Hello traders everywhere! Adam Hewison here, co-founder of MarketClub with your mid-day market update for Friday, the 22nd of June.
Make no mistake about it, Thursday was a disaster for the bulls in the equity markets. Watching crude oil fall below $80 a barrel and seeing gold crashing down, it was difficult to see what was going to keep stocks higher for the day. Yesterday's stock crash was a huge blow to the bullish case for stocks. As you know, our long-term monthly Trade Triangle has stayed negative on the equity markets and remains negative. We are now lower for the week in the S&P 500, the DOW and the NASDAQ. A flat to mediocre close today will be indicative of more pressure on the equity markets next week.
Gold is flat for the year and shows no indication of turning around anytime soon. Crude oil is also down on the year and is not closing well on the weekly charts.
We think we are going into more of a deflationary mode in the US, as interest rates are likely to stay low for a long time. Should we see a deflationary scenario play out, it's going to be harder for companies and banks to make money in that type of environment.
1 STOCK ON THE MOVE TODAY:
The following stock had a monthly SELL signal based on our Trade Triangle Technology and liquid volume of over one million shares traded daily.
ASSOCIATED ESTATES REALTY (AEC)
TODAY'S MARKET MOVING SECTORS and STOCKS:
Percentage changes in stocks are relative to the S&P 500
| CONSUMER GOODS: +0.33% | Biggest Winner GMCR +2.58% |
| SERVICES: +0.21% | Biggest Winner WAG +2.77% |
| HEALTHCARE: +0.69% | Biggest Winner ILMN +3.36% |
| ENERGY: -0.07% | Biggest Loser NUAN -3.37% |
| TECHNOLOGY: +0.86% | Biggest Winner JPM +2.59% |
| FINANCIAL: +0.59% | Biggest Winner VMI +2.10% |
| INDUSTRIAL GOODS: +0.03% | Biggest Winner FF +4.06% |
| BASIC MATERIALS: +0.09% | Biggest Winner UAN +14.37% |
| UTILITIES: +0.36% | Biggest Winner HTM +8.18% |
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
I went shopping the other day for clothes and told the clerk I wanted a deflation discount, she laughed at me. Same at the dentist, I demanded he charge less this year for a cleaning because of deflation. I called my health insurer and said no, I won't accept the 15% rise you just sent me, I want the bill to reflect deflation. I was thinking of going to the local car lot and requesting a deflation reduced car, and was laughed out of the showroom. Then went for lunch at Betty's Diner, and pointed at the $13.99 lunch special, demanding a deflation discount. They told me to leave.
It was after all of this that I figured out we are going through stagflation, after looking up the definition.