HIGHLIGHTS:
  • Bulls ride Friday’s positive momentum.
  • Apple (AAPL) outperforms, underpins top-weighted technology sector.
  • Crude oil breaks six-session losing streak.
  • US dollar sold off; falls to 90 on the Dollar Index.

 

RECAP– The market rallied in relief today following last week’s selloff.  Crude oil closed slightly higher today, near $60 per barrel. The US dollar rallied early, but closed the day lower at 90 on the Dollar Index.

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

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


Economic Calendar

Today

  • Nothing major today.

Upcoming Reports

  • Februar 14: CPI m/m
  • Februar 14: Core CPI m/m
  • Februar 14: Core Retail Sales m/m
  • Februar 14: Retail Sales m/m
  • Februar 14: Crude Oil Inventories
  • Februar 15: PPI m/m
  • Februar 16: Building Permits

 

FedWatch March 21 Rate Hike Probability for February 12:  77.5% (View the probability chart here)


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

  • RSI is below 50 signifies that the market is bearish.
  • On Balance Volume is at its moving average.
  • The market had its first major pullback in over 6 months. The 300 point selloff from its highs signifies a major correction to the market.
  • The selloff the past week has been very severe. The bullish uptrend has been broken and the momentum is significantly bearish in the short term.
  • The market has pulled back in relief over the past two sessions. This could be a temporary bearish retracement before selling continues. Look price to converge into its moving averages.
  • With the TRIN closing at 0.60, there is the possibility of a bearish reversal tomorrow.

 


A Look Into the Heat Map

The market bounced back in relief following last week’s selloff.

(click on symbol for chart)
SPX – Bearish
DOWBearish
NasdaqBearish
Russell – Bearish

VIX – 25.61

COMMODITIES

Oil (USO)Bullish
Ag (DBA)Neutral
GLD Bullish 
SLVBullish 

THE DOLLAR

UUP USD weighted ETF – Bearish – The US dollar is currently pulling back from its prior bearish move. You could perceive this as short-term bullish on the past couple of weeks, but its longer term downtrend is very much in place. Technically, this could very well pull back into the 92 range on the Dollar Index before it resumes heavy future selling.

 


SOLON’S TRADING THOUGHTS

The market sold off heavily last week, providing for the first correction in a long time. The correction came in a severe move, and this week should serve as relief of sorts for the huge drop. Any pullback into its major moving averages may just serve as a bearish retracement before future selling. With volatility being back up and the market consolidating at a new level, it may be a good time to capitalize on selling options in the form of far out of the money naked puts on stocks/ETF’s that had a severe move last week or credit spreads.


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