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No matter who wins the White House, the next president is increasingly likely to face an unusual hurdle in their first days in office: a divided Congress.

Each of the last five newly elected presidents has entered office with his party holding the majority in the House and Senate, opening the door to an aggressive agenda. But now, Democrats need a net gain of just four seats to reclaim the House majority, while Republicans need just one more flip, with two big opportunities in conservative states, to win back the Senate.

Such a split verdict would be historic: The House and Senate have never both switched majorities in opposite directions in any election since the direct election of senators began 110 years ago. It would also guarantee that Kamala Harris or Donald Trump would enter the Oval Office on Jan. 20 without his or her party in full control of Congress.

From Bill Clinton in 1993 to Joe Biden in 2021, the most recent presidents took office with their party fully in charge on Capitol Hill and began to advance their most important agenda items.

Influential Capitol Hill veterans from that era said the winner in November could be immediately reined in by an opposing party holding the House or Senate, given this politically combustible time when bipartisan dealmaking has been limited to modest measures or must-pass legislation.

“A split Congress at this point means a legislative dead-end for major policy initiatives legislatively and would likely further enhance the subordination of the legislative to the executive branch, which will govern through executive actions,” said John Lawrence, who served as chief of staff in 2009 and 2010 for House Speaker Nancy Pelosi (D-Calif.) during a productive early part of Barack Obama’s presidency.

“Bipartisan lawmaking is possible, but it’s not going to be anywhere on the scale of what we’re used to,” said Brendan Buck, who served as counselor to House Speaker Paul D. Ryan (R-Wis.) in 2017 and 2018 during the early phase of Trump’s presidency.

In 1989, George H.W. Bush was the last president to enter office without his party in control of both chambers. The Democratic majorities in both the House and Senate limited Bush’s domestic agenda to mostly tax-and-spending battles, including a 1990 budget deal that undercut his campaign pledge of “Read my lips: no new taxes.”

Instead, he largely focused on foreign policy matters, and lost his reelection bid in 1992.

Trump’s agenda, as laid out on his campaign website, is light on issues that require congressional action; it focuses more on executive actions such as raising tariffs and securing the border.

But priorities such as extending many of the rates set in his 2017 tax law, as well as new cuts for corporations and the wealthy, would be curtailed by a House Democratic majority and a speakership held by Hakeem Jeffries (D-N.Y.), who is currently House minority leader.

Likewise, Harris’s agenda includes certain items that need a stamp of approval from Congress, including a $6,000 child tax credit; a $25,000 subsidy for first-time home buyers; and new limits on the costs of prescription drugs.

Those would be very difficult to get approved if she’s dealing with “Senate Majority Leader John (TBD).” Sens. John Thune (R-S.D.) and John Cornyn (R-Tex.) are the leading contenders to become Senate GOP leader after Minority Leader Mitch McConnell (R-Ky.) steps down in November. Either would outright block Harris’s proposals or force enough revisions so that a majority of Republicans could support the final product.

This dynamic creates the potential for a continuation of the gridlock of the past two years in Washington, when President Joe Biden spent so much time struggling with the House GOP majority over fiscal matters. Next year requires another congressional hike of the nation’s borrowing limit, plus addressing the expiration of the Trump tax cuts and the annual brutal fight over funding for federal agencies.

“In short, next year a new president will struggle to move a big agenda in a divided Congress and will have to devote much of the year to dealing with tax and spending issues,” said Antonia Ferrier, who served in 2017 and 2018 directing a strategic communications office for McConnell.

David Krone, who served as a senior adviser to Senate Majority Leader Harry M. Reid (D-Nev.) in 2009 and 2010, recalled how his boss and Pelosi, the House speaker, used their large majorities to ride herd on their committee chairs to produce a massive economic stimulus package, the Affordable Care Act and the Dodd-Frank law rewriting oversight of Wall Street. Those served as some of Barack Obama’s grandest presidential achievements.

“Now, it’s reversed. The Senate majority leader and House speaker will have to rely more on a bottom-up approach. Sure, they can have huge influence, but deals in the Senate will have to come together through some cooperation,” Krone said, noting that many prominent dealmakers of the past decade will no longer serve in the Senate next year.

These prognostications could all be for naught if one party pulls off the political trifecta of winning the White House along with the House and Senate majorities. That would most likely require Harris or Trump winning convincingly enough to have coattails that would help down-ballot candidates win in very unfavorable regions.

The presidential race remains a toss-up. Harris’s momentum since taking over for Biden on July 21 has helped her claim leads in national polls, but she remains statistically tied in five battleground states in the fight for the electoral college, according to The Washington Post’s analysis.

