Monday, December 10, 2018

12/10/2018 - **Overnight Markets and News**

**Overnight Markets and News**

*Dec S&P 500 E-minis (ESZ18 -0.28%) are down -0.3% this morning on continued US/Chinese tensions and reports that UK Prime Minister May is planning to postpone Tuesday's Parliament Brexit vote.  Asian stocks sold off sharply on market worries that the recent US/Canadian arrest of Huawei's CFO could kill the US/Chinese trade talks and result in new tariffs.  There was also concern about weak Chinese economic data released over the weekend.  Asian stocks today closed sharply lower across the board:  Japan Nikkei -2.12%, Hong Kong Hang Seng -1.19%, Shanghai Composite -0.82%, Taiwan -1.16%, Australian S&P 200 -2.27%. 

*The dollar index (DXY00 +0.15%) this morning is mildly higher by +0.18 (+0.19%) while EUR/USD (^EURUSD +0.30%) is up +0.0035 (+0.31%) and USD/JPY (^USDJPY unch) is slightly lower by -0.05 (-0.04%).  March 10-year T-notes (ZNH19 -0-010) are unchanged.

*Commodity prices are down by -0.44% on average this morning.  Jan WTI crude oil prices are down -0.88 (-1.67%) and Jan gasoline is down -0.89 (-1.44%) as support fades from last Friday's OPEC+ agreement to cut 2019 oil production by 1.2 million bpd.  Feb gold this morning is down 1.5 (-0.12%), March silver is down -0.086 (-0.59%), and March copper is down -0.024 (-0.87%) on the mildly stronger dollar.  Grains this morning are lower and softs are mixed.

*The euro is seeing some support from today's German trade report where Oct exports rose by +0.7% m/m (stronger than expectations of +0.4%) and Oct imports rose by +1.3% m/m (stronger than expectations of +0.5%).  Germany's Oct trade surplus eased slight to 18.3 bln euros from Sep's preliminary report of 18.4 bln euros, but was larger than expectations for a decline to 17.1 bln euros.

*China's weekend economic data was soft and fueled ongoing worries about the weaker Chinese economy.  China's Nov exports rose by +5.4% y/y, weaker than expectations of +9.4%, and Nov imports rose +3.0% y/y, weaker than expectations of +14.0%.  China's Nov CPI eased to +2.2% y/y from Oct's +2.5% and was weaker than expectations of +2.4%.  China's Nov PPI eased to +2.7% y/y from Oct's +3.3%, which was in line with market expectations.  On the brighter side, China's Nov reserves rose to $3.061 trillion from Oct's $3.053 billion, which was larger than market expectations for a decline to $3.044 trillion.

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**U.S. Stock Preview**

*Key U.S. news today includes: (1) Oct JOLTS job openings (expected +91,000 to 7.100 million, Sep -284,000 to 7.009 million).

*Notable Russell 1000 earnings reports today include: Casey's General Stores (consensus $1.59).

*U.S. IPO's scheduled to price today: Mercantil Bank Holding Corp (AMTB).

*Equity conferences during the remainder of this week: Capital Link Invest in Greece Forum on Mon, Object Management Group Technical Committee Meeting on Mon, Parks Associates Digital Media Conference on Mon, Q2B Conference on Mon, Cowen Network and Cybersecurity Conference on Tue, Growth Marketing Conference on Tue, BMO Prescriptions for Success Healthcare Conference on Wed, Imperial Capital Security Investor Conference on Wed.




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**Overnight U.S. Stock Movers**

*Facebook (FB -1.58%) gained more than 1% in after-hours trading when it announced a new $9 billion stock buyback program.

*Papa John's (PZZA -1.62%) may see support after an SEC filing released after the close Friday showed founder John Schnatter engaged a financial adviser Nov 30 to "assist him in reviewing the financial prospects of the company and in assessing alternatives for increasing shareholder value," including merger or other corporate transactions. 

