11-01-2018 Todd’s Market Update

Bulls Get Hat Trick


​U.S. markets opened higher but began to lose some steam in early morning action following 2 days of solid gains. However, an optimistic tweet from President Trump about trade talks with China renewed strength with the market extending its rally to a third-straight session.


Trump tweeted he had a long and very good conversation with President Xi Jinping of China said they talked about many subjects, with a heavy emphasis on trade. He added those discussions were moving along nicely with meetings being scheduled at the G-20 meetings in Argentina.


The Russell 2000 rocketed 2.2% while making a run to 1,547. Fresh and lower resistance at 1,550-1,560 held with a close above the latter being a continued bullish signal.

The Nasdaq zoomed 1.8% after testing a session high of 7,435. Fresh resistance at 7,450-7,500 held with a close above 7,525 and the 200-day moving average being a continued bullish signal.

The S&P 500 soared 1.1% while tapping a high of 2,741 ahead of the closing bell. Lower resistance at 2,735-2,750 was split with the latter holding into the close.

The Dow also jumped 1.1% after trading a late session peak of 25,396. Lower resistance at 25,350-25,400 was cleared and held with the close above the 200-day moving average being a bullish development.

Materials surged 2.8% to lead sector strength while Consumer Discretionary rallied 2%. Industrials rose 1.7% while Healthcare popped 1.3% higher.

Utilities were the only sector laggard after giving back 0.4%


ANALYST UPGRADES/DOWNGRADES

Asur (ASR) upgraded to Overweight from Neutral at JPMorgan
Nutrisystem (NTRI) upgraded to Outperform from Market Perform at Barrington
Sanofi (SNY) upgraded to Equal Weight from Underweight at Barclays

Autoliv (ALV) downgraded to Neutral from Buy at Longbow
Encana (ECA) downgraded to Underperformer from Neutral at CIBC

New Oriental Education (EDU) downgraded to Hold from Buy at Deutsche Bank


EARNINGS

Friday's earnings announcements (EST): 

Before the open: Alibaba (BABA), Buckeye Partners (BPL), Cboe Global Markets (CBOE), Duke Energy (DUK), Exxon Mobil (XOM), HMS Holdings (HMSY), ITT Industries (ITT), Newell Brands (NWL), Ruth’s Hospitality Group (RUTH), Seagate Technologies (STX), Vistra Energy (VST)

After the close: ​Parsley Energy (PE), Watts Industries (WTS)



UPCOMING ECONOMIC NEWS
Friday's Economic Reports (EST):
Jobs Report - 8:30am
International Trade in Goods - 8:30am
Factory Orders - 10:00am
Baker-Hughes Rig Count - 1:00pm


METALS / OIL

Gold closed at $1,238.60 an ounce, up $23.60
Silver settled at $14.78 an ounce, up $0.50

Copper finished at $2.72 a pound, up $0.06

Crude Oil is at $63.49 a barrel, down $1.82

Bitcoin Investment Trust (GBTC) ended at $6.64 down $0.10



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

   Todd Mitchell

Bulls Get Hat Trick

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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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