09-13-2018 Trade of the Day

Bulls Clear Major Resistance


U.S. markets cleared major resistance levels on Thursday on news of easing trade tensions with the U.S. and Chinese governments working on the logistics for a new round of trade talks.

There was also news trade talks between the U.S. and Canada could resume as early as next week with a potential trade deal outlined. Volatility stayed deflated after closing below a key level of support and is suggesting slight market momentum.

The Nasdaq showed the most strength after rallying 0.8% while reaching an intraday peak of 8,037. Resistance at the 8,000 level was cleared and held for the first time in 7 sessions with the all-time late August high at 8,133 back in play.

The Dow advanced 0.6% after trading to an intraday high of 26,191. The close above the 26,000 level was a bullish signal with fresh resistance at 26,200-26,400.

The S&P 500 was up 0.5% following its run to 2,906 and close above the 2,900 level. The recent all-time high is at 2,916 with fluff up to 2,925-2,950 on continued momentum.

The Russell 2000 was the only index to slip into negative territory while finishing with a loss of 0.1%. The 9-point range reached a high of 1,722 with resistance at 1,725-1,730 holding.

Health Care and Technology showed the most sector strength after rising 1.2%. Utilities were higher by 0.8%.

Consumer Staples and Financials were the only sector laggards after giving back 0.2% and 0.1%, respectively.


Flowserve (FLS) upgraded to Buy from Neutral at Northcoast
Intel (INTC) upgraded to Market Perform from Underperform at Northland
Magna (MGA) upgraded to Outperformer from Neutral at CIBC
Wayfair (W) downgraded to Neutral from Buy at BofA/Merrill
Ciena (CIEN) downgraded to Equal Weight from Overweight at Morgan Stanley.
Wabco (WBC) downgraded to Neutral from Outperform at Baird


Friday's earnings announcements (EST): 

Before the open: ​Dave & Buster’s Entertainment (PLAY)
After the close: ​No major announcements

Friday's economic reports (EST): 

​​Retail Sales - 8:30am
Import and Export Prices - 8:30am
Industrial Production - 9:15am
Business Inventories -10:00am
Consumer Sentiment - 10:00am
Baker-Hughes Rig Count - 1:00pm


Gold closed at $1,208.20 an ounce, down $2.70

Silver settled at $14.24 an ounce, down $0.05

Copper finished at $2.68 a pound, up $0.01

Crude Oil is at $68.72 barrel, down $1.65

Bitcoin Investment Trust (GBTC) ended at $8.69 up $0.45

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

   Todd Mitchell


Bulls Clear Major Resistance

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