*Fluor (FLR -2.17%) won a $145.7 million contract from the U.S. Army for the building of a weapons storage and maintenance facility in Laramie, WY.

*Hillenbrand (HI -2.70%) may move higher initially this morning after its board authorized a new $200 million stock buyback program.
 


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**Market Comments**

*Dec S&P 500 E-minis are down -0.3% this morning.  Friday's closes: S&P 500 -2.33%, Dow Jones -2.34%, Nasdaq 100 -3.30%.  The S&P 500 on Friday closed sharply lower on continued US/China trade tensions after White House adviser Navarro said tariffs on Chinese goods will increase if there's no trade deal after the 90-day truce expires and after the recent U.S.-instigated arrest of Huawei's high-profile CFO.  Stocks were also undercut by the weaker-than-expected U.S. Nov payroll report of +155,000 vs expectations of +198,000.  Technology stocks were led lower by a -3.5% plunge in Apple to a 7-1/4 month low.

*March 10-year T-notes are unchanged.  Friday's closes: TYH9 +10.00, FVH9 +8.75.  Mar 10-year T-notes on Friday closed higher on the smaller-than-expected +155,000 increase in U.S. Nov non-farm payrolls, which was dovish for Fed policy, and on the sell-off in stocks, which boosted the safe-haven demand for T-notes.

*The dollar index this morning is mildly higher by +0.18 (+0.19%) while EUR/USD is up +0.0035 (+0.31%) and USD/JPY is slightly lower by -0.05 (-0.04%).  Friday's closes: Dollar Index -0.296 (-0.31%), EUR/USD +0.0005 (+0.04%), USD/JPY +0.01 (+0.01%).  The dollar index on Friday closed lower on the weaker-than-expected U.S. Nov non-farm payroll report, which was dovish for Fed policy, and on the slide in stocks, which undercut USD/JPY on increased safe-haven demand for the yen.

*Feb gold this morning is down 1.5 (-0.12%), March silver is down -0.086 (-0.59%), and March copper is down -0.024 (-0.87%) on the mildly stronger dollar.  Friday's closes: Feb Comex gold (GCG19) on Friday closed up +9.0 (+0.72%) and Mar Comex silver (SIH19) closed up +0.187 (+1.29%).  Feb gold on Friday climbed to a 4-1/2 month high due to a weaker dollar and after the weaker-than-expected U.S. Nov non-farm payroll report of +155,000 (vs expectations of +198,000) bolstered speculation the Fed will pursue a slower pace of interest rate hikes.  Gains in gold were contained after a rally in equities reduced safe-haven demand for gold.  Gains in silver were limited by fund selling after long silver positions in ETFs fell to a 3-1/2 week low of 527.961 mln troy ounces on Thursday.

*Jan WTI crude oil prices are down -0.88 (-1.67%) and Jan gasoline is down -0.89 (-1.44%) as support fades from last Friday's OPEC+ agreement to cut 2019 oil production by 1.2 million bpd.  Friday's closes:  Jan WTI crude oil (CLF19) on Friday closed up sharply by +$1.12 per barrel (+2.18%) and Feb Brent crude (CBG19) closed up +$1.37 (+2.28%).  Jan RBOB gasoline (RBF19) closed up by +5.24 cents per gallon (+3.66%).  The energy complex rallied sharply Friday with Jan gasoline at a 2-week high after OPEC+ agreed to a larger-than-expected cut in crude output.  OPEC+ said at Friday's meeting in Vienna that they agreed to cut crude production by -1.2 million bpd, a bigger cut than the -1.0 million bpd cut in production proposed by Saudi Arabia.  Crude prices also moved higher Friday on a weaker dollar and an increase in the crack spread to a 2-week high, which boosts the incentive for refiners to purchase crude to refine into gasoline.  Crude prices also have support from Thursday's weekly EIA data that showed U.S. crude inventories plunged by -7.23 million bbl, a much bigger than decline than expectations of -2.0 million bbl.
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*PLACING TRADES*
HOW TO READ THE MARKET


