08-13-2018 Trade of the Day

VIX Flirts With 15

MARKET SUMMARY

U.S. markets showed strength on Monday’s open but reversed course shortly afterwards following the ongoing economic crisis in Turkey, which has seen its currency slip against other world markets. Despite the weakness in the Turkish lira, the U.S. banking exposure remains small although Financials were weak for a 3rd-straight session.

There was little else for Wall Street to key in on as the economic calendar was quiet and with the 2Q earnings season winding down. Volatility closed at its highest level since early July but held a key level of resistance.

The Russell 2000 gave back 0.7% after bottoming at 1,670 midday. Lower support at 1,680-1,675 held with the close below the 50-day moving average being a slightly bearish development.

The Dow declined 0.5% despite testing a morning high of 25,381 while extending its losing streak to 4-straight sessions. The close below upper support at 25,200-25,000 was also a warning signal.

The S&P 500 slipped 0.4% after failing near-term resistance at 2,850 on the morning pop to 2,843. Lower support at 2,825-2,820 was beached on the intraday low of 2,819 but held into the closing bell.

The Nasdaq was off 0.3% after trading to an intraday high of 7,888 and failing key resistance at 7,900. A close below 7,800, and a level that has been holding for 8-straight sessions, would be a bearish development.

Utilities and Healthcare rose 0.1% while Real Estate was up 0.03% and were the only sectors to show strength.

Energy was the leading sector laggard after tumbling 1.3%. Financials and Materials sank 1% to add on to Friday’s 1+% pullbacks.


ANALYST UPGRADES/DOWNGRADES

Dollar Tree (DLTR) upgraded to Overweight from Neutral at Atlantic Equities
Papa John's (PZZA) upgraded to Buy from Neutral at Longbow
Viavi (VIAV) upgraded to Buy from Hold at Needham
Akamai (AKAM) downgraded to Neutral from Outperform at Credit Suisse
Goodyear Tire (GT) downgraded to Equal Weight from Overweight at Morgan Stanley
Rite Aid (RAD) downgraded to Market Perform from Outperform at Cowen


EARNINGS

Tuesday's earnings announcements (EST): 

Before the open: ​​​Advance Auto Parts (AAP), Brinker International (EAT), Canadian Solar (CSIQ), Eyenovia (EYEN), Home Depot (HD), MakeMyTrip (MMYT), National Vision Holdings (EYE), Rewalk Robotics (RWLK), Tapestry (TPR), Veru (VERU)
After the close:
 Agilent Technologies (A), Boxlight (BOXL), Casa Systems (CASA), Cree (CREE), iCad (ICAD), Myriad Genetics (MYGN), PetIQ (PETQ), Sorl Auto Parts (SORL), Viavi Solutions (VIAV), YogaWorks (YOGA)



UPCOMING ECONOMIC NEWS

Tuesday's economic reports (EST): 

​NFIB Small Business Optimism Index - 6:00am
Import and Export Prices - 8:30am
Redbook - 8:55am


METALS / OIL

Gold closed at $1198.90 an ounce, down $20.10

Silver settled at $14.98 an ounce, down $0.32

Copper finished at $2.73 a pound, down $0.01

Crude Oil is at $67.37 barrel, down $0.36

Bitcoin Investment Trust (GBTC) ended at $9.41 down $0.19

​​​Article of the Day

The biggest mistake that beginners make, especially when they win for a period of time is thinking that the market is going to stay in the same... [read more]

   Make it a great day!

   Todd Mitchell

QUOTE OF THE DAY

VIX Flirts With 15

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08-12-2018 Trade of the Day

Dow 5-Week Win Streak Ends

MARKET SUMMARY

U.S. markets opened in negative territory on Friday, taking their lead from overseas markets, which fell on concerns surrounding Turkey's economic crisis. U.S. banks may have little exposure to the Turkish lira, but European banks do and worries about a ripple effect hurt the financial sectors around the globe.

Near-term support levels held for the major indexes with the small-caps being the most fragile at the present moment. Volatility also held a key level of support after spiking nearly 17%.

The Dow dropped 0.8% to extend its losing streak to 3-straight sessions after testing a low of 25,222. Fresh support at 25,200-25,000 held with a move below the latter being a continued bearish development.

The S&P 500 stumbled 0.7% while trading to an intraday low of 2,825. Backup support at 2,825-2,820 held with a close below the latter getting 2,800 back in play.

The Dow fell for the first time in 6 weeks after giving back 0.6% while the S&P 500 fell 0.3%.

The Nasdaq had its 8-straight winning streak snapped following a 0.7% pullback and backtest to 7,818. Support at 7,800 held with a move below this level likely signaling additional weakness.

The Russell 2000 fell 0.4% despite showing intraday strength after trading down to 1,680 shortly after the open. Upper support at 1,680-1,675 and the 50-day moving average held with a close below the latter being a warning sign for lower lows.

For the week, Tech was up 0.4% while the small-caps rose 0.8%.

Energy was the only sector to show strength after rising 0.5%. Consumer Discretionary and Communication Services gained 0.8% and 0.7% for the week.

Materials and Financials paced sector laggards after falling 1.4% and 1.2%. For the week, Consumer Staples and Real Estate were down 1.9% and 1.8%, respectively.


ANALYST UPGRADES/DOWNGRADES

AMD (AMD) upgraded to Neutral from Sell at Goldman Sachs
Dropbox (DBX) upgraded to Outperform from Sector Perform at RBC Capital
Floor & Decor (FND) upgraded to Outperform from Market Perform at Wells Fargo
Campbell Soup (CPB) downgraded to Underweight from Neutral at JPMorgan
Intel (INTC) downgraded to Sell from Neutral at Goldman Sachs
Sysco (SYY) downgraded to Sell from Hold at Pivotal Research


EARNINGS

Monday's earnings announcements (EST): 

Before the open: ​​Cannae Holdings (CNNE), Jinko Solar (JKS), Nine Energy Service (NINE), Stars Group (TSG), Sysco (SYY)
After the close:
 Cypress Energy Partners (CELP), Famous Daves of America (DAVE), Ideal Power (IPWR), Rosetta Resources (ROSE), Switch (SWCH), ThermoGenesis (KOOL), Vipshop Holdings (VIPS), YY (YY)



UPCOMING ECONOMIC NEWS

Monday's economic reports (EST): 

​No major announcements


METALS / OIL

Gold closed at $1219.00 an ounce, down $0.90

Silver settled at $15.30 an ounce, down $0.16

Copper finished at $2.74 a pound, down $0.03

Crude Oil is at $66.75 barrel, down $0.06

Bitcoin Investment Trust (GBTC) ended at $9.60 down $0.14

​​​Article of the Day

Just because you enter the market and the market happens to move in your direction a bit doesn’t necessarily constitute a winning trade. You need to have logical profit objectives in place before you even enter the market. [read more]

   Make it a great day!

   Todd Mitchell

QUOTE OF THE DAY

Dow 5-Week Win Streak Ends

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08-09-2018 Trade of the Day

January Resistance Levels Hold

MARKET SUMMARY

U.S. markets were mixed for a 2nd-straight session after China responded to the U.S.’s plan to impose new 25% tariffs on Chinese goods that will take effect August 23rd. China said it would match that move, with similar tariffs to take effect the same day.

Fresh resistance and January highs were tested and remain in play despite the lackluster action and tough talk. Tech and small-caps showed strength with volatility also pushing January lows.

Fresh resistance and January highs were tested and remain in play despite the lackluster action and tough talk. Tech and small-caps showed strength with volatility also pushing January lows.

The Nasdaq extend its winning streak to 8-straight sessions and longest of the year after rising 3 points, or 0.04%, while tapping a high of 7,923. Lower resistance at 7,900-7,925 held for a 3rd-straight session despite the index coming within 10 points of a fresh all-time high.

The Russell 2000 held positive territory for the majority of the session while rising 0.2% and making a run to 1,696 intraday. Lower resistance at 1,690-1,700 held with a move above the latter getting record highs back in play.

The Dow was slightly lower for a 2nd-straight day after giving back 0.3% following the backtest to 25,492 ahead of the closing bell. The lower low and 2nd-straight close below the 25,600 level was a slightly bearish development with near-term support at 25,400 needing to hold ahead of the weekend.

The S&P 500 declined 0.1% despite testing an intraday high of 2,862 and also coming within 10 points of fresh lifetime peaks. Support remains at 2,850 with Thursday’s low reaching 2,851.

Materials and Communication Services paced sector leaders after rising 0.5%. Utilities rose 0.4% while Consumer Discretionary and Real Estate gained 0.3%.

Energy sank 1.1% and was the weakest sector. Financials and Industrials were down 0.6%.


ANALYST UPGRADES/DOWNGRADES

Ormat Technologies (ORA) upgraded to Overweight from Neutral at JPMorgan
WildHorse Resource (WRD) upgraded to Buy from Hold at SunTrust
Comstock Resources (CRK) upgraded to Buy from Neutral at Ladenburg
Seagate (STX) downgraded to Sell from Neutral at Goldman Sachs
21st Century Fox (FOXA) downgraded to Sector Perform from Outperform at RBC Capital
Schneider National (SNDR) downgraded to Underperform from Buy at BofA/Merrill


EARNINGS

Friday's earnings announcements (EST): 

Before the open: ​Applied Industrial Technologies (AIT), China Yuchai International (CYD), GWG Holdings (GWGH), Meredith (MDP)
After the close:
 Innovative Industrial Properties (IIPR)



UPCOMING ECONOMIC NEWS

Friday's economic reports (EST): 

​Consumer Price Index - 8:30am
Baker-Hughes Rig Count - 1:00pm


METALS / OIL

Gold closed at $1219.90 an ounce, down $1.10

Silver settled at $15.46 an ounce, up $0.03

Copper finished at $2.77 a pound, up $0.02

Crude Oil is at $66.75 barrel, down $0.06

Bitcoin Investment Trust (GBTC) ended at $9.74 up $0.01

​​​Article of the Day

Put options give the buyer the right, but not the obligation, to sell an underlying asset at the strike price until market close on the 3rd Friday of the expiration month. [read more]

   Make it a great day!

   Todd Mitchell

QUOTE OF THE DAY

January Resistance Levels Hold

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08-08-2018 Trade of the Day

Tech Stays Hot but Fails Resistance

MARKET SUMMARY

U.S. markets settle mostly lower on heightened China/U.S. trade tensions while trading in less than a 1% range. News the U.S. would begin imposing a 25% tariff on an additional $16 billion in Chinese imports in two weeks weighed on sentiment.

The mixed session showed some bullish signals as Tech closed higher and volatility settled lower despite the choppy session.

The Dow dipped 0.2% after trading down 25,557 while snapping a 3-session winning streak. The blue-chips closed just below the 25,600 level but has wiggle room down to 25,400 before we can say a short-term top is in.

The S&P 500 was down less than a point, or 0.03% after trading in a 9-point range while snapping a 4-session winning streak. Support at 2,850 held on the backtest to 2,853.

The Nasdaq added 0.1% to extend its winning streak to 7-straight sessions while trading to a high of 7,901. Lower resistance at 7,900-7,925 held for a second-straight session to give a slightly cautious signal.

The Russell 2000 slipped 0.1% following the intraday pullback to 1,677. Support at 1,680-1,675 was split but levels that held into the closing bell.

Technology and Financials showed the most sector strength after rising advancing 0.3%. Healthcare was up 0.2% while Consumer Discretionary climbed 0.1% to round out the winners.

Consumer Staples sank 0.8% and was the weakest sector. Energy and Real Estate fell 0.7% and 0.6%, respectively.


ANALYST UPGRADES/DOWNGRADES

Dean Foods (DF) upgraded to Hold from Sell at Deutsche Bank
Bristol-Myers (BMY) upgraded to Neutral from Underweight at Atlantic Equities
Plantronics (PLT) upgraded to Buy from Neutral at Sidoti
Aramark (ARMK) downgraded to Neutral from Outperform at Baird
Dentsply Sirona (XRAY) downgraded to Equal Weight from Overweight at Stephens
Mallinckrodt (MNK) downgraded to Market Perform from Outperform at Raymond James



EARNINGS

Thursday's earnings announcements (EST): 

Before the open: Avaya Holdings (AVYA), Canada Goose Holdings (GOOS), Daseke (DSKE), Foundation Building Materials (FBM), Gannett (GCI), Koppers Holdings (KOP), Motorcar Parts of America (MPAA), Nice Systems (NICE), Party City (PRTY), Perrigo (PRGO), Revlon (REV), Smart Sand (SND), Unique Fabrications (UFAB), Worldpay (WP)
After the close:
 Airgain (AIRG), Bottomline Technologies (EPAY), Dropbox (DBX), Funko (FNKO), ICU Medical (ICUI), j2 Global Communications (JCOM), Microchip Technology (MCHP), News Corp (NWSA), Overstock.com (OSTK), Planet Fitness (PLNT), Redfin (RDFN), Sunrun (RUN), Trade Desk (TTD), ViaSet (VSAT), WideOpenWest (WOW)



