Morning Market Report – Tuesday May 23rd
May 23, 2017
The Morning Market Report is a daily report delivered to Tackle Trading members. In this report, you’ll receive a summary of major market news, the list of that day’s economic calendar, information regarding th major markets indexes, industry sector performance, comodities, currencies. and links to usefull sites and/or stories.
The Morning Market Report is designed to compliment the Scouting Reports (available to Pro Members) on Mondays and the Market Recap during the rest of the week so make sure to refer to those reports first. To read yesterday’s Market Recap by Solon click here https://tackletrading.com/market-recap-may-22-2017/
This report can be part of your 7 Step Process to Successful Trading. By helping you start at the top of the markets, choosing a trading strategy, and finding and analyzing potential trades. So don’t start trading uninformed; add the Morning Market Report to your daily routine.
Todays Economic Calendar (Eastern Time Zone):
9:45 AM – Flash PMI Composite
10:00 AM – New Home Sales
10:00 AM – Fed Manufacturing Index
3:15 PM – Neel Kashkari Speaks
Economic News Highlights:
- European Markets Higher – London’s FTSE was up .2% just below record highs, Germany’s DAX rose .2% and France’s CAC 40 gained 4.4%
- Pound Sterlin Lower- against the yen, euro, and dollar
- ISIS Suicide Bomber at Ariana Grande Concert- killed 22 people including children, another 59 injured
- Bitcoin Broke $2,200 yesterday – excitement over an SEC approved exchange for cryptocurrency is pushing price
- Nokia and Apple settle dispute – both stocks were higher (especially NOK up 6.2%) after inking a deal
- Hauwei enters PC market – Chinese telecom and smartphone giant will be taking on Lenovo, HP and Dell. Read more…
- Chicago Fed National Activity Index Positive – read more…
Major Index Charts and Observations:
Markets are set to open higher and the VIX continues to drop this morning despite renewed terrorist fears fueled by upbeat optimism over Trump’s budget plan and this morning’s positive economic data.
- S&P 500 – Currently at 2,396
- Dow 30 – Currently at 20,894
- Nasdaq – Currently at 5,713
- S&P VIX – Curently 10.71
- Russel 2000 – Currently at 1378 (continues to slowly climb but still within its channel)
Commodities:
- Silver currently 17.243 – above support at $17 that has been resistance for it, next resistance $17.50-$18
- Gold currently 1260.88 – slowly heading up to resistance at $1,265
- Natural Gas currently 3.384 – sitting above new support of 3.35
- Crude Oil currently $51.14– still holding above support of $51 awaiting OPEC decision
Market Sectors:
When looking for bullish stocks look within a bullish sector, and for bearish trades look within a bearish sector.
- XLE (Energy) and XLF (Financials) have been the weakest sectors lately
- XLY (consumer discretionary) and especially XLK (technology continues to be the most bullish sectors
Currencies:
- USD currently $96.86 – look for new support all the way down at the $96 level
- Bitcoin currenty $2229 – rally continues as big players invest $107 million in R3. Read more…
- Ethereum – currently at $163 – listen to Tackle Trading Podcast #216 to learn more
Takle Trading 25 Stock List
This list is designed to be used as part of a cash-flow strategy. Sorted by implied volatility (which helps us decide if we are buyers or sellers of options) is how they did yesterday:
Trading Thoughts
The markets had some positive movement and the VIX remains low this morning despite renewed ISIS activity overseas.
The positive economic news and earling morning sentiment point to eiher a neutral to slightly postive open for the S&P this morning.
Market Bias – I am feeling netutral to slightly bullish 0 to +1 using the following scale. (now if the market would only listen to me we’d be in good shape)
More Bearish Neutral More Bullish
-3 -2 -1 0 +1 +2 +3
Book Overview:
The Death of Money is the story of “the comping collapse of the international monetary system.” This is my second book by James Richards and it presents a scary look at what can happen if our complex economy continues in its current path that is neither inflationary or deflationary. He explains why the Fed must continue to devalue the dollar and to raise nominal gains for tax purposes.
The books gives seven warnings to watch for as signs of the “death of money” those are:
– A rapid rise in the value of gold.
– Rapid purchases of gold by China.
– IMF reforms which devalues the portion of SDRs backed by U.S. dollars.
– Defeat of efforts by U.S. regulators to limit the size of big banks.
– Rapid fluctuations of the Stock Market.
– A sustained reduction in U.S. and/or Japanese asset purchases
– The financial disintegration of China and its “ghost cities” collapses.
The book ends with recommendation how to diversify a portfolio to be ready for both deflation and inflation with a mix of of 20% gold, 20% undeveloped land, 10% fine art, 20% hedge funds and 30% cash.
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Hector Duenas Jr. started his trading journey during the height of the tech bubble in 2001 as part of the 90% that looses money in the stock market.
A Rich Dad conference in 2016 changed his life and now he writes the Morning Market Reports for Tackle Trading.
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Thanks Hector! I loved that book. It opened my eyes to a lot and I think it was easier to understand compared to Currency Wars. I should probably read it again to see what I missed the first time around!
I liked it better than “Currency Wars” too… thanks KerenClark
thanks Hector