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Monday, April 24, 2017 - Weekly e-Newsletter - Issue No. 753

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Economic Calendar
Date
ET
Release
For
Consensus
Prior
Apr 25
09:00
Case-Shiller Home Price Index
Feb
NA
5.7%
Apr 25
09:00
FHFA Housing Price Index
Feb
NA
0.0%
Apr 25
10:00
New Home Sales
Mar
NA
592K
Apr 25
10:00
Consumer Confidence
Apr
NA
125.6
Apr 26
07:00
MBA Mortgage Applications Index
04/22
NA
-1.8%
Apr 26
10:30
Crude Inventories
04/22
NA
-1.03 mln
Apr 27
08:30
Durable Orders
Mar
NA
1.7%
Apr 27
08:30
Durable Goods –ex transportation
Mar
NA
0.4%
Apr 27
08:30
Initial Claims
04/22
NA
244K
Apr 27
08:30
Continuing Claims
04/15
NA
1979K
Apr 27
08:30
Adv. International Trade in Goods
Mar
NA
-$64.8B
Apr 27
10:00
Pending Home Sales
Mar
NA
5.5%
Apr 27
10:30
Natural Gas Inventories
04/22
NA
54 bcf
Apr 28
08:30
GDP-Adv.
Q1
NA
2.1%
Apr 28
08:30
Chain Deflator-Adv.
Q1
NA
2.1%
Apr 28
08:30
Employment Cost Index
Q1
NA
0.5%
Apr 28
09:45
Chicago PMI
Apr
NA
57.7
Apr 28
10:00
Michigan Sentiment - Final
Apr
NA
98.0
 
This Week in History

4/24/1899 - In Wardner, Idaho a strike by mine workers to get a pay raise to $3.50 per day turned violent, resulting in $250,000 of damaged and destroyed property

4/25/1996 - After the previous year's government shutdown, Republican dominated Congress passed Pres. Clinton's budget in overwhelming fashion.

4/26/1997 - After posting losses of $24 million and $37 million the previous year, Woolworth' , was forced to close many of its discount stores

4/27/1966 - Pennsylvania and NY Centra Railroads merged marking the biggest mergere in U.S. corporate history at the time

4/29/1926 - France and the U.S. made a deal writing off sixty percent of the $4 billion the French owed; US moves from owing billions to Europe to Europe owing to the U.S.

This Week’s Featured Indicator:
FIBONACCI RETRACEMENTS

Fibonacci retracements are projected lines of support and resistance that are based on the key Fibonacci ratios of 23.6%, 38.2%, 50%, 61.8%, and 100%. When price begins exhibiting trend characteristics and retraces (falls back against the trend), many technical traders anticipate that price will again move in the direction of the trend upon reaching the key Fibonacci levels of 38.2%, 50%, or 61.8%.

PROS:

  • Fibonacci levels provide clear price levels to anticipate potential support and resistance.
  • The 50% retracement has been interpreted as a key balance point in that the “longs” who bought at the start of the trend and “shorts” who sold at the start of the retracement are both profitable in their trades.
  • Fibonacci levels are not “lagging” indicators, as they project potential price reversals well into the future
  • Fibonacci levels can be combined with other indicators, particularly “lagging” indicators to help analyze or confirm a given market bias.

CONS:

  • Fibonacci levels may be ineffective for short term use as the volatility levels may be too high.
  • Because the identification of trends are both subjective and multiple, it is difficult to tell at times which trend movements are more suitable for plotting Fibonacci levels.
  • Combining Fibonacci levels by plotting them on multiple trends will often lead to confusion.
 

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