In the House, Harris’s candidacy could be the jolt Democrats need in blue states like California and New York.

Of the 13 toss-up races Republicans are defending, as rated by the Cook Political Report With Amy Walter, 10 are in four states where Biden won by more than 15 percentage points four years ago. Harris will probably match or exceed that margin in November.

Democrats could win enough seats just in those friendly states to claim the House majority. In the Senate, however, Republicans have the much better political terrain, already holding 49 seats and the Democrats all but conceding West Virginia to them with the retirement of Sen. Joe Manchin III (I).

Barring a major upset of either Sens. Ted Cruz (R-Tex.) or Rick Scott (R-Fla.), Democrats need Harris to win and defend every remaining seat of theirs, including those of Sens. Jon Tester (Mont.) and Sherrod Brown (Ohio), states where Trump might win by double-digit margins.

Facing a GOP Senate could cause immediate headaches for a Harris administration. Biden managed to efficiently get every single Cabinet secretary confirmed by the spring of 2021, as well as Supreme Court Justice Ketanji Brown Jackson a year later, with the narrowest of Senate majorities.

Harris would have the luxury of asking some secretaries and deputies to remain in their posts, but history suggests many would prefer to move on.

Lawrence recalled how different times were in 2001, when George W. Bush became president with similarly narrow majorities for Republicans. He won a sizable bloc of Democrats for his 2001 tax cuts and a majority for his No Child Left Behind Act.

By the time that education bill got signed into law, Democrats had taken over the Senate majority because of a party switch, but it did not matter. Bush had won the support of Sen. Edward M. Kennedy (D-Mass.) and Rep. George Miller (Calif.), the top Democrats on education policy.

In 2009, Obama briefly had a 60-seat majority in the Senate and a bulging House majority with more than 255 Democrats. Fearing political extinction, Republicans decided to almost unanimously oppose every big presidential agenda item.

That required legislative tacticians to maneuver some measures to pass on a fast-track process. “Senator Reid had the ability to shape what he wanted. Same with Speaker Pelosi,” Krone recalled.

Likewise, Republicans had some successes and some failures in 2017, when they tried a similar go-it-alone approach. They failed miserably in their attempt to repeal the ACA despite seven years of promising to do so, but they succeeded in ramming through a nearly $2 trillion tax cut plan without a single Democratic vote.

“Both parties have just used brute political force when they had the opportunity,” Buck said.

Biden and Democrats used brute force to pass a nearly $2 trillion pandemic rescue package in 2021 and a massive climate and prescription drug law in 2022. They also scored some bipartisan success on projects ramping up infrastructure spending and rebuilding chip manufacturing. Those deals, however, would have looked less desirable for Democrats if they were in the minority and Republicans were leading negotiations.

Now, as Harris and Trump look ahead to the possibility of taking office on Jan. 20, both might have to reconsider their expectations for early success.

“In the first 100 days, when a new president wants to put points on the board to show that they can deliver, that might not be the reality,” Ferrier said.

This post appeared first on washingtonpost.com

MOSINEE, Wis. — A day after spending much of a 49-minute news conference revisiting — and denying — sexual misconduct allegations leveled against him, Donald Trump used part of a campaign rally in Wisconsin on Saturday to discuss another subject that has bedeviled his campaigns for president: Russian interference in U.S. elections.

U.S. intelligence officials warned Friday that the Russian government’s covert efforts to sway the presidential election are “more sophisticated than in prior election cycles,” and that Moscow is using artificial intelligence to create increasingly convincing fake content that could aid Trump. Four years ago, the Senate Intelligence Committee unanimously endorsed the U.S. intelligence community’s conclusion that Russia intervened in the 2016 election in an effort to boost Trump.

But Trump, who has repeatedly described the probes into Russian interference in the 2016 election as a “hoax,” is dismissing them this time around, too.

“The Justice Department said Russia may be involved in our elections again,” Trump told the crowd at his rally. “And, you know, the whole world laughed at them this time.”

The Republican presidential nominee’s comments appeared to reference the indictment Wednesday of two Russia-based employees of Russia’s state-run news site, RT, in an alleged scheme in which they paid an American media company to spread English-language videos on YouTube, TikTok, Instagram and X.

“It’s Russia, Russia, Russia all over again. But they don’t look at China and they don’t look at Iran. They look at Russia. I don’t know what it is with poor Russia,” Trump said.

