09-12-2018 Trade of the Day

Mixed Action on Improving Trade Concerns


U.S. markets were choppy throughout Wednesday’s action as trade news dominated headlines that led to a mixed finish. Canada appears ready to offer the U.S. limited access to its dairy markets, one of the current sticking points in trade negotiations, in order to help forge a new NAFTA deal.

Afternoon strength was attributed on word Treasury Secretary Steven Mnuchin recently invited Chinese counterparts to another meeting to talk about bilateral trade. This would give China another opportunity to address concerns over trade issues before implementing additional tariffs on imports.

The Dow was up 0.1% following the morning peak of 26,145 and slightly weak open. Resistance at 26,000 held for a 9th-straight session.

The S&P 500 climbed a point, or 0.04% while reaching a high of 2,894. Resistance at 2,900 held for a 7th-straight session with a close above this level being a slightly bullish signal.

The Nasdaq fell 0.2% after trading lower throughout the session while bottoming at 7,884. Upper support at 7,900-7,875 held for the 5th-straight session with a close below the latter signaling additional weakness.

The Russell 2000 traded mostly lower throughout the session while also giving back 0.2% and tapping a low of 1,704. Mid-August support at 1,700 held with a close below 1,690 being a bearish development.

Consumer Staples showed the most sector strength after surging 1.1%. Health Care and Energy added 0.5%.

Financials led sector weakness after sinking 0.9%. Technology and Communications Services were lower by 0.4% and 0.3%


Best (BSTI) upgraded to Outperform from Neutral at Macquarie
Immersion (IMMR) upgraded to Buy from Hold at Craig-Hallum
Tiffany (TIF) upgraded to Outperform from Perform at Oppenheimer
CenterState Bank (CSFL) downgraded to Hold from Buy at Sandler O'Neill
Micron (MU) downgraded to Neutral from Buy at Goldman Sachs
Snap (SNAP) downgraded to Sell from Neutral at BTIG


Thursday's earnings announcements (EST): 

Before the open: ​​Brady (BRC), Kroger (KR), Lovesac (LOVE), Palatin Technologies (PTN)
After the close: ​​Adobe Systems (ADBE), Champions Oncology (CSBR), Park City Group (PCYG), Radiant Logistics (RLGT)

Thursday's economic reports (EST): 

​Jobless Claims - 8:30am
Consumer Price Index - 8:30am
Treasury Budget - 2:00pm


Gold closed at $1,210.90 an ounce, up $8.70

Silver settled at $14.28 an ounce, up $0.14

Copper finished at $2.68 a pound, up $0.06

Crude Oil is at $70.32 barrel, up $0.92

Bitcoin Investment Trust (GBTC) ended at $8.24 up $0.10

  I hope this helps you prepare for tomorrow. Have a great evening.

   Todd Mitchell


Mixed Action on Improving Trade Concerns

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