11-07-2018 Todd’s Market Update

Bulls Make a Strong Statement


U.S. markets opened higher and stayed strong following the results from the midterm elections, which played out just as Wall Street had expected. Republicans held the majority in the Senate, while Democrats gained control of the U.S. House of Representatives, raising the prospect of gridlock in D.C. between the two sides.

Lost in the hoopla, the Federal Reserve began its two-day policy meeting today, with a decision due Thursday afternoon. 

The market isn’t expecting a change in policy, but traders will be looking for fresh signals from the U.S. central bank on its plans for the rest of the year and beyond.


The Nasdaq zoomed 2.6% while reaching a peak of 7,572. Lower resistance at 7,500-7,525 and the 200-day moving average was cleared and gets fresh hurdles at 7,600-7,650 in play.

The Dow jumped 2.1% after testing a midday high of 26,200. Fresh and lower resistance at 26,000-26,200 was cleared and held with the move above the 50-day moving average being a bullish signal.

The S&P 500 also soared 2.1% following the push to 2,815 intraday. Fresh and lower resistance at 2,800-2,825 was cleared and held on the move above the 200-day moving average.

The Russell 2000 was higher by 1.7% after trading an intraday high of 1,582. Upper resistance at 1,575-1,580 was cleared and held into the close to set up a possible run towards 1,600.

Healthcare and Technology led sector strength after surging 3% and 2.9%, respectively. Consumer Discretionary advanced 2.7%.

There were no sector laggards for a 2nd-straight session.


ANALYST UPGRADES/DOWNGRADES

Target (TGT) upgraded to Outperform from Market Perform at Cowen
Spark Therapeutics (ONCE) upgraded to Strong Buy from Outperform at Raymond James
USA Compression (USAC) upgraded to Outperform from Sector Perform at RBC Capital
Frontier Communications (FTR) downgraded to Sell from Neutral at UBS
Mindbody (MB) downgraded to Neutral from Buy at UBS
Zillow (Z) downgraded to Sell from Hold at Zelman


EARNINGS

Thursday's earnings announcements (EST): 

Before the open: ​AstraZeneca (AZN), Cardinal Health (CAH), DR Horton (DHI), Endo International (ENDP), Fly Leasing (FLY), Gannett (GCI), Johnson Controls (JCI), Magna International (MGA), Nomad Foods (NOMD), Olympic Steel (ZEUS), Perrigo (PRGO), Scientific Games (SGMS), Telus (TU), Worldpay (WP)

After the close: Activision Blizzard (ATVI), Bojangles’ (BOJA), Clearwater Paper (CLW), Dropbox (DBX), Funko (FNKO), Hanger (HNGR), Hertz Global Holdings (HTZ), InnerWorkings (INWK), Joint (JYNT), One Stop Systems (OSS), PDF Solutions (PDFS), Redfin (RDFN), Skyworks Solutions (SWKS), Trade Desk (TTD), ViewRay (VRAY), Walt Disney (DIS), Yelp (YELP)



UPCOMING ECONOMIC NEWS
Thursday's Economic Reports (EST):
Jobless Claims - 8:30am
FOMC Meeting Announcement - 2:00pm


METALS / OIL

Gold closed at $1,228.70 an ounce, up $2.40
Silver settled at $14.57 an ounce, up $0.07

Copper finished at $2.75 a pound, up $0.02

Crude Oil is at $62.72 a barrel, up $0.51

Bitcoin Investment Trust (GBTC) ended at $7.72 up $0.23



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

   Todd Mitchell

Bulls Make a Strong Statement

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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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