Trump’s rally, at the airport in Mosinee, Wis., was billed as focused on “draining the swamp,” but featured a stump speech that meandered from familiar attack lines about inflation and jobs to falsehoods about sex-change operations for minors, conspiracy theories about government employment statistics and dismissals of Russian interference in American elections.

The indictments were part of the administration’s most sweeping effort yet to tackle what it described as Russian disinformation campaigns ahead of the November election.

Kremlin spokesman Dmitry Peskov told The Washington Post this week that the indictments were “nonsense” and denied Russian interference in the elections. And Russian President Vladimir Putin on Thursday said that he wants Vice President Kamala Harris to win the election, rather than Trump, in a tongue-in-cheek endorsement that was widely viewed — including by the former president — as an effort to undermine rather than support her.

“I knew Putin, I knew him well,” Trump said at the rally Saturday. “The other day he endorsed Kamala. He endorsed Kamala. I was very, offended by that … I think it was done maybe with a smile.”

Peskov said in an interview on Russian TV this month that Moscow views Harris as a more predictable opponent than Trump. “The Democrats are more predictable. And what Putin said about Biden’s predictability applies to almost all Democrats, including Ms. Harris,” he said.

But Russia, which is in the midst of a bloody, protracted invasion of its neighbor Ukraine, has other interests at stake in the 2024 election.

Trump, who has often boasted about his relationship with Putin and claimed without evidence that Russia would never have invaded Ukraine if he was president, has expressed deep skepticism about continuing U.S. military aid to Ukraine.

Harris has vowed to maintain Biden’s stance as Kyiv’s ally and most important financial and military backer, while Trump has privately suggested pressuring Ukraine to cede territory to Russia to end the war.

“I will have that war finished and done and settled before I get to the White House,” Trump vowed Saturday, repeating sentiments that the Kremlin has previously dismissed. “As president elect, I will get that done.

Cheeseman reported from Washington. Azi Paybarah contributed to this report.

This post appeared first on washingtonpost.com

As we have discussed many times, financial markets are fractal. Different timeframes produce similar price structures. This is a very valuable phenomena for the study and practice of trading. When tracking the intraday time frame; Wyckoff structures of Accumulation, Markup, Distribution and Markdown repeat over and over. This creates a laboratory for study and analysis. Below is just such a case study. By paying attention to the intraday charts, the Wyckoffian often identifies setups brewing in the larger timeframes. The market’s intention in the larger picture is often first revealed in the intraday.

S&P 500 Index, Intraday 30-Minute Timeframe

Chart Notes

1.      The upward stride of the $SPX (30-minute timeframe) accelerated into Preliminary Supply (PSY) creating a local climactic event.

2.      The continuation of momentum carried the index into a Buying Climax (BC). Note the poor quality of the rally from the PSY to the BC. Supply is present!

3.      The Automatic Reaction was sudden and deep with expanding volume. Large sellers were present and motivated to reduce their holdings.

4.      The BC is critical Resistance and the AR is Support in the newly formed range-bound structure.

5.      A Cause was being built from the PSY to the Last Point of Supply (LPSY) that had the character of Distribution. Volatility on weakness to the Support line tipped off the presence of active selling and supply. Volume expanded during the second half of the Distribution structure. More Supply, Supply, Supply!

6.      A Last Point of Supply (LPSY) completed the Distribution which was confirmed by the immediate gap reversal and expanding spread on the return to the Support line. This volatility supported the conclusion that Distribution was complete and Markdown was the next phase. The decline below Support confirmed Markdown in progress.

7.      Downtrends, even small versions, are typically volatile with large up and down swings. They are ideal for study purposes, while only the most accomplished traders should consider campaigning them.

S&P 500 Index, 1-Box Method, 15 Minute Data, ATR Scale (12.51 pts)Distribution is a Cause building process for the next trending move of the index, which is expected to be downward. A 15-minute Point & Figure chart with ATR Scaling is used to estimate the potential for the extent of the subsequent decline. With this 1-Box reversal PnF chart we identifed two count segments. Counting from right to left the count was taken from the Last Point of Supply (LPSY) to the Buying Climax (BC) and to the Preliminary Supply (PSY). Two count estimates were generated: 5,366.75 and 5,291.73.

Chart Notes

1.      Using the vertical chart of the Distribution and the chart analysis and then identifying those points on the PnF, two counts were taken. The lower objective estimate suggested that the decline could take back the rally from August 14th to the BC high on August 22nd. So, volatility could ensue as there is little natural support to those lower objective levels.