OK SO IF YOU LOOK AT TODAYS SHEET YOU WILL LOOK FOR YOUR BUY/SELL SIGNALS FIRST.  THE BUY SELL SIGNAL IS LOCATED UNDER THE "POSMOM" & "NEGMOM" COLUMNS. FOR BUYS SIGNALS YOUR LOOKING FOR EITHER A "311", "411" OR "911" LIKEWISE FOR SELL SIGNALS.  BUY AND SELL ARE BASED ON THE POS MOM AND NEG MOM THERE IS ALSO "11" WHICH MEANS THAT THE MARKET IS LOCKED IN WITH EITHER BULLISH OR BEARISH MOMENTUM. THIS IS ANALOGOUS TO A CONTINUATION PATTERN IN EITHER DIRECTION.  NEXT YOU LOOK AT THE "TREND" COLUMN. IS YOU HAVE A BUY SIGNAL (AS INDICATED ABOVE) THEN YOU KNOW THAT YOU WILL BE TRADING WITH THE TREND IS THERE IS A "3","2" OR "1" IN THE TREND COLUMN. 3 IS A MATURE STAGE 3 TREND. EVERYTHING IS LOCKED IN MOMENTUM WISE. 2 IS A STAGE 2 TREND THAT IS STRENGTHENING AND WILL BECOME A STAGE 3 SOON.   1 IS THE BEGINNING STAGE OF A TREND THAT DEVELOPING.  NEXT......IS THE MARKET TIMING. THATS WHERE THE PRICE TRIGGERS COME INTO PLAY. FOR LONGS YOU CAN ENTER @ THE "ENTRY" COLUMN OR TAKE A MORE CONSERVATIVE APPROACH (IF THE "52WK" COLUMN IS GREATER THAN THE "ENTRY" COLUMN) AND ENTER AT THE "52WK" TRIGGER.  ONCE YOU HAVE MADE YOUR DECISION YOU SIMPLY PLACE THE TICKET AND WAIT FOR THE MARKET TO COME TO YOU.
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*EXITS* - THERE ARE TWO WAYS TO DO EXITS. FIRST YOU CAN EXIT WHEN THE OPPOSITE PRICE TRIGGER IS HIT.

EXITS WORK LIKE ENTRY POINTS. YOU LET THE MARKET COME TO YOU. THE MORE CONSERVATIVE APPROACH IS TO USE THE "STOPLOSS" COLUMN AS YOUR EXIT ON LONG POSITIONS AND USE THE "ENTRY" COLUMN TO EXIT ON SHORT POSITIONS.
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*SHORT SELL*                                     

THIS IS WHERE YOU SELL SHORT. THIS IS THE 1ST ENTRY PRICE TO GET SHORT.
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*ENTRY*

KEEP IN MIND THAT IF THIS FIELD IS BLANK THEN DO NOT BUY. SHORTS HAVE CONTROL OF THE MARKET AND THE SYSTEM IS STAYING FLAT. THE ONLY OPTION IS TO EITHER SELL SHORT IF THERE IS AN ENTRY PRICE INDICATED UNDER THE "SHORTSELL" COLUMN. OR STAY FLAT ON THE SIDELINES OR TIGHTEN UP THE STOP IF YOU ARE LONG. YOU CAN USE THE SHORTSELL ENTRY AS YOUR STOP LOSS ON OPEN LONGS.
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*SELLSTOP*

THIS ACTS AS YOUR "SELLSTOP" ON LONG POSITIONS. IF YOU BOUGHT SOMETHING THIS IS WERE YOU SELL IT TO GET OUT. THIS PRICE TRIGGER ALSO ACTS AS YOUR STOP & REVERSE TO GET SHORT WHEN STOPPED OUT OF LONG POSITIONS. THEREFORE THE SELLSTOP ALSO FUNCTIONS AS THE 2nd ENTRY PRICE TO GET SHORT.
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*Positive-Momentum Meaning*:
 
