10-30-2018 Todd’s Market Update

VIX Continues to Hold 25

U.S. markets opened slightly lower but showed strength shortly afterwards while maintaining positive territory for much of the session. President Trump’s remarks about a potential "great deal" with China helped sentiment and follows news that the U.S. could levy tariffs on the balance of Chinese imports.

Tech showed some midday weakness as it slightly lagged overall market strength with a number of major companies set to report 3Q earnings this week. Volatility stayed slightly deflated after holding near-term resistance for a 4th-straight session.

The Russell 2000 showed the most strength after rocketing 2% and making a run to 1,507. Near-term and lower resistance at 1,500-1.515 was cleared with a close above 1,520 being a more bullish development.

The Dow was up 1.8% after testing an intraday high of 24,906. Near-term resistance at 24,800-25,000 was split with continued closes back above 25,150 and the 200-day moving average being a more bullish signal.

The S&P 500 surged 1.6% while trading to a session high of 2,685. Fresh and lower resistance at 2,675-2,700 was cleared and held with continued closes above the latter being a slightly bullish development.

The Nasdaq advanced 1.6% while trading to a midday peak of 7,166. Lower resistance at 7,150-7,200 was held by the bulls with continued closes above 7,300 signaling a possible near-term bottom.

Communications was the strongest sector after zooming 2.7% while Energy and Materials were up 2.3%. Industrials and Consumer Staples were higher by 2.1% and 2%, respectively.

There were no sector laggards.

ANALYST UPGRADES/DOWNGRADES

Beach Energy (BEPTF) to Hold from Sell at Canaccord
Nvidia (NVDA) upgraded to Overweight from Neutral at JPMorgan
Werner (WERN) upgraded to Overweight from Sector Weight at KeyBanc
Elevate Credit (ELVT) downgraded to Market Perform from Outperform at JMP Securities
E-Trade (ETFC) downgraded to Outperform from Strong Buy at Raymond James
LabCorp (LH) downgraded to Hold from Buy at Argus


EARNINGS

Wednesday's earnings announcements (EST): 

Before the open: ​​​Anthem (ANTM), Baxter International (BAX), CDW (CDW), Clean Harbors (CLH), Clorox (CLX), Dine Brands Global (DIN), Estee Lauder (EL), Garmin (GRMN), General Motors (GM), Hess (HES), Kellogg (K), LittelFuse (LFUS), Molson Coors Brewing (TAP), PBF Energy (PBF), Radian Group (RDN), Sanofi (SNY), Sprint (S), Walker & Dunlop (WD), Yum Brands (YUM)

After the close: ​​Allstate (ALL), Apache (APA), Cactus (WHD), Churchill Downs (CHDN), CryoLife (CRY), Express Scripts (ESRX), Fitbit (FIT), FormFactor (FORM), JBT Corp (JBT), Keane Group (FRAC), Life Storage (LSI), Masimo (MASI), Noble Drilling (NE), Open Text (OTEX), Qorvo (QRVO), Rayonier (RYN), Suncor Energy (SU), Williams Companies (WMB), XPO Logistics (XPO), Zynga (ZNGA)



UPCOMING ECONOMIC NEWS
Wednesday's Economic Reports (EST):
MBA Mortgage Applications - 7:00am
ADP Employment Report - 8:15am
Employment Cost Index - 8:30am
Chicago PMI - 9:45am


METALS / OIL

Gold closed at $1,225.30 an ounce, down $2.30
Silver settled at $14.46 an ounce, up $0.02

Copper finished at $2.66 a pound, down $0.08

Crude Oil is at $66.17 a barrel, down $0.87

Bitcoin Investment Trust (GBTC) ended at $6.66 down $0.17



  I hope this helps you prepare for the trading day. Make it a great one!

   Todd Mitchell

VIX Continues to Hold 25

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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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