2.      Volume was quite high into the PSY and the BC, which indicated active selling on a scale up by the Composite Operator (C.O.) community. Thereafter, C.O. selling was persistent at the 5,642.01 Resistance level. Note that volume expanded throughout the second half of the Distribution. This further confirmed the Distribution hypothesis.

3.      Supply engulfed the index as it fell out of the Distribution, and this can be seen in the very high downside volume. A rally into the underside of the prior Support zone is possible. Selling would be expected to continue from under the old Support zone.

4.      How, and if, the index approaches the PnF price objectives will tell much about the subsequent intention of the $SPX index. The stock market is always an unfolding picture.

This intraday structure is a Tempest in a Teapot for its small size in time and potential extent of the move. This is valuable training and good practice for a Wyckoffian. Please take the time to zoom out to the larger daily and weekly charts to study the greater picture. As they are fractal, your practice will speed the learning curve. And your path to mastery.

All the Best,

Bruce

@rdwyckoff  

Disclaimer: This blog is for educational purposes only and should not be construed as financial advice. The ideas and strategies should never be used without first assessing your own personal and financial situation, or without consulting a financial professional. 

Wyckoff Resources:

Distribution Definitions (Click Here)

Wyckoff Power Charting. Let’s Review (Click Here)

Additional Wyckoff Resources (Click Here)

Wyckoff Market Discussion (Click Here)

Event Announcement:

TSAA-SF Annual Conference (to learn more CLICK HERE)

Old School / New School.

Conference Themes will range from Artificial Intelligence to Reminiscences of a Stock Operator.

In-person in San Francisco and Livestreaming for dues paying members.

Saturday September 14th at Golden Gate University

The TSAA-SF annual conference will be held on Saturday Sept 14th 2024 at Golden Gate University. It is an all day hybrid event, held both in person and via zoom. This year’s speakers include:

 * John Bollinger, CFA, CMT – Creator of Bollinger Bands, Author, Investor

 * Linda Raschke – Author of “Trading Sardines” Trader/Investor

 * Damon Pavlatos – CEO of Future Path Trading LLC & PhotonTrader

 * Dave Landry – Trader, Author, Speaker, Educator, Founder of DaveLandry.com

 * Robert Schott – Expert in Global Investments, Strategy, Risk, Derivatives, & ALM

 * Patrick Dunawila, CMT – Technical Analyst, Co-Founder of The Chart Report

 * Mike Jones – Data Engineer & Analytics Consultant

On Thursday afternoon, I dove into the StockChartsTechnicalRank (SCTR) Reports to scout out a good ETF during a mixed market (Dow and S&P 500 were down, Nasdaq was up).

Two gold miner ETFs—Wisdom Tree Efficient Gold Plus Gold Miners ETF (GDMN) and iShares MSCI Global Gold Miners ETF (RING)—caught my eye. Both had high SCTR scores of 99.9 and 99.6, respectively.

THE SCTR REPORT FOR US ETFs.

Everyone’s been talking about gold since it started climbing back in October 2022. But gold mining companies? Not so much.

Does this present an opportunity for investment, given ongoing geopolitical tensions, central bank demand, and the much-anticipated Fed rate cuts? Possibly.  But let’s dig deeper to try to get a deeper technical view as to what’s going on. 

Comparing GDMN to RING (and Gold)

First, GDMN and RING share a few of the same companies, but overall, they have different holdings. Let’s compare the performance of both companies and, out of curiosity, see how both compare to gold.


Open the StockCharts PerfCharts (under Member Tools or Charts & Tools) and enter GDMN,RING,$GOLD in the symbols box.


If you set the time parameters to one year, you get something like the chart below.

CHART 1. PERFCHART OF GDMN, RING, AND GOLD. GDMN is the red line, RING, the blue line, and gold, the green line. Chart source: StockCharts.com. For educational purposes.

Notice how both miners started outperforming gold in April, with GDMN leading the pack. But if you follow gold’s seasonality context, you know that the yellow metal dips in the summer before making a big move in the fall.

That’s gold. But what about gold miners? Let’s check the Dow Jones Gold Mining Index ($DJUSPM).


Under Charts & Tools, select Seasonality and enter $DJUSPM in the symbol box.


CHART 2. FIVE-YEAR SEASONALITY CHART OF DOW JONES GOLD MINING INDEX.  The number at the top of the bar indicates higher-close %, while the numbers at the bottom indicate average % return.Chart source: StockCharts.com. For educational purposes.

Over the last five years, August and September were the weakest months for gold miners. November and December both notched second best. March and April were the most outstanding months.