 
11 Positive Momentum
311 SWING TRADE POSITIVE (LONG POSITION SIGNAL)
411 Oversold. Positive Swing VIX (Bottoming)
911 Rally Alert
999 MOMENTUM SHIFT ALERT - (FROM NEUTRAL/BEARISH TO BULLISH)

 ****UPDATE****
THE POMOM & NEGMOM COLUMNS ARE YOUR RALLY & CRASH ALERT USED TO TIME THE ENTRY OF MARKETS. ALSO LOOK FOR THE "11" WHICH IS A LOCKED IN MOMENTUM IN THE MARKET. SO THE RALLY/CRASH ALERT COLUMN IS YOUR BUY/SELL ALERT SECTION. LIKEWISE, THE UPTREND/DOWNTREND COLUMNS TRACK THE MARKETS CURRENT TREND AND THE STRENGTH THEREIN. A READING OF "3" IS A LOCKED IN MATURE MARKET WITH PARABOLIC MOMENTUM. A READING OF "2" INDICATES A MATURE MARKET THAT IS GAINING STRENGTH. A READING OF "1" IS THE BEGINNING STAGES OF A TREND THAT IS DEVELOPING.

SO WHEN YOU SEE A RALLY/CRASH ALERT YOU SHOULD PLACE THE BUY ORDER AHEAD OF THE MARKET USING THE "ENTRY" COLUMN PRICE. USE THE "SELLSHORT" COLUMN PRICE TO PLACE SHORT TICKETS AHEAD OF THE MARKET. NOTE: YOU DO NOT HAVE TO WAIT FOR THE MARKET TO TRIGGER THE PRICE BEFORE PLACING TICKETS. ITS BEST TO PLACE THE TRADE ORDERS AHEAD OF THE MARKET AND LET THE MARKET COME TO YOU. JUST PLACE THE TICKETS, WAIT AND BE PATIENT AND ALLOW THE MARKET TO COME TO YOU............
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*Uptrend - Meaning*

 *PULSEWAVE PRICE CYCLE TREND*
A.K.A "PWPCT"

0 - NO TREND
88 - KUMO CLOUD OF DEATH (CONSOLIDATED SIDEWAYS MARKET)
1   - STAGE ONE PWPCT - BULL MARKET UPTREND FORMING
2   - STAGE TWO PWPCT - STRENGTHENING BULL MARKET UPTREND
3   - STAGE THREE PWPCT - LOCKED IN BULL MARKET UPTREND W/STRONG MOMENTUM

 ****UPDATE****
THE POMOM & NEGMOM COLUMNS ARE YOUR RALLY & CRASH ALERT USED TO TIME THE ENTRY OF MARKETS. ALSO LOOK FOR THE "11" WHICH IS A LOCKED IN MOMENTUM IN THE MARKET. SO THE RALLY/CRASH ALERT COLUMN IS YOUR BUY/SELL ALERT SECTION. LIKEWISE, THE UPTREND/DOWNTREND COLUMNS TRACK THE MARKETS CURRENT TREND AND THE STRENGTH THEREIN. A READING OF "3" IS A LOCKED IN MATURE MARKET WITH PARABOLIC MOMENTUM. A READING OF "2" INDICATES A MATURE MARKET THAT IS GAINING STRENGTH. A READING OF "1" IS THE BEGINNING STAGES OF A TREND THAT IS DEVELOPING.

SO WHEN YOU SEE A RALLY/CRASH ALERT YOU SHOULD PLACE THE BUY ORDER AHEAD OF THE MARKET USING THE "ENTRY" COLUMN PRICE. USE THE "SELLSHORT" COLUMN PRICE TO PLACE SHORT TICKETS AHEAD OF THE MARKET. NOTE: YOU DO NOT HAVE TO WAIT FOR THE MARKET TO TRIGGER THE PRICE BEFORE PLACING TICKETS. ITS BEST TO PLACE THE TRADE ORDERS AHEAD OF THE MARKET AND LET THE MARKET COME TO YOU. JUST PLACE THE TICKETS, WAIT AND BE PATIENT AND ALLOW THE MARKET TO COME TO YOU............
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*Downtrend - Meaning*

