Morning Market Report Wednesday May 24th
May 24, 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-23-2017/
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):
7:00 AM – MBA Mortgage Applications (see below)
9:00 AM – FHFA House Price Index (see below)
10:00 AM – Existing Home Sales
2:00 PM – FOMC Minutes
Economic News Highlights:
- Chinas credit was downgraded – for the first time in 30 years from A1 to As3 by Moody’s. Read More…
- U.S Markets Neutral– overnight futures were neutral awating 2PM FOMC minutes. Read More…
- Oil Still for 6th day- currently at over $51 barrel; the oil cartel is expected to extend cuts March 2018, Read More…
- UK equities and currency rise – Both the FTSE 100 and sterling rose, in defiance of yesterday’s suicide bombing in Manchester, even after Prime Minister Theresa May warned that further attacks could be imminent.
- Australian dollar and non precious metals fall – Australia is a large supplier of the metals (iron are and nickel) for the Chinese economy, and China is Australia’s largest trading partner. This slowdown of China’s economic momentum makes local assets higher risks as both economies are correlated.
- Tiffany & Co. shares fall 5.6% – TIF reported lower than expected earning for this quarter. Read More…
- IMF reafirms Mexico’s Credit Line – $86M in flexible spending is available to stablize their currency if needed in cases of extreme volatility.
- MBA Mortgage Applications Mixed – Purchase applications for home mortgages fell a seasonally adjusted 1 percent in the May 19 week, but refinancing applications rose 11 percent from the previous week to the highest level since March. Read More…
- FHFA House Price Index Positive– Home-price appreciation continues to hold near 6 percent with FHFA’s house price index just off 2-year highs at a yearly 6.2 percent. The monthly gain, at 0.6 percent, is slightly higher than expected. Read More…
Major Index Charts and Observations:
Markets are set to open flat again as investors await the FOMC minutes at 2:00PM today to get ecomic forward guidance.
- S&P 500 – Currently at 2,398
- Dow 30 – Currently at 20,937
- Nasdaq – Currently at 5,720
- S&P VIX – Curently 10.62
- Russel 2000 – Currently at 1380 (continues to slowly climb but still within its channel)
Commodities:
- Silver – 17.081 – currently neutral ahead of Fed minutes
- Gold – 1252 – still hittings its head against resistance at $1,265,
- Natural Gas – 3.268 – fell below previous support of $3.335 yesterday, look for this to be new resistance.
- Crude Oil currently $51.30– still slowly edgin upward ahead of oil cartel decision
Market Sectors:
When looking for bullish stocks look within a bullish sector, and for bearish trades look within a bearish sector. Currently the SPY is starting to look like an iron condor candidate as it continues to bounce off resistance at 2400.
Yesterday XLY (consumer discretionary) was negative which is in contrast to the fact that it has been the second most bullish sector for the last few months.
Also yesterday XLF was the most positive in contrast to the fact that it has been one of the weakest sectors for the last few months
XLK (technology) continues to be the most bulls.
Currencies:
- USD currently $97.21 – recovered some ground, back above $97
- Bitcoin currenty $2294 – this is now one of the biggest markets as the frenzy is picking up steam
- Ethereum – currently at $197 – almost doubling in price in the last week alone!
Trading Thoughts
The VIX continues to drop as investors seem ready to shrug off anything in their bullish optimism. Remembert that markets tend to drift upward usually when the VIX is low.
Market Bias – I am feeling 0 or netutral for the market open this morning and expect any major moves to be triggered by a news event such as the Fed Minutes at 2PM.
More Bearish Neutral More Bullish
-3 -2 -1 0 +1 +2 +3
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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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