Gold demand has climbed over the last five years. Given the current economic and geopolitical context, how these numbers will pan out is unclear. But you have to check the price action if you’re bullish gold miners—and miners’ technical readings are outstandingly bullish right now.

Analyzing GDMN and RING

Are GDMN and RING the best mining indexes to trade? Both have high SCTR scores, and we know that gold miners, in general, have been on a steady rise.

But look at their trading volumes. In the Symbol Summary tool, type in each symbol.

  • GDMN has an incredibly low volume of 628 (no market cap listed)
  • RING’s volume is a little better, with 41,863 and a market cap of 517M

Gold mining ETFs generally have low liquidity, making them difficult to trade. A better and more liquid representation of gold miners is the VanEck Vectors Gold Miners ETF (GDX), which has a market cap of $13.66B and an average trading volume of around 7,259,656.

Let’s analyze its daily chart.

CHART 3. DAILY CHART OF GDX. Note the clear trend swing points.Chart source: StockCharts.com. For educational purposes.

First, notice that the SCTR reading has been well above the 90 line (see green rectangle in the top panel), indicating extreme bullishness across several indicators and timeframes. The Chaikin Money Flow (CMF) has been rising since July, indicating strong buying pressure.

The Ichimoku Cloud has been a reliable indicator of support since GDX established a near-term uptrend in March. As GDX is now touching the cloud (the ETF is a candidate in the Entered Ichimoku Cloud predefined scan), it might signal a favorable entry point.

More importantly, the ZigZag line, highlighting GDX’s swing points, is key to determining the trend and entry and stop loss levels. Basically, if an uptrend is defined as higher highs and higher lows, then for GDX’s uptrend to remain valid, it has to eventually break above $40, its most recent swing high, and it can’t close below its most recent swing low of $34 (see orange circles).

At the Close

SCTR reports can be a powerful starting point for spotting market opportunities. In this case, the report led me to gold miners, but finding a truly tradable option—like GDX—required some extra research. SCTR points you in the right direction, and, with a little homework using additional StockCharts tools, you can uncover attractive trading opportunities.


Disclaimer: This blog is for educational purposes only and should not be construed as financial advice. The ideas and strategies should never be used without first assessing your own personal and financial situation, or without consulting a financial professional.

I’ve been around long enough to remember when Intel (INTC) was the NVIDIA of the day. Now, INTC is under severe pressure, having suspended its dividend, and is currently being considered for removal from the Dow 30 Industrial Average. Oh, how the mighty have fallen!

With INTC having declined so much, we wonder if it is time to be bargain hunting this stock. Let’s look at charts in three timeframes to find the answer.

The daily chart below shows it making new 52-week lows today. The daily PMO was rising above the signal line, but it has turned down, and the PMO is deeply below the zero line. INTC has been in a narrow trading range for about a month. If it were to break up out of that range, it might be considered as a buy candidate, but, for now, it doesn’t look promising.

The weekly chart doesn’t look any more promising. We can see that a line of support has been violated, and that the weekly PMO is falling well below the zero line. No encouragement here.

Finally, the monthly chart shows that a very long-term support line has been violated, and the monthly PMO is falling below the zero line. INTC has just entered a zone of congestion, wherein it may find support, but the potential is for price to fall to 7.50.

Conclusion: So, to answer our initial question, no, there are no signs in any of the three timeframes that now is the time to be buying this stock. Probably the first sign that it may be time to consider an entry would be when the daily PMO turns up, accompanied by positive price action. Gradually adding to the position could take place as we see similar signs in the weekly and monthly time frames.


Introducing the New Scan Alert System!

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Technical Analysis is a windsock, not a crystal ball. –Carl Swenlin


(c) Copyright 2024 DecisionPoint.com


Disclaimer: This blog is for educational purposes only and should not be construed as financial advice. The ideas and strategies should never be used without first assessing your own personal and financial situation, or without consulting a financial professional. Any opinions expressed herein are solely those of the author, and do not in any way represent the views or opinions of any other person or entity.

DecisionPoint is not a registered investment advisor. Investment and trading decisions are solely your responsibility. DecisionPoint newsletters, blogs or website materials should NOT be interpreted as a recommendation or solicitation to buy or sell any security or to take any specific action.


Helpful DecisionPoint Links:

Trend Models

Price Momentum Oscillator (PMO)

On Balance Volume

Swenlin Trading Oscillators (STO-B and STO-V)

ITBM and ITVM

SCTR Ranking

Bear Market Rules


We are always on the lookout for chart patterns. Recently, we’ve found a bearish head-and-shoulders developing on Semiconductors (SMH).

