11-20-2018 Todd’s Market Update

VIX Surges to Monthly High

U.S. markets skidded for a 2nd-straight session with the Dow and S&P 500 giving back their gains for 2018. The Nasdaq is still marginally higher for the year but is testing multi-month lows. The small-caps went into negative territory, for the year, 7 sessions ago.

Although there are signs of a

possible bottoming process, volatility remains elevated after closing above key resistance levels.

Volume was also light and was a contributing factor as traders prepare for a shortened rest of the week.

The Dow stumbled 2.2% after testing a session low of 24,368. Shaky support at 24,350-24,200 held with risk to 24,100-24,000 and last month’s bottom on a move below the latter.

The S&P 500 declined 1.8% following the pullback to 2,631. Major support at 2,650 was breached and failed to hold with risk to 2,600-2,575 and fresh October lows on continued selling pressure.

The Russell 2000 also tumbled 1.8% after trading to an intraday low of 1,465. Support at 1,480-1,460 was split with a close below the October low of 1,459 signaling additional weakness.

The Nasdaq plummeted 1.7% following the backtest to 6,830. Upper April support at 6,850-6,800 was breached but held with a move below the latter likely getting the February low at 6,630 in play. The Nasdaq came in 2018 at 6,903 and closed at 6,908.

There were no sectors that showed strength on Tuesday.

Energy was the hardest hit sector after sinking 3.3%. Consumer Discretionary gave back 2.3% while Financials and Technology and were lower by 2.2%.


CME Group (CME) upgraded to Buy from Hold at Berenberg
EQT Corporation (EQT) upgraded to Buy from Neutral at Goldman Sachs
LyondellBasell (LYB) upgraded to Outperform from Sector Perform at RBC Capital

​Exxon Mobil (XOM) downgraded to Underperform from Market Perform at Raymond James
Skyworks (SWKS) downgraded to Underperform from Neutral at BofA/Merrill
Western Digital (WDC) downgraded to Neutral


Wednesday's earnings announcements (EST): 

Before the open: AstroNova (ALOT), Deere & Company (DE), Qudian (QD)

After the close: Chemical & Mining Company (SQM)

Wednesday's Economic Reports (EST):
MBA Mortgage Applications - 7:00am
Durable Goods Orders - 8:30am
Jobless Claims - 8:30am
Consumer Sentiment - 10:00am
Existing Home Sales - 10:00am
Leading Indicators - 10:00am
Baker-Hughes Rig Count - 1:00pm


Gold closed at $1,221.20 an ounce, down $4.10
Silver settled at $14.27 an ounce, down $0.13

Copper finished at $2.77 a pound, down $0.03

Crude Oil is at $53.24 a barrel, down $3.96

Bitcoin Investment Trust (GBTC) ended at $4.89 
down $0.51

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

   Todd Mitchell

VIX Surges to Monthly High

Click to Tweet