China’s PMI Manufacturing reading came out overnight and was the lowest reading since March 2009. So the world’s 2nd largest economy is struggling and that is weighing on the global economy, commodities and markets.
In today’s Weekday Market Wrap video we check in on the German DAX, Shanghai Composite Index and the Hang Seng Index. Yesterday the DAX closed below the August 24th sell-off close. The U.S. indices haven’t done that yet. Continue reading
After the pause day yesterday, the sell-off resumed with a vengeance today. At one point the DJIA was down nearly 300 points. Declining stocks led advancing stock on the NYSE by 4:1 and the number of 52 week new lows on the NYSE was the highest since Aug. 26th. In today’s Weekday Market Wrap video (below) I look at all the action. Continue reading
Market action today looks like a pause in the selling. The DJIA was up 125 points and the SPX up 9 points. Biotechs got hurt today in some serious selling. In tonight’s video (below) I look at both the IBB and XBI ETFs.
I also review the trade ideas. NFLX trade idea opened today and there are 4 new trade ideas on IBM, KORS, SCTY and WFM. Continue reading
On Thursday the DJIA and S&P 500 (SPX) put in reversal bars. We got the follow-thru on Friday with the DJIA down nearly 300 points and the SPX down 32 points…the biggest down day since Sept. 1st. Now we have a similar reversal bar for the week.
The market had reached an overbought extreme with the 3 week counter-trend move. Based on Elliott Wave count, Put/Call extremes and other momentum indicators there is still more selling to come.
I go into all of this in the detailed Weekend Market Analysis Video below. I also review the weekly charts of American Express (AXP), Bank of America (BAC) and Goldman Sachs (GS). Continue reading
The Federal Reserve didn’t raise interest rates today because of concern about the global economic situation. So the Fed Funds rate has been essentially flat at about .14% for almost 7 years now. By not raising rates today, the Fed spoke loud and clear. It says volumes about what is really going on.
The market’s reaction to China and other things has the Fed’s attention. But what Chairwoman Yellen also talked about was the lowering of the inflation curve out into the future. They are not seeing inflation coming back and there is a real concern about deflation getting a strong toehold globally.
The Fed meets again in October and December so there still is an opportunity to raise rates then. The DJIA was up 193 points at its intra-day high and closed down 65 points at 16,674.70. In the Weekday Market Wrap video below I look at the market action and CAT, WYNN, EXPE. Continue reading
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