*PULSEWAVE PRICE CYCLE TREND*
A.K.A "PWPCT"

0 - NO TREND
-88 - KUMO CLOUD OF DEATH (CONSOLIDATED SIDEWAYS MARKET)
-1   - STAGE ONE PWPCT - BEAR MARKET DOWNTREND FORMING
-2   - STAGE TWO PWPCT - STRENGTHENING BEAR MARKET DOWNTREND
-3   - STAGE THREE PWPCT - LOCKED IN BEAR MARKET DOWNTREND W/STRONG MOMENTUM

 ****UPDATE****
THE POMOM & NEGMOM COLUMNS ARE YOUR RALLY & CRASH ALERT USED TO TIME THE ENTRY OF MARKETS. ALSO LOOK FOR THE "11" WHICH IS A LOCKED IN MOMENTUM IN THE MARKET. SO THE RALLY/CRASH ALERT COLUMN IS YOUR BUY/SELL ALERT SECTION. LIKEWISE, THE UPTREND/DOWNTREND COLUMNS TRACK THE MARKETS CURRENT TREND AND THE STRENGTH THEREIN. A READING OF "3" IS A LOCKED IN MATURE MARKET WITH PARABOLIC MOMENTUM. A READING OF "2" INDICATES A MATURE MARKET THAT IS GAINING STRENGTH. A READING OF "1" IS THE BEGINNING STAGES OF A TREND THAT IS DEVELOPING.

SO WHEN YOU SEE A RALLY/CRASH ALERT YOU SHOULD PLACE THE BUY ORDER AHEAD OF THE MARKET USING THE "ENTRY" COLUMN PRICE. USE THE "SELLSHORT" COLUMN PRICE TO PLACE SHORT TICKETS AHEAD OF THE MARKET. NOTE: YOU DO NOT HAVE TO WAIT FOR THE MARKET TO TRIGGER THE PRICE BEFORE PLACING TICKETS. ITS BEST TO PLACE THE TRADE ORDERS AHEAD OF THE MARKET AND LET THE MARKET COME TO YOU. JUST PLACE THE TICKETS, WAIT AND BE PATIENT AND ALLOW THE MARKET TO COME TO YOU............
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*Negative-Momentum Meaning*:

 
-11 Negative Momentum
-311 SWING TRADE POSITIVE (SHORT POSITION SIGNAL)
-411 Overbought. Negative Swing VIX (Topping out)
-911 Crash Alert
-777 MOMENTUM SHIFT ALERT - (FROM NEUTRAL/BULLISH TO BEARISH)


 ****UPDATE****
THE POMOM & NEGMOM COLUMNS ARE YOUR RALLY & CRASH ALERT USED TO TIME THE ENTRY OF MARKETS. ALSO LOOK FOR THE "11" WHICH IS A LOCKED IN MOMENTUM IN THE MARKET. SO THE RALLY/CRASH ALERT COLUMN IS YOUR BUY/SELL ALERT SECTION. LIKEWISE, THE UPTREND/DOWNTREND COLUMNS TRACK THE MARKETS CURRENT TREND AND THE STRENGTH THEREIN. A READING OF "3" IS A LOCKED IN MATURE MARKET WITH PARABOLIC MOMENTUM. A READING OF "2" INDICATES A MATURE MARKET THAT IS GAINING STRENGTH. A READING OF "1" IS THE BEGINNING STAGES OF A TREND THAT IS DEVELOPING.

