11-04-2018 Todd’s Market Update

Bulls Post Strong Weekly Gains

U.S. markets showed continued momentum on Friday’s open and were looking to extend a 3-session win streak following a strong jobs number. However, continued trade rhetoric and near-term resistance levels were too much to overcome with the major indexes rolling over an hour afterwards.

The small-caps made a late session comeback to avoid a loss and the overall damage was limited as the major indexes still managed to finish the week with gains. 

Volatility remains slightly elevated with the bulls and bears seesawing for leverage ahead of the midterm elections.

The Russell 2000 climbed 0.2% after reaching a peak of 1,557 shortly after the opening bell. Both upper and lower resistance at 1,550-1,560 held into the closing bell with the index roughly 5% away from clearing its 200-day moving average.

The Nasdaq tumbled 1% despite a 3rd-straight higher high and run to 7,466. The close below the 7,400 level and fade to 7,298 held near-term support at 7,300-7,275.

For the week, the Russell 2000 rallied 4.4% and the Nasdaq advanced 2.7%, their first weekly gains since mid and late September, respectively.

The S&P 500 came within 8 points of clearing its 200-day moving average but sank 0.6% on the backtest to 2,700. Upper support at 2,700-2,675 held by a half-point with a move below 2,650 being a bearish signal.

The Dow fell 0.4% despite trading to a morning high of 25,578. The pullback to 25,078 held lower and shaky support at 25,250-25,000 on the 2nd-straight close above the 200-day moving average holding.

Both the Dow and the S&P 500 were up 2.4% for the week.

Consumer Discretionary was the only sector that closed higher on Friday after adding 0.4%. Technology tanked 2% while Communication Services sank 1% to lead sector laggards.

For the week, Materials zoomed 6.1% while Consumer Discretionary and Energy soared 4.4%. Healthcare and Industrials jumped 2.1% and 1.9%, respectively. Utilities were the only sector laggard after falling 0.4%.


Emergent BioSolutions (EBS) upgraded to Buy from Neutral at Goldman Sachs
Ingredion (INGR) upgraded to Neutral from Sell at Citi
VeriSign (VRSN) upgraded to Neutral from Underweight at JPMorgan

Apple (AAPL) downgraded to Neutral from Buy at BofA/Merrill
Puma Biotechnology (PBYI) downgraded to Underweight from Equal Weight at Barclays
UPS (UPS) downgraded to Neutral from Buy at Citi


Monday's earnings announcements (EST): 

Before the open: Amicus Therapeutics (FOLD), CNA Financial (CNA), Del Frisco’s Restaurant (DFRG), Diamond Offshore Drilling (DO), Ferrari (RACE), Hudson (HUD), Invitation Homes (INVH), Kemper (KMPR), Loews (L), NuStar Energy (NS), Paramount Group (PGRE), Restoration Robotics (HAIR), SeaWorld Entertainment (SEAS), TravelCenters of America (TA), Welbilt (WBT),

After the close: American States Water (AWR), Avis Budget Group (CAR), Booking Holdings (BKNG), Cabot (CBT), Carrizo Oil & Gas (CRZO), Douglas Dynamics (PLOW), Fabrinet (FN), FreshPet (FRPT), Howard Hughes (HHC), IntriCon (IIN), j2 Global Communications (JCOM), Luminex (LMNX), Marriott International (MAR), Mosaic (MOS), nLight (LASR), Occidental Petroleum (OXY), Rent-A-Center (RCII), RingCentral (RNG), Skyline (SKY), Tenet Healthcare (THC), Valvoline (VVV), Xencor (XNCR)

Monday's Economic Reports (EST):
PMI Services Index - 9:45am
ISM Non-Manufacturing Index - 10:00am
TD Ameritrade IMX - 12:30pm


Gold closed at $1,233.30 an ounce, down $5.30
Silver settled at $14.76 an ounce, down $0.02

Copper finished at $2.81 a pound, up $0.09

Crude Oil is at $62.86 a barrel, down $0.63

Bitcoin Investment Trust (GBTC) ended at $6.93 up $0.29

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

   Todd Mitchell

Bulls Post Strong Weekly Gains

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