Intermediate-Term Traders Report
It looks like the market has changed its
intermediate-term direction by bouncing off the bottom of a declining channel.
Look at the major indices. You will notice what I am talking about. Let me give
you one example.Â
As you can see on its weekly chart, the Nasdaq Composite Index ($COMPX) is
bouncing from the descending lower boundary. It appears the up cycle has begun.
Notice how the RSI indicator is behaving. It is also turning up in a
declining channel.
This up cycle may last three to four weeks, but watch out for the major economic
reports. The ISM Index will be released on August 2, and the employment data
will be announced on August 6. It’s going to be an
interesting week.
Economic Calendar
| Date | Time | Release | For | Consensus |
| August 02 | 10:00 | ISM Index | July | 62.0 |
| August 03 | 08:30 | Personal Income | June | +0.3% |
| August 03 | 08:30 | Personal Spending | June | ±0% |
| August 04 | 10:00 | ISM Services | July | 61.5 |
| August 06 | 08:30 | Nonfarm Payrolls | July | +233K |
| August 06 | 08:30 | Unemployment Rate | July | 5.6% |
| August 06 | 08:30 | Hourly Earnings | July | +0.3% |
| August 06 | 08:30 | Average Workweek | July | 33.8 |
Notable stocks of the week:
Â
American Eagle Outfitters (AEOS): After consolidating above the rising
20-week EMA, the issue broke out to a new 52-week high. Look at the wide range
bar and heavy volume.
Cardinal Health Inc (CAH): Accompanied by extremely heavy volume, CAH
extended its losses and finished the week at a new 52-week low.
Strong industry groups: Steel and Iron, Oil and Gas Refining Marketing,
Meat Products
Weak industry groups: Long Distance Carriers, Internet Service Providers,
Data Storage Devices
Good night and see you next week