Looking at the daily chart below, we can see the pattern developing. However, we do have to point out participation. Note the very low percentages on %Stocks > 20/50EMAs. These are clearly oversold readings and, if we look back at the vertical green lines that mark cardinal price bottoms, you’ll note they were at these levels. One thing to keep in mind is that oversold conditions can persist in a bear market. SMH is down over 20% from the July top, so we could see low readings for some time.

The Silver Cross Index is about to see a Bearish Shift across the signal line, and that would give us a Bearish Bias in the intermediate term. It is already at a very low 36% reading, suggesting how unhealthy this group is.

This head-and-shoulders pattern looks dangerous. Textbooks tell us that a break below the neckline would imply a downside move that is the height of the pattern. That would take price back down to 120.00. We doubt that will happen, but 160.00 doesn’t seem out of the question if this pattern executes.

Conclusion: Semiconductors (SMH) are in a bear market and are now forming a bearish head-and-shoulders pattern that would imply a drop well below 160.00. Given participation readings are very oversold, we aren’t so sure it will see that kind of devastation, but we definitely should be prepared for more downside from this group.


Introducing the New Scan Alert System!

Delivered to your email box at the end of the market day. You’ll get the results of our proprietary scans that Erin uses to pick her “Diamonds in the Rough” for the DecisionPoint Diamonds Report. Get all of the results and see which ones you like best! Only $29/month! Or, use our free trial to try it out for two weeks using coupon code: DPTRIAL2. Click HERE to subscribe NOW!


Learn more about DecisionPoint.com:


Watch the latest episode of the DecisionPointTrading Room on DP’s YouTube channel here!


Try us out for two weeks with a trial subscription!

Use coupon code: DPTRIAL2 Subscribe HERE!


Technical Analysis is a windsock, not a crystal ball. –Carl Swenlin


(c) Copyright 2024 DecisionPoint.com


Disclaimer: This blog is for educational purposes only and should not be construed as financial advice. The ideas and strategies should never be used without first assessing your own personal and financial situation, or without consulting a financial professional. Any opinions expressed herein are solely those of the author, and do not in any way represent the views or opinions of any other person or entity.

DecisionPoint is not a registered investment advisor. Investment and trading decisions are solely your responsibility. DecisionPoint newsletters, blogs or website materials should NOT be interpreted as a recommendation or solicitation to buy or sell any security or to take any specific action.


Helpful DecisionPoint Links:

Trend Models

Price Momentum Oscillator (PMO)

On Balance Volume

Swenlin Trading Oscillators (STO-B and STO-V)

ITBM and ITVM

SCTR Ranking

Bear Market Rules


After a week of wavering action, the stock market made a directional move—a lot lower—after Friday’s jobs data. Investors are concerned about the economy, and the narrative has switched from inflation worries to thinking that perhaps the Fed is too late in cutting rates. Today’s MarketCarpet shows a lot of red.

It will be interesting to see how much the Fed cuts interest rates in their September meeting. As of this writing, the probability of a 25-basis point interest rate cut is 71%, with a 50-basis point probability lowering to 29%. Will this change if next week’s August inflation data comes in cooler than expected? That remains to be seen. In the meantime, let’s see how much damage occurred in equities.

Analyzing the Stock Selloff

The S&P 500 ($SPX) was holding on to the support of its 50-day simple moving average (SMA) until Friday, when it plunged toward its 100-day SMA. The stochastic oscillator has also entered oversold territory, so watch this level to see how long it stays at this level.

CHART 1. S&P 500 SELLOFF SENDS THE INDEX TOWARD ITS 100-DAY MOVING AVERAGE. Keep an eye on the stochastic oscillator or any other momentum indicator.Chart source: StockChartsACP. For educational purposes.

Is this a case of too much too quickly? It may seem that way, but if you’ve been investing for a while, you know that when the market is overextended, a quick and dirty selloff happens.

Big Tech stocks got slammed. Tesla (TSLA), one of the stronger performers this week, gave up most of those gains, falling over 6%. The rest of the Mag 7 stocks—Apple (AAPL), Amazon (AMZN), Alphabet (GOOGL), Microsoft (MSFT), Nvidia (NVDA), and Meta Platforms (META)—got slammed as well.

Broadcom (AVGO) sold off after announcing earnings on Thursday after the close, which may have added more fuel to the fire in the semiconductor selloff.

