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Market Scoreboard: June 16th, 2017

June 16, 2017

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The Market Scoreboard is a prelude to our Stock & Options Reports to ensure we’re on the right side of the markets. 
In this report we will cover:

  • News that moves the markets

  • Market & Sector trends and key levels

  • Seasonality of markets and sectors

  • World markets, the dollar & key commodities

  • Finally, a pro trader’s thoughts & what strategies have been working best

It’s not only about getting in the game, but being on the right team!


News Highlights

  • As expected, the FOMC raised rates for the second time this year, but expectations of a rate hike in December decreased from over 50% to 43%.
  • The Fed finally set out a plan to pay down its balance sheet over time.
  • Crude oil had another surprise this week with a smaller than expected draw down and the chart isn’t looking too pretty…
  • Amazon(AMZN) announced plans to acquire Whole Foods Market(WFM).
  • Earnings list below with trading days until the announcement, day of the week, before/after market open/close, Market Maker Move, and IV rank. (Always double check the earnings date!)

NEWS HIGHLIGHTS FOR COMING WEEK: 

MON:  

TUE:  

WED:  Existing Home Sales, EIA Petroleum Status Report

THUR:  Jobless Claims

FRI:  PMI Composite Flash, New Home Sales

Click here for Next week’s economic calendar

Click here for a current eMini S&P Futures Chart



MARKETS

(click on symbol for chart)

SPX –   Bullish
DOW   Bullish
NASDAQ  Bullish, at Support
RUSSELL – Neutral, still trying to breakout

Key Levels:  Notice S&P 500 chart below

            • Resistance – 2445
            • Support – 2415
            • Trading – Above 20-Day, 50-Day & 200-Day MAs
            • RSI – Above 50 – Bullish
            • OBV – At Moving Average – Neutral

Market Correlation below – China is faltering but sitting at support with the rest of the world fairly neutral at the moment.

INTERNAL STRENGTH

Archipelago electronic exchange trades over 8,000 listed securities.  If you looked at all those stocks on a three-month chart and counted how many made new highs versus those making new lows you would see the following chart:

            • Finished the week measuring at = 16 Neutral.
            • Two closes above +50 = Bullish,   two closes below -50 = Bearish


SEASONALITY of Markets and Sectors


SECTORS

Quick Guide: Best & Worst Sector Performance by Month 20-year average

JUNE

Best historically: Utilities XLU & Healthcare XLV

Worst historically: Financials XLF & Industrials XLI

SECTORS & RANKING STATUS – (current)

Tackle Gridiron June 16th, 2017

Match the Strategy 9-9-16


Broad Market Sector Spyder ETFs – click symbol for Sector trend, and click top 10 holdings for that sector to filter for trading candidates.

Basic Materials  (XLB)    (top 10 holdings- click here)
Financials (XLF)         (top 10  holdings – click here)
Industrials (XLI)        (top 10  holdings – click here)
Technology (XLK)     (top holdings- click here)
Energy (XLE)              (top 10  holdings – click here)
Healthcare (XLV)     (top 10  holdings – click here)
Cons. Cyclicals (XLY)  (top 10  holdings – click here)
Cons. Staples (XLP)     (top 10  holdings – click here)
Utilities (XLU)               (top 10  holdings – click here)

Thumbnail of all 9 major sectors click here

Sector correlation performance chart


World Markets/ The Dollar/ Key Commodities

Commodity Index (GCC) – Bearish

Gold (GLD) –  Neutral to Bullish
Oil (USO) – Bearish, at Support

WORLD WATCH
All-world excluding USA (VEU) –   Bullish
Global Emerging Markets (EEM) –   Bullish

THE DOLLAR
USD weighted ETF  (UUPBearish, at Resistance


Trader final thoughts and strategies:

Well, I was hoping for something to give us some direction this week but all we got was a whole lot of hurry up and wait… The Indices were most sideways and even the FOMC didn’t do much to the markets.

It’s a relatively slow week as far as news goes although it picks up during the latter half. We are getting into the sweet spot for what I like to call pre-earnings strategies, so be looking out for Vega/Volatility opportunities. Both of the coaches shows this last week were centered around Strangles so go back and watch them if you missed out. They were packed with good stuff from coaches Matt and Tim.

Oil is sitting right at support, but if it breaks we could see a really nice discount price *although it’s already pretty low.* Naked puts would be a possible play here because if we get a bounce you keep the premium, and if it breaks down you can still get paid to buy it at a lower price.

Have a great trading week, and I’ll see you in the clubhouse!

– – – – – – —

Brad May started his trading journey in 2012 as a Rich Dad student and is currently generating weekly Scouting Reports for Tackle Trading. The core of Brad’s trading style consists of option strategies along with technical and analytical analysis. His knack for programming has enabled him to code several unique indicators, primarily focused on Vega trading around earnings events, using the Think or Swim trading platform.

Brad May Photo

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2 Replies to “Market Scoreboard: June 16th, 2017”

  1. AdiPuplampu says:

    Thanks Brad

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