Hello traders everywhere! Adam Hewison here, co-founder of MarketClub with your mid-day market update for Monday, the 23rd of July.
With all eyes on Spain and the dismal performance in Europe this morning, US equities are under heavy pressure. The question is, is this a buying opportunity? We don't think so. As we were saying all last week, the equity markets are coming off a cyclic high period and should be on the defensive for most of this week.
Many companies will be reporting earnings this week, including Apple and Facebook.
Key levels to watch this week:
S&P 500 - key level $1,325
DOW - key level $12,645
NASDAQ - key level $2,837
If these levels are broken on the downside, look for the market to accelerate and be on the defensive for the next four to five weeks.
Special note: This report was written before the US markets opened for trading. I will be traveling back to corporate headquarters today and will be reporting from headquarters tomorrow at the usual time. Have a great trading day.
DAILY PERCENTAGE CHANGES BY SECTOR:
| CONSUMER GOODS: -0.63% | Biggest Loser PAY -4.52% |
| SERVICES: -1.00% | Biggest Loser LVS -5.55% |
| HEALTHCARE: -1.02% | Biggest Loser HUM -2.41% |
| ENERGY: -1.21% | Biggest Loser EOG -3.96% |
| TECHNOLOGY: -1.57% | Biggest Loser MSFT -3.12% |
| FINANCIAL: -0.75% | Biggest Loser BAC -2.13% |
| INDUSTRIAL GOODS: -0.70% | Biggest Loser BA -2.77% |
| BASIC MATERIALS: -1.67% | Biggest Loser FCX -4.30% |
| UTILITIES: -0.66% | Biggest Loser FE -0.96% |
Now, let's analyze the major markets and stocks on the move using MarketClub's Trade Triangle Technology. Click Here to view today's video
SPY gave a evening star trend reversal formation on Friday, the CRB and crude oil with a Harami same day. Still a lot of die hard bulls around I am thinking so may get a short covering oversold pre-FOMC bounce into 50% , or 100% of the gap by 7/30, at least I am hoping, but it may just 'drop like a rock' without doing that. I am sticking with the TZA puts having taken profits on the SPY for now, as Russell 2000 is the weakest index. Also, playing some FB puts looking for at least 26, here is hoping...