The daily chart of the VanEck Vectors Semiconductor ETF (SMH) clearly shows a downtrend. If the next low takes out the August low, the downtrend will be confirmed.

CHART 2. SEMICONDUCTORS GET SLAMMED. A downward sloping trend, dip in the SCTR score, weakness in MACD, and declining relative performance with respect to the S&P 500 point to weakness in semis.Chart source: StockChartsACP. For educational purposes.

The StockCharts Technical Rank (SCTR) score dropped to single digits after enjoying a position above 90 for an extended period. SMH closed below its 200-day SMA, the Moving Average Convergence/Divergence (MACD) is turning lower with the MACD line crossing below the signal line, and the ETF’s relative performance with respect to the S&P 500 is falling. The technical picture is not pretty.

Bonds, Oil, Crypto  

After the jobs report, Treasury yields dropped, with the 5-year yield lower by 1.44%, 10-year lower by 0.56%, and the 30-year lower by 0.07%. For the 5- and 10-year Treasuries, these are the lowest levels in a year.

Commodities also suffered, especially crude oil, which has been sliding since April. The United States Oil Fund (USO) may not have hit its yearly low like the crude oil futures, but it is getting close.

Bitcoin ($BTCUSD) is close to the lower channel of its gently sloping downtrend (see chart below). A break below this channel (dotted blue lines) could send the cryptocurrency towards 50,000 or lower. With the MACD showing weakening momentum, further decline is likely.

CHART 3. A BREAK BELOW THE LOWER TRENDLINE COULD SPELL TROUBLE FOR BITCOIN. If Bitcoin shows further weakness, it could fall much lower.Chart source: StockChartsACP. For educational purposes.

One chart I’ll be watching closely is the CBOE Volatility Index ($VIX). On a significant selloff day, I expected VIX to spike as much as it did on August 5. That it didn’t could mean more volatility lies ahead. This could send the VIX higher and higher, and might be a warning signal of further selling. That makes this something to watch very closely.

Why is the US dollar up? That’s a big question mark and something to ponder over the weekend as we prepare for next week’s inflation numbers. Expect more choppiness next week.

End-of-Week Wrap-Up

  • S&P 500 closed down 4.25% for the week, at 5408.42, Dow Jones Industrial Average down 2.93% for the week at 40,345.41; Nasdaq Composite closed down 5.77% for the week at 16,690.83
  • $VIX UP 12.46% for the week closing at 22.38
  • Best performing sector for the week: Consumer Staples
  • Worst performing sector for the week: Technology
  • Top 5 Large Cap SCTR stocks: Insmed Inc. (INSM); Cava Group (CAVA); FTAI Aviation Ltd. (FTAI); SharkNinja, Inc. (SN); Coca-Cola Consolidated (COKE)

On the Radar Next Week

  • August Consumer Price Index (CPI)
  • August Producer Price Index (PPI)
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In this StockCharts TV video, Mary Ellen reviews the current downtrend taking place in the S&P 500 and Nasdaq, and highlights the “uninverting” yield curve. She finishes with a deep dive into Nvidia, sharing how to handle the stock depending on your investment horizon.

This video originally premiered September 6, 2024. You can watch it on our dedicated page for Mary Ellen on StockCharts TV.

New videos from Mary Ellen premiere weekly on Fridays. You can view all previously recorded episodes at this link.

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Residents of Jenin, in the occupied West Bank, are taking stock after nine days of what they say has been the most intense and sustained Israeli military operation in their city since October 7.

Witnesses describe it as a Gaza-style campaign, with widespread destruction of infrastructure, severed water and electricity supplies, and people rationing food for fear of going outside. It has been the deadliest period in the West Bank since November, according to the UN.

The military withdrew from Jenin and Tulkarem on Friday, according to residents. But an Israeli security source said that “the overall operation in Jenin is not over, it is only a pause.”

Though the war in Gaza has attracted most attention, Israel’s military has persistently and increasingly brought unsparing military tactics to the West Bank.

Israel’s security forces on August 28 launched what they dubbed a “counterterrorism operation” in Jenin, Tulkarem, and Tubas, in the northern West Bank. It has come to be known as Operation Summer Camps.

“We will not let terrorism in Judea and Samaria raise its head,” the head of the Israel Defense Forces, Lieutenant General Herzi Halevi, said during a visit to Jenin over the weekend, using the biblical names for the West Bank commonly used in Israel.

Residents say Jenin has been left transformed and scarred.

“It felt like Gaza,” 36-year-old Lina Al Amouri said by telephone from Jenin. She and her husband fled several days into the IDF incursion, but went back when they heard rumors that the operation had quieted.

