July 26 Market Update | Technical, Fundamental, News
Description:
An analysis for the week ahead.
Points of Interest:
Prior-Balance; Weak Highs and Lows; Dull, Emotional Participation; Nasdaq Weakness; Financials Intact.
Technical:
Broad-market equity indices struggled to hold onto recent gains, evidenced by the failed continuation higher.
Recapping last week’s action, on Monday, after a good amount of volatility contraction, the S&P 500 opened inside prior balance and tested lower, before rotating higher, into the gap zone left from the late February sell-off. Pre-open, on Tuesday, the market rallied, further discovering prices up into the gap zone. After the U.S. cash open, Tuesday’s activity was reminiscent of rebalancing to recent overextension.
On news that China would react to the closure of its consulate in Houston, Texas, Wednesday’s session saw prices push lower overnight, before turning and balancing out higher, into the close. On more news regarding geopolitics and initial jobless claims turning higher, Thursday’s session experienced a news-driven, emotional liquidation, with the Nasdaq leading lower.
Friday’s session opened near a high-volume area, balancing out and trading responsively, before closing and accepting prices lower.
Looking beyond broad market indices, the innovation-driven, technology-based sectors are showing signs of relative weakness, while other sectors, such as industrials, energy, and financials are finding more support.
Overall, the S&P is in balance. Absent positive news regarding geopolitical tensions, monetary policy, a vaccine, earnings, and stimulus, the market may find itself correcting through time, testing as low as the prior balance area, below $3,180, as more impactful earnings are released.
Scroll to bottom of document for non-profile charts.
Key Events:
Earnings; Durable Good Orders; Consumer Confidence; Initial Claims; GDP; Personal Income; Personal Spending; Employment Cost Index; Consumer Sentiment.
Fundamental:
Big tech antitrust probe report from Congress expected early fall. reut.rs/2D6h7xl
Nasdaq Composite, tech weakness comes alongside a weaker dollar. bit.ly/2Eh56Wl
5 charts illustrating U.S. economic trends amid the coronavirus pandemic. cnb.cx/3hGkFFo
General Motors Company (NYSE: GM), Volkswagen AG (OTC: VWAGY), Nissan Motor Co Ltd (OTC: NSANY) charge ahead with electric-vehicle plans. on.wsj.com/2WWxELx
Consulate closures mark escalation between U.S., China. reut.rs/3hPLRlx
Boeing Co (NYSE: BA) to delay 777X as demand drops for big jets. fxn.ws/3f28z83
Intel Corporation (NASDAQ: INTC) shares dive on manufacturing retreat. reut.rs/3f26ngP
American Express Company (NYSE: AXP) warns of slow spending recovery. reut.rs/302YwuY
Inflation-adjusted bonds are currently priced for very low inflation. bit.ly/3hCGW77
Proposal to suspend certain payroll taxes is a high priority. bit.ly/2ZZkMWQ
U.S. home prices, existing home sales rise toward records. bit.ly/2ZZkMWQ
Tesla Inc (NASDAQ: TSLA) chose Texas for the new Cybertruck factory. reut.rs/3jRNh0C
FDA orders unauthorized e-cigarettes removed from the market. bit.ly/301povx
China’s regulators take over insurers, financial institutions to cut risks. bit.ly/301povx
Supplemental unemployment benefits expire alongside new stimulus efforts. bit.ly/2X0zRpf
Housing strengthens while mortgage forbearance continues to decline. bit.ly/2X0zRpf
Biden may enact higher taxes, climate reform, and increased health care spending. bit.ly/32RF9XQ
EU leaders have agreed on an $860 billion stimulus package. bit.ly/32RF9XQ
Earnings beat expectations, but fundamentals remain weak. bit.ly/32RF9XQ
Commercial real estate market slips despite Federal Reserve action. bit.ly/32RF9XQ
The face value of defaulted non-financial corporate bonds jumped to a record. bit.ly/30NAX8X
American Airlines Group Inc (NASDAQ: AAL), United Airlines Holdings Inc (NASDAQ: UAL) to lay off workers. bit.ly/3f5LnWm
Dell Technologies Inc’s (NYSE: DELL) VMware spin-off increases uncertainty. bit.ly/30OwNgP
U.S. global investment banks preserved capital strength in Q2 amid credit provisions. bit.ly/30OwNgP
UnitedHealth Group Inc’s (NYSE: UNH) earnings, lower leverage is credit positive. bit.ly/30OwNgP
Sentiment: 26.1% Bullish, 27.1% Neutral, 46.8% Bearish as of 7/22/2020. bit.ly/330VhEp
Gamma Exposure: (Trending Lower) 1,281,189,859 as of 7/26/2020. bit.ly/2UpgtRE
Dark Pool Index: (Trending Lower) 42.9% as of 7/26/2020. bit.ly/2UpgtRE
Product Analysis:
S&P 500 (ES):
SPY 
SPX
Nasdaq 100 (NQ):
QQQ 
NDX
Russell 2000 (RTY):
IWM 
RUT
Gold (GC):
GLD 
GDX
Crude Oil (CL):
USO DBO USL
Treasury Bonds (ZB):
TLT
Disclaimer:
This is a page where I look to share knowledge and keep track of trades. If questions, concerns, or suggestions, feel free to comment. I think everyone can improve, especially me.
In no way should this post be construed as investment advice.
An analysis for the week ahead.
Points of Interest:
Prior-Balance; Weak Highs and Lows; Dull, Emotional Participation; Nasdaq Weakness; Financials Intact.