SO WHEN YOU SEE A RALLY/CRASH ALERT YOU SHOULD PLACE THE BUY ORDER AHEAD OF THE MARKET USING THE "ENTRY" COLUMN PRICE. USE THE "SELLSHORT" COLUMN PRICE TO PLACE SHORT TICKETS AHEAD OF THE MARKET. NOTE: YOU DO NOT HAVE TO WAIT FOR THE MARKET TO TRIGGER THE PRICE BEFORE PLACING TICKETS. ITS BEST TO PLACE THE TRADE ORDERS AHEAD OF THE MARKET AND LET THE MARKET COME TO YOU. JUST PLACE THE TICKETS, WAIT AND BE PATIENT AND ALLOW THE MARKET TO COME TO YOU............
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*MOMTRIG = STOP RUNNER* 

THIS IS WHERE LARGE ORDERS AND INSTITUTIONAL MONEY WILL ENTER THE MARKET I.E. WHERE STOPS WILL BE RUN. THIS IS ALSO KNOWN AS "THE INTRADAY PRICE INFLECTION POINT".

*NOTE:*

THIS IS WHERE THE MARKET NEEDS TO CLOSE IN ORDER SO MAINTAIN THE CURRENT TREND OR SHIFT TRENDS.

IN A BEAR MARKET THIS IS WHERE THE MARKET NEEDS TO CLOSE ABOVE ON THE DAILY/WEEKLY CHART IN ORDER TO PUT IN A SHORT TERM BOTTOM.

IN A BULL MARKET THIS IS WHERE THE MARKET NEEDS TO CLOSE BELOW ON THE DAILY/WEEKLY CHART IN ORDER TO PUT IN A SHORT TERM TOP.

GREEN = POSSIBLE HEAVY BUYING AT PRICE INFLECTION POINT.
RED = POSSIBLE HEAVY SELLING AT PRICE INFLECTION POINT.
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*52 WEEK HIGH*

*THIS ACTS AS YOUR 2nd OPTION FOR INITIAL STOP-LOSS WHEN SHORTING*



*NOTE:*

THIS IS A SPECIFIC ALGO COLUMN THAT TAKES INTO ACCOUNT KEY RESISTANCE AREAS BASED ON BOTH DAILY AND WEEKLY CHARTS. HOWEVER, THE DIFFERENCE IS THAT THE SYSTEM LOOKS AT KEY INTRADAY DATA TO DETERMINE WHICH OF THE CURRENT KEY AREAS ARE MORE IMPORTANT SUCH AS 52 WEEK HIGH, 10 DAY HIGH AND INTRADAY PRICE INFLECTION POINTS. SO FOR EXAMPLE IF THE 52 WEEK HIGH IS MORE IMPORTANT THAN THE 5 DAY HIGH THEN THE 52 WEEK HIGH WILL GIVEN MORE WEIGHT.
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General Advice Disclosure: Please note that the advice contained herein is general advice and is for the purposes of education only. The risk of loss in trading futures contracts, commodity options, stocks, stock options and forex currencies can be substantial, and therefore investors should understand the risks involved in taking leveraged positions and must assume responsibility for the risks associated with such investments and for their results. You are reminded that past performance is no guarantee or reliable indication of future results. It has not been prepared taking into account your particular investment objectives, financial situation and particular needs.You should therefore assess whether the advice is appropriate to your individual investment objectives, financial situation and particular needs. You should do this before making an investment decision based on this general advice. You can either make the assessment yourself or seek the help of a professional adviser. This commentary is not a recommendation to buy or sell, but rather a guideline to interpreting the specified indicators. This information should only be used by investors who are aware of the risk inherent in securities trading. The Vulcan Report accepts no liability whatsoever for any loss arising from any use of this expert or its contents.liability whatsoever for any loss arising from any use of this expert or its contents. For Related news and other stories please visit - http://www.wideawakenews.com/ For Related videos on our Youtube channel please visit - http://www.youtube.com/user/pulsescan72 Be Sure to register for faster updates and commentaries at - BLOG 1: - http://pulsescan.blogspot.com/ BLOG 2: - http://seekingalpha.com/instablog/466159-pulsescan72/ BULLS make money... BEARS make money.... PIGS get slaughtered! "TAKE WHAT YOU CAN .........GIVE NOTHING BACK"!!

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