Avalanche Of Big Data Ahead
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July 29, 2014

7-29-2014 3-45-45 PM waiting 2

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Wednesday will begin an avalanche of important news events and data that will last all week culminating with the Employment Report Friday. Tuesday’s news was no slouch as S&P Case-Shiller Home Price Index fell to a seasonally adjusted miss of -0.3% vs 0.4% expected & prior 0.2%. However, Consumer Confidence leaped higher to 90.9 vs 85.5 expected & prior 85.2—a real positive. This was the highest this index has been since October 2007 and we know what happened after that.

Last night it seems China is getting with the QE routine as the PBOC announced it would give CNY one trillion in Pledged Support Lending to the China Development Bank. This was the news investors there had been expecting.

There are some signs that one of the hotter real estate markets, San Francisco, is starting to see their housing bubble decline as the chart below reveals.

7-29-2014 5-08-50 PM SF Case-Shiller

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

There are some dramatic occurrences which include, among many other things: the sharpest drop in homeownership in 18 years, per AP 35% or 77M Americans are now badgered by debt collectors per the Urban Institute, median household income continues to decline, according to the Russell Sage Foundation the median American household has lost 1/3 of their wealth over the past 10 years, auto and student loan debt have never been greater, while unemployment is improving we still have problems with many who’ve disappeared from the labor force, while stock markets are much higher since 2007 this has been due to the disappearing effect of QE and now ZIRP sustains markets given cheap interest rates allowing for stock buybacks reducing float, the world hasn’t been this violent is quite some time and so forth.  

The stock market continued to move higher setting record after record as investors don’t know what else to do with their money given low alternative yields. However Tuesday markets seemed a little more on edge as so much data will be coming Wednesday, Thursday and Friday. Some are blaming proposed sanctions on Russia but many regard these as light.

Leading market sectors higher included: Healthcare (XLV), Biotech (IBB), Metals & Mining (XME), Telecom (IYZ), Global Telecommications (IXP),South Korea (EWY), Hong Kong (EWH), Coal Producers (KOL), Natural Gas (UNG), Dollar (UUP) and Bonds (TLT).

Leading market sectors lower included: Financials (XLF), Gold Miners (GDX), Materials (XLB), Industrials (XLI), Utilities (XLU), Consumer Staples (XLP), REITS (IYR), Emerging Markets (EEM), Thailand (THD), Turkey (TUR), Brazil (EWZ), Russia (RSX), Solar (TAN), Crude Oil (USO) and Base Metals (DBB).

The top 20 market movers by percentage change in volume whether rising or falling is available daily.

Guest columnist Scott Murray dissects and analyzes iShares Transportation ETF (IYT).

Volume picked up a little from Monday on afternoon selling. Breadth per the WSJ was negative. (Note: The McClellan Summation Oscillator has shown markets in correction mode for some time now.)

