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.
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
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
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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