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Market Recap: August 20 2015

August 20, 2015

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ECONOMIC EVENTS & NEWS

Markets down about 2% for the day. Is Mr. Bear finally awake?

Continued volatility from China is hitting investors. S&P triggers below major support of 2070 and the 200 day moving average.

Look for a followthrough tomorrow or retest of resistance now.

Link to this news click here

Economic Calendar:

Thursday – Initial Jobless claims up & Housing also up a little
Friday – nothing

Fedwatch link
 for rate hike predictions= Sept. 24%
Option volatility VIX spikes over 18

 

MARKETS
(click on symbol for chart)
SPX –  Bear
DOW–  Bear
Nasd –  Bear
Russ –  Bear

VIX –  13.49 (down .12) but spiked early to 14.33
Archa Hi  vs Low =  Negative; bearish

 

SECTORS – trend on daily chart (click symbol for chart)

Materials (XLB) Bear
Energy (XLE)    Bear- Watch for swing high trigger follow thru here on Friday
Financials (XLF) – Bear 
Industrials (XLI)Bear
Technology (XLK) Bear
Staples (XLP) –   Neutral to bearish
Utilities (XLU) –  Bull
Healthcare (XLV)  Bearish
Discretionary (XLY) –  Bearish
Mining (XME) –    Bear
Real Estate (IYR) –  Bull 
Retail (RTH) –    Neutral 
Transports (IYT) – Bearish

Oil (USO)Bear
Ag (DBA)Bear
GLD –   Bear
SLV –    Neutral to bullish, watch for support to hold on 20 ema to go bullish

WORLD WATCH
VEU – world markets – USA companies – BEAR
EEM – global emerging markets- BEAR big time

THE DOLLAR
UUP – USD weighted ETF – Bearish , watch 25.03 as support.

COACHES TRADING THOUGHTS

China is the focus with the ripple down affect of Chinese Yuan.  To learn more about Chinese currency war, effect click here for our video.

Only reversal indicator showing now is VIX outside bollinger band. When it dips back into the band, it could find bearish retracement to kiss off the 2070 level or so on SPX. Other than that, watch out for followthrough with volatile days ahead. Fed rate increase predictor dropped from over 50% to 25%.  Watch oil looking for a bottom. Markets are down for the year so far. I welcome the VIX volatility; premiums are higher on options, so use them to hedge and set up covered calls against stocks while it’s there.

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One Reply to “Market Recap: August 20 2015”

  1. Avatar BradSmith says:

    Thanks for the update Gino, we need all the help we can get in this market. Any more ideas you have for hedging and protecting trades along with our 401k’s and IRA’s would be a great help.

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