“When we returned yesterday, we saw that all the streets were destroyed,” she said. “Soldiers were everywhere, continuing to bulldoze everything around them, not just the streets.”

“We heard many gunshots, and then we received news that my mother-in-law’s nephew had been shot seven times near the camp. They let him bleed until he died and prevented ambulances from reaching him.”

The IDF has previously said that it often must impede ambulances to check for militants.

Eight children killed

Nearly 700 Palestinians have been killed in the West Bank since October, according to the Palestinian Ministry of Health in Ramallah and the UN, whose figures do not distinguish between militants and civilians.

Since the Israeli operation began last Wednesday, 39 Palestinians have been killed, the Palestinian Ministry of Health in Ramallah reported. Among them were at least nine militants, according to public statements from Hamas and Palestinian Islamic Jihad. Eight children have also been killed according to the Palestinian Ministry of Health.

He left home on Friday to get food and attend Friday prayers. On his way back, Arafat said, he was gunned down in the street, where he lay for hours as he bled out.

The Israeli military has severely restricted access to the city since its operation began, so international media have had to rely on residents, local journalists, and social media video for independent information about the operation.

Journalists this week said that they were fired on by the Israeli military during a raid in Kafr Dan, near Jenin. Mohammed Mansour, a journalist for WAFA, was injured when the car he was driving was struck by gunfire, according to video of the aftermath and his employer.

Armored bulldozers also daily used heavy duty plows to tear up roads. The military says this is necessary to unearth improvised explosive devices planted under the tarmac. But the tactic has caused significant infrastructure damage, leaving many roads impassable.

The UN says that since October, Israeli authorities have “destroyed, demolished, confiscated, or forced the demolition” of 1,478 structures in the West Bank. Jenin’s mayor said that more than 70% of his city’s critical infrastructure has been destroyed.

While deadly ground raids in the West Bank were a regular occurrence before Hamas’ brutal October 7 attack, air strikes – though not entirely unheard of – were extremely rare. When in July 2023 Israel used a drone to launch airstrikes as part of a large operation in Jenin, it made headlines around the world. Not a single Palestinian in the West bank was killed by an air strike in the preceding three years, according to the UN.

‘Don’t play with us’

Since October, such strikes have become a near-daily occurrence. And their use has dramatically ramped up in recent weeks. The UN says that of all deaths by Israeli air strikes since October, nearly a third came in August alone.

“No place in Palestine is safe, not just Gaza,” Health Minister Majed Abu Ramadan said during a visit to Jenin on Thursday – the first time a Palestinian official visited the city since Israel’s operation began. “We witness the occupying enemy repeating the systematic destruction I saw before, targeting both human life and infrastructure.”

Brigadier General Nitzan Nuriel, who ran the counter-terrorism bureau of the Israeli Prime Minister’s Office until 2012, and now serves in the reserves, said that Operation Summer Camps was launched to send a message to Israel’s adversaries.

“The message to the other side is, ‘Don’t play with us. Don’t think that if we are very much down in the south and probably we are going to be busy up in the north, we will not be able to take care of what’s going in Judea and Samaria.’”

The Israeli military, Halevi said during his visit to Jenin, will go “city to city, camp to camp, with excellent intelligence, very good operational capabilities, very strong aerial intelligence support, and above all, with very moral and determined soldiers and commanders.”

Duha Turkman, 18 years old, sheltered with her sister at an aunt’s house for a week when the operation began, too scared to go outside because of the Israeli snipers they saw on surrounding rooftops.

“We tried to conserve food as much as we could,” she said. “We were eating very little, had no water, and no electricity.”

Suddenly, on the seventh day, Israeli soldiers burst through their door, she said. A video taken by Turkman shows shrapnel pockmarking the stairwell of the house. They soon fled to an uncle’s house elsewhere in the city.

“When we look at Gaza, we realize that we have been going through this for nine days, and it is already incredibly difficult for us,” she said. “We can only imagine what the people in Gaza are enduring. The situation here mirrors Gaza with airstrikes, bulldozing, and it doesn’t seem like the situation will change anytime soon.”

This post appeared first on cnn.com

An American activist has been shot and killed during a protest near Nablus in the Israeli-occupied West Bank, according to Palestinian officials.

The Palestinian news agency WAFA said the activist was shot in the head during a protest in Beita, near Nablus, on Friday. She was taken to hospital, where she was pronounced dead, WAFA reported.

This is a developing story and will be updated.

This post appeared first on cnn.com