11-05-2018 Todd’s Market Update

VIX Holds 20 for a 3rd-Straight Session


U.S. markets got off to a mixed start for the week following ongoing trade concerns and ahead of the midterm elections. Additionally, FOMC meetings on Wednesday and Thursday this week weighed on investor sentiment.

China’s President Xi Jinping’s came back with some harsh words over the weekend for the U.S. stance on trade while the midterms are expected to shift the congressional balance of power. Volatility stayed slightly elevated but closed below major resistance at 20 for a 3rd-straight session.


The Dow gained 0.8% after holding positive territory for the majority of the session and reaching a peak of 25,505. Fresh and lower resistance at 25,600-25,800 held with a close above the latter and the 50-day moving average being a more bullish development.

The S&P 500 traded in a tight 27-point range while adding 0.6%. Resistance at 2,740-2,750 was split but held on the run to 2,744 with continued closes above the latter being a slightly bullish development.

The Russell 2000 dipped a half-point, or 0.03% after testing a midday low of 1,534. Fresh support at 1,535-1,520 was breached with a close below the latter likely leading to additional selling pressure.

The Nasdaq dropped 0.4% following the pullback to 7,255. Near-term support at 7,250-7,200 held with a move below the latter being a very bearish development.

Energy and Real Estate showed the most sector strength after jumping 1.7%. Financials and Utilities were up 1.6% and 1.4%.

Communication Services and Technology were the only sector laggards after falling 0.4% and 0.1%, respectively.


ANALYST UPGRADES/DOWNGRADES

Netflix (NFLX) upgraded to Buy from Underperform at Buckingham
iRobot (IRBT) upgraded to Buy from Hold at Canaccord
Under Armour (UA, UAA) upgraded to Overweight from Neutral at Piper Jaffray
Encana (ECA) downgraded to Equal Weight from Overweight at Morgan Stanley
Hilton (HLT) downgraded to Hold from Buy at Argus
Starbucks (SBUX) downgraded to Sell from Hold at DZ Bank


EARNINGS

Tuesday's earnings announcements (EST): 

Before the open: Armstrong Flooring (AFI), Boise Cascade (BCC), CVS Health (CVS), Eli Lilly (LLY), Emerson Electric (EMR), Federal Signal (FSS), GreenSky (GSKY), Heska (HSKA), LGI Homes (LGIH), Malibu Boats (MBUU), Novanta (NOVT), ParkOhio Holdings (PKOH), Ralph Lauren (RL), Sotherly Hotels (SOHO), TopBuild (BLD), Unit (UNT), Zebra Technologies (ZBRA)

After the close: Ashland (ASH), Belmond (BEL), Community Healthcare (CHCT), Devon Energy (DVN), Diodes (DIOD), Energen (EGN), Etsy (ETSY), Five9 (FIVN), GoDaddy (GDDY), HCI Group (HCI), Inogen (INGN), Jazz Pharmaceuticals (JAZZ), Lending Club (LC), Match Group (MTCH), Neenah Paper (NP), Papa John’s International (PZZA), Planet Fitness (PLNT), Quidel (QDEL), Red Robin Gourmet Burgers (RRGB), ScanSource (SCSC), TrueCar (TRUE), Wendy’s (WEN), Zillow Group (Z)




UPCOMING ECONOMIC NEWS
Tuesday's Economic Reports (EST):
Redbook - 8:55am
Jolts - 10:00am


METALS / OIL

Gold closed at $1,232.30 an ounce, down $1.00
Silver settled at $14.65 an ounce, down $0.11

Copper finished at $2.76 a pound, down $0.05

Crude Oil is at $62.77 a barrel, down $0.09

Bitcoin Investment Trust (GBTC) ended at $7.16 up $0.24



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

   Todd Mitchell

VIX Holds 20 for a 3rd-Straight Session

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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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