Daily Market Recap and Premium report delivered before the market open. The premium report includes analysis of ETFs and S&P 500 stocks with focus on short-term high probability setups. Click here for an example of a daily premium report.
Note: I will be on vacation from August 25 through September 5. The next Market Recap and premium report will be posted on September 8. Have a great weekend and also a great Labor Day holiday!
Market Recap - August 21, 2014
The S&P 500 rose 0.29%, NASDAQ gained 0.12% after some early profit taking, the Dow added 0.36% and the Russell 2000 was up 0.22%.
Bond prices broke a 3-day losing streak with the 10-Year Note yield falling to 2.41%. Crude oil prices resumed their downtrend with spot light crude dropping 2.61%. Precious metals weakness continued with gold losing 1.18% and oversold silver falling 0.18%. The U.S. dollar fell slightly versus the Euro to close in New York at $1.3282 but stayed below the psychological level of $1.3300.
Comment: Market participants are looking for hints from the FED today but it appears that there will be no surprises as the economic recovery primarily rests on equity market performance. Although the FED has warned about signs of bubbles forming in some sectors, they may wait before hitting the breaks. The biggest risks come from geopolitical conflicts and especially from the Ukraine front but it appears that Nash equilibrium has been reached between the two major players and unless more sanctions are announced or there is a military intervention, the conflict will be contained locally with no major direct impact on financial markets.
Short-term Technical and Quantitative Analysis
Below is a table with 10 high probability setups in 10 major ETFs, 5 long and 5 short. There are 4 open positions, two long and two short: