12-02-2018 Todd’s Market Update

VIX Holds 20 Ahead of G20 Summit

U.S. markets traded in a tight range on Friday before showing late day strength while closing out the best week of the year with strong gains. Much of the early choppiness came on chatter from the G-20 summit on how things might be progressing in trade talks between the U.S. and China.

The major indexes cleared the previous session highs and the action is showing the market is anticipating some sort of deal, or at least a truce on further tariffs. Volatility also continues to show signs the market could be on the verge of a continued breakout with major resistance levels holding throughout the past week.

The S&P 500 soared 0.8% following the late day push to 2,760. Fresh and lower resistance at 2,760-2,775 and the 50-day moving average was challenged with a close above the latter and the 200-day moving average being a continued bullish development.

The Dow was also up 0.8% after testing a session high of 25,549. Lower resistance at 25,550-25,750 and the 50-day moving average held with a move above the latter signaling additional strength.

For the week, the Dow was up 5.2% while the S&P 500 rallied 4.9%, with monthly gains of 1.7% and 1.8%, respectively.

The Nasdaq closed for the 4th-time in 5 sessions after rising 0.8% and kissing a high of 7,332. Fresh and lower resistance at 7,350-7,400 held with a close above 7,475-7,525 being a continuing bullish development.

The Russell 2000 was up for the 5th-time in 7 sessions after adding 0.5% and reaching a peak of 1,535. Lower resistance at 1,535-1,550 held for the 2nd-straight session with a close above the latter signaling additional momentum.

The Nasdaq was higher by 5.6% for the week and 0.3% for the month while the Russell 2000 rose 3.1% on the week and 1.4% in November.

Utilities and Healthcare led sector strength after jumping 1.5% and 1%. Industrial, Real Estate and Technology rose 1%.

Communication Services and Consumer Staples were the only sector laggards after losing 0.2%.

For the week, Healthcare and Technology zoomed 7% and 6%, respectively. Consumer Discretionary surged 5.9% and Communication Services rallied 4.9%. There were no sectors that closes lower for the week.


Sony (SNE) upgraded to Buy from Neutral at Citi
Under Armour (UAA) upgraded to Market Perform from Underperform at Wells Fargo
Volaris (VLRS) upgraded to Hold from Reduce at HSBC

Assertio Therapeutics (ASRT) downgraded to Neutral from Buy at Mizuho
Cree (CREE) downgraded to Underweight from Neutral at JPMorgan
Sprouts Farmers Market (SFM) downgraded to Underperform from Buy at BofA/Merrill


Monday's earnings announcements (EST): 

Before the open: ​​​​​​Finisar (FNSR), Hexindai (HX), RMR Group (RMR)

After the close: Coupa Software (COUP), Mesa Air Group (MESA), Smartsheet (SMAR)

Monday's Economic Reports (EST):
PMI Manufacturing Index - 9:45am
ISM Manufacturing Index - 10:00am
Construction Spending - 10:00am


Gold closed at $1,220.20 an ounce, down $3.90
Silver settled at $14.22 an ounce, down $0.18

Copper finished at $2.79 a pound, unchanged

Crude Oil is at $52.60 a barrel, up $1.34

Bitcoin Investment Trust (GBTC) ended at $4.99
down $0.30

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

   Todd Mitchell

VIX Holds 20 Ahead of G20 Summit

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