11-29-2018 Todd’s Market Update

Momentum Stalls on Trade Rhetoric

U.S. markets opened in the red and reached their sessions lows shortly afterwards following more trade rhetoric ahead of the G20 summit this weekend. President Trump said there's a long way to go on tariffs with China and that he is happy with where things are currently.

The rebound to positive territory and higher weekly highs in the second half of action was a bullish signal before weakness into the close ruined the momentum. Volatility stayed slightly elevated but held key levels of resistance.

The Russell 2000 was down 0.3% following a late day push to 1,534. Lower resistance at 1,535-1,550 held with continued closes above the latter signaling a possible run towards 1,560-1,575 and the 50-day moving average.

The Nasdaq also slipped 0.3% despite trading to a second half high of 7,319. Fresh and lower resistance at 7,300-7,350 held with a close above the latter signaling additional strength.

The S&P 500 was off 0.2% following the late day run to 2,753. Fresh and lower resistance at 2,750-2,775 held with a close above the latter and the 50-day moving average being a more bullish development.

The Dow dipped 0.1% after testing a session high of 25,479. Lower resistance at 25,400-25,600 held with a close above the latter and the 50-day moving average signaling additional strength.

Energy and Materials led sector strength after rising 0.7%, respectively. Healthcare climbed 0.3%.

Technology and Financials paced sector laggards after declining 1% and 0.9%. Consumer Discretionary fell 0.5% and Utilities were lower by 0.04%.


Dominion (D) upgraded to Buy from Neutral at UBS
McDonald's (MCD) upgraded to Overweight from Equal Weight at Morgan Stanley
Ryder (R) upgraded to Buy from Hold at Stifel

American Express (AXP) downgraded to Neutral from Buy at Buckingham
Dick's Sporting (DKS) downgraded to Neutral from Overweight at JPMorgan
Intel (INTC) downgraded to Hold from Buy at DZ Bank


Friday's earnings announcements (EST): 

Before the open: ​​​​​Citi Trends (CTRN), Fang Holdings (SFUN), Tsakos Energy (THP)

After the close: None

Friday's Economic Reports (EST):
Chicago PMI - 9:45am
Baker-Hughes Rig Count - 1:00pm


Gold closed at $1,224.10 an ounce, up $0.50
Silver settled at $14.40 an ounce, up $0.08

Copper finished at $2.79 a pound, down $0.02

Crude Oil is at $51.26 a barrel, up $1.01

Bitcoin Investment Trust (GBTC) ended at $5.29
down $0.25

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

   Todd Mitchell

Momentum Stalls on Trade Rhetoric

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