11-28-2018 Todd’s Market Update

Dow Regains 200-Day Moving Average

U.S. markets opened higher and rallied throughout the session following soothing comments from Fed Head Jerome Powell. This comes after sharp criticism from President Trump who said in an interview he wasn’t too happy with Powell’s assault on interest rates.

It is hard to argue that the Fed hasn’t been listening to the noise surrounding the rapid rise in rates, but lesser hikes in 2019 seem more likely as the Fed is closer to finding a normal rate. Meanwhile, volatility further relaxed but is still above key levels of support after slipping just 3.1% despite the market’s monster gains.

The Nasdaq soared 3% with the intraday peak tapping 7,292. Fresh and upper resistance at 7,250-7,300 was tested but held with the index finishing just a point off its session peak.

The Russell 2000 rallied 2.5% after trading to a late session high of 1,530. Mid-month and lower resistance at 1,525-1,540 was cleared and held with continued closes above the latter signaling a possible near-term bottom for the small-caps.

The Dow also zoomed 2.5% after testing a session high of 25,368. Fresh and lower resistance at 25,200-25,400 and the 200-day moving average was cleared and held into the closing bell.

The S&P 500 surged 2.3% following the intraday push to 2,744. Prior and upper resistance at 2,725-2,750 was tested with a close above 2,765-2,785 and the 200-day and 50-day moving averages being more bullish signals.

Technology and Consumer Discretionary led sector strength after jumping 3.5% and 3%, respectively. Healthcare and Industrials rose 2.4%.

Utilities were the only sector laggard after giving back 0.1%.


Aspen Technology (AZPN) upgraded to Buy from Hold at Canaccord
Spirit Airlines (SAVE) upgraded to Overweight from Neutral at JPMorgan
Union Pacific (UNP) upgraded to Buy from Hold at Deutsche Bank

Eaton Vance (EV) downgraded to Underweight from Neutral at JPMorgan
Cracker Barrel (CBRL) downgraded to Underperform from Hold at Gordon Haskett
YY (YY) downgraded to Neutral from Overweight at JPMorgan


Thursday's earnings announcements (EST): 

Before the open: ​​​​Ambarella (AMBA), Culp (CULP), Dell Technologies (DVMT), GameStop (GME), HP (HPQ), Palo Alto Networks (PANW), Splunk (SPLK), VMware (VMW), Workday (WDAY), Yext (YEXT), Zuora (ZUO)

After the close: Ambarella (AMBA), Culp (CULP), Dell Technologies (DVMT), GameStop (GME), HP (HPQ), Palo Alto Networks (PANW), Splunk (SPLK), VMware (VMW), Workday (WDAY), Yext (YEXT), Zuora (ZUO)

Thursday's Economic Reports (EST):
Jobless Claims - 8:30am
Personal Income and Outlays - 8:30am
Pending Home Sales Index - 10:00am


Gold closed at $1,223.60 an ounce, up $10.20
Silver settled at $14.32 an ounce, up $0.24

Copper finished at $2.81 a pound, up $0.10

Crude Oil is at $50.25 a barrel, down $1.31

Bitcoin Investment Trust (GBTC) ended at $5.54 
up $0.84

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

   Todd Mitchell

Dow Regains 200-Day Moving Average

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