Tesla Tuesday

US equity indexes closed moderately higher, sp +8pts (0.3%) at 2858. The two leaders - Trans/R2K, settled +0.5% and +0.2% respectively. VIX settled -3.0% at 10.93. Near term outlook offers minor cooling to the 2830s.

sp'daily5

VIX'daily3

Summary

It was another day for the equity bulls, with the sp' breaking a new multi-month high of 2863. There was a subtle late afternoon cyclical rollover, and it does offer the 2830s on Wednesday. That would still leave two legacy gaps to the 2760s, and right now.. that looks out of range. New historic highs remain on track before end month.

Volatility was naturally subdued, with the VIX melting lower for a fourth consecutive day.
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Bonus chart: TSLA, monthly

It was certainly a day of drama for Tesla. First, its notable that today's high of $387.46, didn't quite break a new historic high. It does look likely that Tesla will be taken private. Most important of all... most of the existing shareholders will not be selling, and thus is won't likely cost some kind of investment fund more than a few billion. So, before year end, it'll be time to delete the Tesla chart and ticker from our trading platforms.
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Extra charts in AH (usually around 7pm EDT) @ https://twitter.com/permabear_uk

Goodnight from London
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A new multi-month high

US equity indexes closed moderately higher, sp +10pts (0.4%) at 2850. The two leaders - Trans/R2K, both settled +0.6%. Near term outlook offers another s/t cooling wave, at least to re-test the 2800/2790s. Min' technical retrace remains 2768.


sp'daily5

VIX'daily3

Summary

US equities opened in minor chop mode, but with no downside pressure, resumed into the same algo-bot melt mode that we saw last Thurs/Friday. The sp' broke a new multi-month high of 2853.29, just fractionally shy of fully filling the last upside gap (2822/2853.53).

Volatility was naturally subdued, with the VIX settling in the low 11s. A sporadic spike to the 15/16s is entirely viable later this week.
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Bonus chart: China, monthly

Monday saw a net daily decline of -1.3% to 2705... approaching the July low of 2691. This is getting ugly again, as the US/China trade war is already seeing a clear victor... at least in equity prices.
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Extra charts in AH (usually around 7pm EDT) @ https://twitter.com/permabear_uk

Goodnight from London
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Weekend update - World equity markets

It was a bullish month for world equity markets, with net monthly gains ranging from 8.9% (Brazil), 4.7% (USA), 4.1% (Germany), +3.5% (France), 2.6% (Spain), 1.6% (Russia), 1.2% (Australia), 1.1% (Japan), 1.0% (China), to 0.5% (Greece) Near term outlook offers further upside into Sept/Oct.


Lets take our regular look at ten of the world equity markets

USA - Dow

The mighty Dow gained 1143pts (4.7%) to settle July at 25415. Note the monthly settlement above the key 10MA. Underlying macd (green bar histogram) is seeing the downward swing in price momentum from January level out. A bearish macd cross is currently being avoided, and this bodes well for at least another few months.


Germany – DAX

The economic powerhouse of the EU - Germany, saw the DAX +499pts (4.1%) to 12805, notably above the key 10MA. We have a very clear divergence between price momentum and actual price across 2015>2018. Things would turn exceptionally bearish if core rising trend is broken, and in August that is currently around 11800s.


Japan – Nikkei

Japanese equities gained 249pts (1.1%) to 22553. The m/t trend remains bullish. The long term outlook remains 'beyond problematic', as a demographic collapse is inevitable.


China – Shanghai comp'

Chinese equities swung from an intra month low of 2691, to settle +29pts (1.0%) at 2876. The July candle offers a spike floor, having cooled from January. The Friday Aug'3rd close of 2740 is a problem though.


Brazil – Bovespa

After a rough May/June, the Bovespa caught a very powerful bounce, settling +6457pts (8.9%) to 79220. Despite the gain, monthly price momentum is negative, for the first time since early 2016.


Russia - RTSI

The Russian equity market gained 19pts (1.6%) to 1173. The 1200 threshold remains key. Higher energy prices would really help this market.


France – CAC

The CAC settled +187pts (3.5%) to 5511, notably back above the key 10MA. Next big target is the June 2007 high of 6168.


Spain – IBEX

The Spanish market gained 248pts (2.6%) to 9870. The m/t trend remains bearish from early 2017. Note giant resistance of 12k. Things would turn extremely bearish <8500, but that is a long way down.


Australia – AORD

Australian equities climbed for a fourth consecutive month, breaking a new multi-year high, gaining 76pts (1.2%) to 6366.


Greece - Athex

The economic basket-case of the EU - Greece, gained 3pts (0.5%) to 761, notably under the key 10MA. The Athex is a perfect reflection of a Greek economy that never recovered from the global financial crisis of 2008/09.
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Summary

All ten world equity markets saw net July gains.

Brazil, USA, and Germany lead the way higher, with China and Greece lagging.

The m/t outlook offers at least another 2-3 months of upside.
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Looking ahead

Earnings season continues, notably: TWLO, SNAP, DIS, ROKU, DBX

M -
T - Consumer credit (3pm)
W - EIA Pet' report
T - Weekly jobs, PPI, Wholesale trade
F - CPI, US T-budget
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Have a good weekend
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*the next post on this page will likely appear 6pm EDT on Monday.