7-29-2014 5-10-44 PM Diary

Charts of the Day
  • SPY 5 MINUTE

    SPY 5 MINUTE

  • SPX WEEKLY

    SPX WEEKLY

  • INDU WEEKLY

    INDU WEEKLY

  • RUT WEEKLY

    RUT WEEKLY

  • NDX WEEKLY

    NDX WEEKLY

  • XLF WEEKLY

    XLF WEEKLY

  • XLI WEEKLY

    XLI WEEKLY

  • XLV WEEKLY

    XLV WEEKLY

  • XLB WEEKLY

    XLB WEEKLY

  • SOCL WEEKLY

    SOCL WEEKLY

  • FDN WEEKLY

    FDN WEEKLY

  • XLU WEEKLY

    XLU WEEKLY

  • IBB WEEKLY

    IBB WEEKLY

  • IYT WEEKLY

    IYT WEEKLY

  • IYR WEEKLY

    IYR WEEKLY

  • TLT WEEKLY

    TLT WEEKLY

  • UUP WEEKLY

    UUP WEEKLY

  • FXE WEEKLY

    FXE WEEKLY

  • GLD WEEKLY

    GLD WEEKLY

  • GDX WEEKLY

    GDX WEEKLY

  • DBB WEEKLY

    DBB WEEKLY

  • USO WEEKLY

    USO WEEKLY

  • DBA WEEKLY

    DBA WEEKLY

  • DBC WEEKLY

    DBC WEEKLY

  • VEA WEEKLY

    VEA WEEKLY

  • VGK WEEKLY

    VGK WEEKLY

  • VWO WEEKLY

    VWO WEEKLY

  • ARGT WEEKLY

    ARGT WEEKLY

  • EWZ WEEKLY

    EWZ WEEKLY

  • RSX WEEKLY

    RSX WEEKLY

  • EPI WEEKLY

    EPI WEEKLY

  • FXI WEEKLY

    FXI WEEKLY

  • NYMO DAILY

    NYMO DAILY

    The NYMO is a market breadth indicator that is based on the difference between the number of advancing and declining issues on the NYSE. When readings are +60/-60 markets are extended short-term.


     

  • NYSI DAILY

    NYSI DAILY

    The McClellan Summation Index is a long-term version of the McClellan Oscillator. It is a market breadth indicator, and interpretation is similar to that of the McClellan Oscillator, except that it is more suited to major trends. I believe readings of +1000/-1000 reveal markets as much extended.


     

  • VIX WEEKLY

    VIX WEEKLY

    The VIX is a widely used measure of market risk and is often referred to as the "investor fear gauge". Our own interpretation is highlighted in the chart above. The VIX measures the level of put option activity over a 30-day period. Greater buying of put options (protection) causes the index to rise.

Closing Summary

Wednesday leads to ADP Payroll Report, GDP and Fed meeting outcome, Thursday is Jobless Claims Employment Cost Index, and Chicago PMI and Friday Employment Report, Personal Income and Spending, PMI Manufacturing Index, Consumer Sentiment, ISM Mfg Index and Construction Spending.

All the aforementioned data plus earnings and whatever geopolitical events may occur, should fill anyone’s need for economic information.

After the close Twitter (TWTR) reported results which led to the stock climbing nearly 30%.

Let’s see what happens.

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Headshot David Fry xsmall

Dave Fry is founder and publisher of ETF Digest and has been covering U.S. and global ETFs since 2001.

He is the author of "Create Your own ETF Hedge Fund: A Do-It-Yourself Strategy for Private Wealth Management" published by Wiley Finance and "The Best ETFs: U.S. Equities, A Companion Guide to Building Your ETF Portfolio".

 



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Disclaimer

ETF Digest™
 

Disclaimer: The charts and comments are only the author's view of market activity and aren't recommendations to buy or sell only any security. Market sectors and related ETF's are selected based on his opinion as to their importance in providing the viewer a comprehensive summary of market conditions for the featured period. Chart annotation's aren't predictive of any future market action rather they only demonstrate the author's opinion as to a range of possibilities going forward. More detailed information, including actionable alerts, are available to subscribers at www.etfdigest.com

 

ETF Digest

Market Summary
NYSE Composite Index S&P 500 Index Nasdaq Composite Index Russell 2000 Small Cap Index NYSE Composite Index S&P 500 Index Nasdaq Composite Index Russell 2000 Small Cap Index 10 Year Treasury Note Yield Gold Bugs Index Morgan Stanley High Tech 35 Index Market Chart
Commodity Quote Change Change % NY
Gold1,307.302.800.21 % 08:14
WTI Crude Futr101.04-0.63-0.62 %17:14
Index Quotes Change Change % Local
CRB296.64-1.67-0.56 %17:28
US Dollar81.310.000.00 % 17:00
Index Quotes Change Change % Local
VIX13.280.725.73 % 16:14
MSCI Value Daily MTD YTD
Brazil2532.089-0.78 %5.93 % 14.15 %
Russia657.873-0.28 %-11.02 %-16.40 %
India500.7390.00 %1.65 % 22.94 %
China66.0750.45 %7.45 % 4.71 %