May 31 Market Update | Technical, Fundamental, News
Description:
An analysis for the week ahead.
Points of Interest:
2975-2900 Balance Area; Friday Spike.
Technical:
Risk-on sentiment in all major indices.
Monday gapped and accepted prices above the prior balance area.
Tuesday’s selling diverged from breadth and broad market sentiment.
Wednesday opened higher, reflecting underlying market sentiment in the prior session, but sold off immediately, testing and rejecting the prior balance area. After rejection, the market squeezed higher and closed above the open, the most positive outcome.
Thursday’s session continued higher, not supported by breadth and large lot activity.
Friday tested lower on news-driven intraday volatility, rejected, and then spiked higher into the close.
Opening within the spike, we balance and validate prices. Opening and remaining above the spike would be the most positive outcome. Opening below the spike base (i.e., $3030) would be the most negative outcome.
Taking out Friday’s low of $2992.00, important references on the downside include $2975 and $2860. A successful break above $3065.50, important references on the upside include $3090, $3111, and $3135.
Scroll to bottom of document for non-profile charts.
Fundamental:
Key Events: Nonfarm Employment; Initial Claims; Manufacturing and Nonmanufacturing Surveys; Trade Deficit; Factory Orders; Vehicle Sales; Productivity And Costs; Construction Spending.
Ratings agency Fitch suggests Global Recession is bottoming out. bit.ly/3dfnETA
Michael Burry may be wrong about the index bubble. bit.ly/2TWUsZX
House loosens PPP rules; Treasury, SBA set aside more funds for lenders. on.wsj.com/3gELCd1
Airlines tackle social distancing with new rules. bit.ly/2XKMpAx
Airport traffic picks up as lockdowns ease. bit.ly/2yOSS57
Which economies are reopening and why COVID killed globalization. bit.ly/2XKMHaG
Weak demand curbs China factory activity. yhoo.it/2XkpKvK
Bezos buying a stake in U.K. digital supply chain startup. cnb.cx/2TYS9Wq
AMZN
Protests rage across America. cnn.it/2TTy5ET
OPEC, Russia bargain over extended output cuts until end of 2020. reut.rs/2Xgd3Cm
ECB to raise quantitative easing purchases under PEPP program. bit.ly/3dlBfsq
Investment-grade bond issuance to slow considerably. bit.ly/3dlBfsq
PPP failed to get money to industries and areas most in need. bit.ly/2zEdEF7
Lumber is higher on increased demand (i.e., home repairs, renovations, building). bloom.bg/2TTynvt
Home sales drop 18%, while decline in inventory pushes prices to a record high. cnb.cx/2BgCTNX
Remote work to spark a housing boom in suburbs and smaller cities. on.wsj.com/3dlxjbc
Energy Transfer LP ($ET) warns of coming job cuts. reut.rs/2AppT8i
ET
Kohl’s ($KSS) eyes trouble as sales plummet, digital business falls short. bit.ly/2TXtRvI
KSS
Tensions with China escalate over Hong Kong’s autonomy. bit.ly/3expj7l
U.S. considers COVID-19 coronavirus bill next month. bit.ly/3gGtXl5
COVID-19 crisis may trigger a rolling pension collapse. bit.ly/2Mldzsh
Study supports the wide usage of Gilead’s ($GILD) Remdesivir. bit.ly/2ZQTPVC
GILD
Moderna begins new COVID-19 vaccine study. on.mktw.net/36M2KJd
MRNA
Lower aggregate taxation; higher taxes will come; no bailout of pre-covid junk. bit.ly/2zMf14u
NVIDIA ($NVDA) faces positive results, outlook. bit.ly/2BdXoe5
NVDA
Cboe Global Markets ($CBOE) expansion to Canada a credit positive. bit.ly/3dmH4pF
CBOE
Fairfield, Alabama’s bankruptcy brings back familiar Chapter 9 themes. bit.ly/3dmH4pF
Negative April credit card ABS performance confirms virus risks. bit.ly/3dmH4pF
Global venture funding through the virus, late-stage stays strong. bit.ly/3gIw2xg
Nasdaq CIO on policing foreign listings. bit.ly/3eGX865
Sports betting stocks see a surge, unhurt by pandemic. bit.ly/36LsPZ3
Money market inflows pause, validating rotation into risk. bit.ly/2XjKqEd
Discussion regarding the need to implement an OPEC+ exit strategy. reut.rs/2TVLw72
Former Cisco Chair and CEO talks leading, growing through a crisis. bit.ly/2XJXWA1
CSCO
Data, statistics on how the virus is impacting local business revenues. bit.ly/2TV6h30
Expedia Group ($EXPE) commits $275M to help industry rebound. bit.ly/3dlSUAf
EXPE
Rising home sales show American’s are looking past the virus. bit.ly/2XN3o5m
Dollar General ($DG), Dollar Tree ($DLTR) to outperform earnings. bit.ly/2Mi0jox
DG
DLTR
Sentiment: 33.1% Bullish, 24.8% Neutral, 42.1% Bearish as of 5/31/2020. bit.ly/330VhEp
Gamma Exposure: (Trending Higher) 2,565,182,968 as of 5/29/2020. bit.ly/2UpgtRE
Dark Pool Index: (Trending Higher) 52.3% as of 5/29/2020. bit.ly/2UpgtRE
Product Analysis:
ES:
SPY
SPX
NQ:
QQQ
NDQ
RTY:
IWM
RUT
YM:
DIA
DJI
NYA:
NYA
GC:
GLD
CL:
USO
USL
DBO
NG:
UNG
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:
2975-2900 Balance Area; Friday Spike.
