09-10-2018 Trade of the Day

Bulls Show Strength but Resistance Holds

MARKET SUMMARY

U.S. markets opened with solid gains to start the week despite the lack of any clear catalyst while finishing mostly higher. Trade tensions continue to be Wall Street’s main focus and have been providing a headwind for momentum.

Some of the strength came after the U.S failed to impose new tariffs on China over the weekend. However, President Trump has signaled he's ready to target more Chinese goods for new tariffs and suggested some U.S. Tech companies could avoid tariffs by moving manufacturing back home.

The Nasdaq snapped a 4-session slide after rising 0.3% and trading to a high of 7,945. Lower resistance at 7,950-7,800 held with a move above the latter being a bullish signal.

The Russell 2000 climbed 0.3% after trading in a 9-point range while topping out at 1,723. Resistance at 1,725-1,730 held with continued closes above the latter signaling a possible short-term bottom.

The S&P 500 was up for the first time in 5 sessions after adding 0.2% while trading to a high of 2,886. Prior resistance at 2,890-2,900 held with a close above the latter signaling additional strength.

The Dow dipped 0.2% after trading to an intraday low of 25,854. The index managed to clear 26,000 shortly after the open but remains trapped in a trading range between 25,800-26,000 that has now pushed 6-straight sessions.

Real Estate led sector strength after jumping 0.6% while Utilities and Industrials rallied 0.5%.

Health Care and Financials paced sector laggards after giving back 0.3% and 0.1%, respectively. Energy slipped 0.03%.

ANALYST UPGRADES/DOWNGRADES

Akamai (AKAM) upgraded to Buy from Neutral at DA Davidson
Foot Locker (FL) upgraded to Outperform from Market Perform at Wells Fargo
Kennametal (KMT) upgraded to Buy from Neutral at Longbow
Constellation Brands (STZ) downgraded to Hold from Buy at SunTrust
Darden (DRI) downgraded to Neutral from Outperform at Baird
Roche (RHHBY) downgraded to Neutral from Buy at BofA/Merrill


EARNINGS

Tuesday's earnings announcements (EST): 

Before the open: ​​Francesca’s Holdings (FRAN), Optical Cable (OCC), Peak Resorts (SKIS)
After the close: Farmer Brothers (FARM), Streamline Health Solutions (STRM)

UPCOMING ECONOMIC NEWS
Tuesday's economic reports (EST): 

NFIB Small Business Optimism Index - 6:00am
Redbook - 8:55am
Jolts - 10:00am
Wholesale Trade - 10:00am


METALS / OIL

Gold closed at $1,199.80 an ounce, down $0.60

Silver settled at $14.18 an ounce, up $0.11

Copper finished at $2.63 a pound, up $0.01

Crude Oil is at $67.55 barrel, up $0.56

Bitcoin Investment Trust (GBTC) ended at $8.23 down $0.11



​​​Article of the Day

The road to Trading Success is never a straight line. Which skills will help you stay successful as a trader? [read more]

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   Todd Mitchell

QUOTE OF THE DAY

Bulls Show Strength but Resistance Holds

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About the Author Todd Mitchell

Todd Mitchell is the CEO & Founder of Trading Concepts, Inc. He's been trading since 1994 and has mentored over 12,000 traders from Wall Street to Main Street. He's an expert at developing strategies for creating more consistent daily, weekly and monthly income.

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