Highlights:

Market Recap: The S&P 500 finished up 0.41% yesterday. Oil rallied on heightened tensions between Iran and Russia. West Texas Crude oil was up 2.23%. The benchmark 10 year yield dropped 3 basis points.

Economic Data: Retail sales came out this morning and were up 0.5% month over month. Expectations were for an increase of 0.6% month over month. Industrial production also comes out this morning at 9:15AM.

Economic Data

 

Economic Data

 

Lumber: Lumber rallied 5.36% yesterday and closed 2.5% above the 200 day moving average.  After being in a negative trend since July 2018, it finally broke to a positive trend on the recent move.  This is bullish for equities as lumber prices have been a leading indicator.

Lumber

 

Market Internals:  The index that tracks the percentage of stocks above the 50 day moving average in the NYSE, gave a double top buy signal on the point and figure chart yesterday.  This is indicative of continued strength internally. 

Market Internals

 

Advance-Decline: The cumulative advance-decline line broke to all-time highs yesterday for the S&P 500. This is typically a leading indicator to price itself. This indicates that prices could break to new highs as well.

Advance-Decline

 

Russell 2000: The Russell 2000 has been a clear laggard this year.  It is well below its 2018 peak and has showed continued weakness relative to large caps.  Yesterday, small cap stocks rallied against large caps and demonstrated strong relative strength.  The Russell 2000 was up over 1% while the S&P 500 was only up 0.41%.  If strength continues, and the Russell 2000 can move into a positive trend, this could push equity markets upward.  This would also clear one of the major divergences urging caution.

Russell 2000

 

Futures Summary: 

Futures Summary

 

News from Bloomberg:

American officials released a video they said shows Iran was involved in the attack on an oil tanker near the Persian Gulf yesterday. The images are of an Iranian boat removing an unexploded mine from one of the ships, U.S. Central Command said. Adding to the intrigue, the president of the tanker operator said his crew saw a projectile hit the ship and believed it was probably not a mine.

Hundreds of companies, including Walmart, Target and Macy's, urged President Trump not to impose extra levies on Chinese goods. More than 500 firms across a range of industries signed a letter expressing concern about an escalation of the trade war. They urged the president to return to the negotiating table. 

Trade war concerns prompted Broadcom to cut its annual sales forecast. The spat between China and the U.S., including the Huawei ban, will probably wipe out a rebound in orders it had been predicting for the second half of the year. The company's shares tumbled in early trading.

Activist investor Dan Loeb disclosed a $1.5 billion stake in Sony, saying the shares trade at roughly half of their intrinsic value. His Third Point urged the company to sell its insurance unit, offload holdings like Spotify and spin off semiconductors. While that's a good idea, he failed to address what should come next, Bloomberg Opinion's Tim Culpan writes. Sony's shares climbed in Tokyo.

U.S. stock-index futures fell with global equities after Chinese data disappointed and Broadcom cut its forecast. Nasdaq contracts slid and tech companies tumbled in Europe. Treasuries rose, driving 10-year yields below 2.07%. Gold jumped and the yen outperformed. Oil fell with most industrial metals.

WealthShield is a division of Emerald Investment Partners, an SEC Registered Investment Advisor. Advisory services are only offered to clients or prospective clients where WealthShield and it’s representatives are properly licensed or exempt from licensure. Past performance is no guarantee of future returns. Investing involves risk and possible loss of principal capital. No advice may be rendered by WealthShield unless a client service agreement is in place. Before investing, consider your investment objectives and WealthShield’s charges and expenses.

Analysis feed

FXStreet Trading Signals now available!

Access to real-time signals, community and guidance now!

Latest Analysis


Latest Forex Analysis

Editors’ Picks

EUR/USD defends gains above 1.1300 amid broad dollar recovery

EUR/USD defends gains above 1.1300 amid a broad-based US dollar recovery. The shared currency remains at the mercy of the broader market sentiment as the data docket is light on Monday. COVID-19 stats in focus. 

EUR/USD News

GBP/USD batting to extend gains beyond 1.2600

Risk-on mood limits the dollar’s bullish potential. GBP/USD bounces from daily lows, but Brexit concerns weigh on Sterling. BOE Governor Bailey's speech awaited.

GBP/USD News

XAU/USD inches closer to multi-year highs, trades around $1,810

The XAU/USD pair registered its highest weekly close since September of 2011 at $1,799 on Friday and continued to push higher on Monday.

Gold News

Dominance war to push Ethereum to $270

The Altcoin segment is still in full swing while the crypto board leaders, Bitcoin and Ethereum, remain stuck at the same levels as in recent weeks. The dispute for market share, or dominance in technical terms, remains at a point of maximum tension. 

Read more

WTI breaches $40 mark as talks of OPEC+ output cuts easing weigh

WTI (August futures on Nymex) extends Friday’s sell-off into the European trading this Monday, following a brief consolidation seen above $40 mark earlier in the Asian session.

Oil News

Forex Majors

Cryptocurrencies

Signatures