Stock Market Blog -Aug 3rd

It was a week full of news events, and we saw the market drop for the first time in a long time -better than expected GDP, Fed meeting, monthly unemployment report, Chicago PMI, Argentina bond default, Gaza crisis, Ukraine crisis, etc. Interestingly enough, Bonds also dropped -so did Oil and Gold. All the 'experts' are now calling for a bigger market drop.

New all time highs:   EXPE, 
All time lows:   -

Pops:   BYI , FDO, LNKD, TWTR   Drops:  

Next week:  Economic reports,  

Earnings:     CHK, DIS, GRPN, KORS, ODP

Market Commentary

The DOW and the S&P500 broke down from the recent up-trend. The Russell was already broken. This could indicate further weakness ahead, so you might be able to sell rallies. If you use the 50MA as a trend guide, we now have 2 days under it. Also, we are now a bit oversold, so trading a small bounce might work.

Implied Volatility in the Options market is trending higher. If you are an Options trader, Credit Spreads continue to be attractive here, especially with earnings events. You can also trade Put credit spreads for a small bounce.

This week's charts:

S&P 500 -first signs of a breakdown
10yr Interest Rates
Labor Force Participation Rate (10 year chart)

Commodities/Futures (charts):
Crude Oil had a big drop, closing around $97.88 -finally under $100!

Natural Gas was mostly unchanged, closing near 3.80
Gold dropped, closing at $1295 -under $1300 again

The 30 year Bond dropped, closing near 137.94

The US Dollar was up a bit, closing near 81.37

NEWS:

Worst weekly drop for S&P 500 in more than two years
Warning: That plunge in stocks is just the beginning
3 market warning signs predict 20% stock tumble

Earnings Expectations For The Week Of August 4

Jobs numbers fall short of reality