Technical:
Risk-on sentiment in all major indices.
Monday gapped and accepted prices above the prior balance area.
Tuesday’s selling diverged from breadth and broad market sentiment.
Wednesday opened higher, reflecting underlying market sentiment in the prior session, but sold off immediately, testing and rejecting the prior balance area. After rejection, the market squeezed higher and closed above the open, the most positive outcome.
Thursday’s session continued higher, not supported by breadth and large lot activity.
Friday tested lower on news-driven intraday volatility, rejected, and then spiked higher into the close.
Opening within the spike, we balance and validate prices. Opening and remaining above the spike would be the most positive outcome. Opening below the spike base (i.e., $3030) would be the most negative outcome.
Taking out Friday’s low of $2992.00, important references on the downside include $2975 and $2860. A successful break above $3065.50, important references on the upside include $3090, $3111, and $3135.
Scroll to bottom of document for non-profile charts.
Fundamental:
Key Events: Nonfarm Employment; Initial Claims; Manufacturing and Nonmanufacturing Surveys; Trade Deficit; Factory Orders; Vehicle Sales; Productivity And Costs; Construction Spending.
Ratings agency Fitch suggests Global Recession is bottoming out. bit.ly/3dfnETA
Michael Burry may be wrong about the index bubble. bit.ly/2TWUsZX
House loosens PPP rules; Treasury, SBA set aside more funds for lenders. on.wsj.com/3gELCd1
Airlines tackle social distancing with new rules. bit.ly/2XKMpAx
Airport traffic picks up as lockdowns ease. bit.ly/2yOSS57
Which economies are reopening and why COVID killed globalization. bit.ly/2XKMHaG
Weak demand curbs China factory activity. yhoo.it/2XkpKvK
Bezos buying a stake in U.K. digital supply chain startup. cnb.cx/2TYS9Wq
AMZN
Protests rage across America. cnn.it/2TTy5ET
OPEC, Russia bargain over extended output cuts until end of 2020. reut.rs/2Xgd3Cm
ECB to raise quantitative easing purchases under PEPP program. bit.ly/3dlBfsq
Investment-grade bond issuance to slow considerably. bit.ly/3dlBfsq
PPP failed to get money to industries and areas most in need. bit.ly/2zEdEF7
Lumber is higher on increased demand (i.e., home repairs, renovations, building). bloom.bg/2TTynvt
Home sales drop 18%, while decline in inventory pushes prices to a record high. cnb.cx/2BgCTNX
Remote work to spark a housing boom in suburbs and smaller cities. on.wsj.com/3dlxjbc
Energy Transfer LP ($ET) warns of coming job cuts. reut.rs/2AppT8i
ET
Kohl’s ($KSS) eyes trouble as sales plummet, digital business falls short. bit.ly/2TXtRvI
KSS
Tensions with China escalate over Hong Kong’s autonomy. bit.ly/3expj7l
U.S. considers COVID-19 coronavirus bill next month. bit.ly/3gGtXl5
COVID-19 crisis may trigger a rolling pension collapse. bit.ly/2Mldzsh
Study supports the wide usage of Gilead’s ($GILD) Remdesivir. bit.ly/2ZQTPVC
GILD
Moderna begins new COVID-19 vaccine study. on.mktw.net/36M2KJd
MRNA
Lower aggregate taxation; higher taxes will come; no bailout of pre-covid junk. bit.ly/2zMf14u
NVIDIA ($NVDA) faces positive results, outlook. bit.ly/2BdXoe5
NVDA
Cboe Global Markets ($CBOE) expansion to Canada a credit positive. bit.ly/3dmH4pF
CBOE
Fairfield, Alabama’s bankruptcy brings back familiar Chapter 9 themes. bit.ly/3dmH4pF
Negative April credit card ABS performance confirms virus risks. bit.ly/3dmH4pF
Global venture funding through the virus, late-stage stays strong. bit.ly/3gIw2xg
Nasdaq CIO on policing foreign listings. bit.ly/3eGX865
Sports betting stocks see a surge, unhurt by pandemic. bit.ly/36LsPZ3
Money market inflows pause, validating rotation into risk. bit.ly/2XjKqEd
Discussion regarding the need to implement an OPEC+ exit strategy. reut.rs/2TVLw72
Former Cisco Chair and CEO talks leading, growing through a crisis. bit.ly/2XJXWA1
CSCO
Data, statistics on how the virus is impacting local business revenues. bit.ly/2TV6h30
Expedia Group ($EXPE) commits $275M to help industry rebound. bit.ly/3dlSUAf
EXPE
Rising home sales show American’s are looking past the virus. bit.ly/2XN3o5m
Dollar General ($DG), Dollar Tree ($DLTR) to outperform earnings. bit.ly/2Mi0jox
DG
DLTR
Sentiment: 33.1% Bullish, 24.8% Neutral, 42.1% Bearish as of 5/31/2020. bit.ly/330VhEp
Gamma Exposure: (Trending Higher) 2,565,182,968 as of 5/29/2020. bit.ly/2UpgtRE
Dark Pool Index: (Trending Higher) 52.3% as of 5/29/2020. bit.ly/2UpgtRE
Product Analysis:
ES:
SPY
SPX
NQ:
QQQ
NDQ
RTY:
IWM
RUT
YM:
DIA
DJI
NYA:
NYA
GC:
GLD
CL:
USO
USL
DBO
NG:
UNG
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.
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 (myself especially), so if you see something wrong, speak up.