Technical:
Broad-market equity indices struggled to hold onto recent gains, evidenced by the failed continuation higher.
Recapping last week’s action, on Monday, after a good amount of volatility contraction, the S&P 500 opened inside prior balance and tested lower, before rotating higher, into the gap zone left from the late February sell-off. Pre-open, on Tuesday, the market rallied, further discovering prices up into the gap zone. After the U.S. cash open, Tuesday’s activity was reminiscent of rebalancing to recent overextension.
On news that China would react to the closure of its consulate in Houston, Texas, Wednesday’s session saw prices push lower overnight, before turning and balancing out higher, into the close. On more news regarding geopolitics and initial jobless claims turning higher, Thursday’s session experienced a news-driven, emotional liquidation, with the Nasdaq leading lower.
Friday’s session opened near a high-volume area, balancing out and trading responsively, before closing and accepting prices lower.
Looking beyond broad market indices, the innovation-driven, technology-based sectors are showing signs of relative weakness, while other sectors, such as industrials, energy, and financials are finding more support.
Overall, the S&P is in balance. Absent positive news regarding geopolitical tensions, monetary policy, a vaccine, earnings, and stimulus, the market may find itself correcting through time, testing as low as the prior balance area, below $3,180, as more impactful earnings are released.
Scroll to bottom of document for non-profile charts.
Key Events:
Earnings; Durable Good Orders; Consumer Confidence; Initial Claims; GDP; Personal Income; Personal Spending; Employment Cost Index; Consumer Sentiment.
Fundamental:
Big tech antitrust probe report from Congress expected early fall. reut.rs/2D6h7xl
Nasdaq Composite, tech weakness comes alongside a weaker dollar. bit.ly/2Eh56Wl
5 charts illustrating U.S. economic trends amid the coronavirus pandemic. cnb.cx/3hGkFFo
General Motors Company (NYSE: GM), Volkswagen AG (OTC: VWAGY), Nissan Motor Co Ltd (OTC: NSANY) charge ahead with electric-vehicle plans. on.wsj.com/2WWxELx
Consulate closures mark escalation between U.S., China. reut.rs/3hPLRlx
Boeing Co (NYSE: BA) to delay 777X as demand drops for big jets. fxn.ws/3f28z83
Intel Corporation (NASDAQ: INTC) shares dive on manufacturing retreat. reut.rs/3f26ngP
American Express Company (NYSE: AXP) warns of slow spending recovery. reut.rs/302YwuY
Inflation-adjusted bonds are currently priced for very low inflation. bit.ly/3hCGW77
Proposal to suspend certain payroll taxes is a high priority. bit.ly/2ZZkMWQ
U.S. home prices, existing home sales rise toward records. bit.ly/2ZZkMWQ
Tesla Inc (NASDAQ: TSLA) chose Texas for the new Cybertruck factory. reut.rs/3jRNh0C
FDA orders unauthorized e-cigarettes removed from the market. bit.ly/301povx
China’s regulators take over insurers, financial institutions to cut risks. bit.ly/301povx
Supplemental unemployment benefits expire alongside new stimulus efforts. bit.ly/2X0zRpf
Housing strengthens while mortgage forbearance continues to decline. bit.ly/2X0zRpf
Biden may enact higher taxes, climate reform, and increased health care spending. bit.ly/32RF9XQ
EU leaders have agreed on an $860 billion stimulus package. bit.ly/32RF9XQ
Earnings beat expectations, but fundamentals remain weak. bit.ly/32RF9XQ
Commercial real estate market slips despite Federal Reserve action. bit.ly/32RF9XQ
The face value of defaulted non-financial corporate bonds jumped to a record. bit.ly/30NAX8X
American Airlines Group Inc (NASDAQ: AAL), United Airlines Holdings Inc (NASDAQ: UAL) to lay off workers. bit.ly/3f5LnWm
Dell Technologies Inc’s (NYSE: DELL) VMware spin-off increases uncertainty. bit.ly/30OwNgP
U.S. global investment banks preserved capital strength in Q2 amid credit provisions. bit.ly/30OwNgP
UnitedHealth Group Inc’s (NYSE: UNH) earnings, lower leverage is credit positive. bit.ly/30OwNgP
Sentiment: 26.1% Bullish, 27.1% Neutral, 46.8% Bearish as of 7/22/2020. bit.ly/330VhEp
Gamma Exposure: (Trending Lower) 1,281,189,859 as of 7/26/2020. bit.ly/2UpgtRE
Dark Pool Index: (Trending Lower) 42.9% as of 7/26/2020. bit.ly/2UpgtRE
Product Analysis:
S&P 500 (ES):
SPY SPXNasdaq 100 (NQ):
QQQ NDXRussell 2000 (RTY):
IWM RUTGold (GC):
GLD GDXCrude Oil (CL):
USO DBO USLTreasury Bonds (ZB):
TLTDisclaimer:
This is a page where I look to share knowledge and keep track of trades. If questions, concerns, or suggestions, feel free to comment. I think everyone can improve, especially me.
In no way should this post be construed as investment advice.
This page is where we look to share knowledge and keep track of trades. Feel free to comment if you have questions, concerns, or suggestions. Everyone can improve, so speak up if you see something wrong!
This page is where we look to share knowledge and keep track of trades. Feel free to comment if you have questions, concerns, or suggestions. Everyone can improve, so speak up if you see something wrong!
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