UPCOMING ECONOMIC NEWS

Thursday's economic reports (EST): 

​Jobless Claims - 8:30am
PPI-FD - 8:30am
Wholesale Trade - 10:00am


METALS / OIL

Gold closed at $1221.00 an ounce, up $2.70

Silver settled at $15.43 an ounce, up $0.06

Copper finished at $2.75 a pound, unchanged

Crude Oil is at $69.17 barrel, unchanged

Bitcoin Investment Trust (GBTC) ended at $9.73 down $0.40

​​​Article of the Day

Put options give the buyer the right, but not the obligation, to sell an underlying asset at the strike price until market close on the 3rd Friday of the expiration month. [read more]

   Make it a great day!

   Todd Mitchell

QUOTE OF THE DAY

Tech Stays Hot but Fails Resistance

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08-07-2018 Trade of the Day

Earnings Stay Strong

MARKET SUMMARY

U.S. markets opened in positive territory and showed continued momentum throughout Tuesday’s session while pushing January resistance levels. The strength was attributed to a continued solid 2Q earnings season as 82% of the S&P 500 companies that have reported have topped estimates.

This is higher than the 72% of companies that beat estimates during the same quarter last year. The S&P ETFs for small capitalization and mid-cap stocks broke out to fresh all-time highs, with the large-cap S&P 500 now within 1% of lifetime peaks.

The Dow, which has been a laggard over the past few sessions, was up 0.5% after making a run to 25,692. The close above resistance at 25,600 was a bullish signal for continued strength.

The S&P 500 extended its winning streak to 4-straight sessions after adding 0.3% and reaching a peak of 2,863. Lower January resistance at 2,870-2,875 held with the all-time high just south of 2,873.

The Nasdaq closed higher for the 6th-straight session after gaining 0.3% and tapping 7,898 intraday. Lower resistance at 7,900-7,925 held with a move above the latter getting fresh all-time highs up to 7,950-8,000 in play.

The Russell 2000 climbed 0.2% following its morning push to 1,694. Fresh resistance is at 1,690-1,700 with a move above the latter also signaling a test towards 1,710-1,715 and new record highs.

Industrials and Energy led sector strength after rising 0.7%. Consumer Discretionary and Financials advanced 0.5%

Consumer Staples paced sector laggards after falling 0.6%. Real Estate and Utilities were off 0.2%.


ANALYST UPGRADES/DOWNGRADES

Alnylam (ALNY) upgraded to Buy from Hold at Stifel
Illumina (ILMN) upgraded to Equal Weight from Underweight at Morgan Stanley
SeaWorld (SEAS) upgraded to Neutral from Underperform at Macquarie
Zillow (Z) downgraded to Neutral from Buy at BofA/Merrill
Wynn Resorts (WYNN) downgraded to Hold from Buy at Argus
Dentsply Sirona (XRAY) downgraded to Neutral from Outperform at Baird



EARNINGS

Wednesday's earnings announcements (EST): 

Before the open: ​Cars.com (CARS), CVS Health (CVS), Extreme Networks (EXTR), Gogo (GOGO), Horizon Pharma (HZNP), Kelly Services (KELYA), Keurig Dr Pepper (KDP), Mylan (MYL), New York Times (NYT), Regenxbio (RGNX), Sina (SINA), Tecnoglass (TGLS), Vitamin Shoppe (VSI), Wyndham Destinations (WYND)
After the close: ​21st Century Fox (FOXA), ADT (ADT), Blue Bird (BLBD), Craft Brew Alliance (BREW), Darling International (DAR), Diamondback Energy (FANG), ePlus (PLUS), Flower Foods (FLO), Golden Entertainment (GDEN), Green Dot (GDOT), iPass (IPAS), Jack in the Box (JACK), Monster Beverage (MNST), Nuance Communications (NUAN), Outfront Media (OUT), PDC Energy (PDCE), Roku (ROKU), Sunoco (SUN), Tech Target (TTGT), Yelp (YELP)


Upcoming Economic News


UPCOMING ECONOMIC NEWS

Wednesday's economic reports (EST): 

​MBA Mortgage Applications - 7:00am


METALS / OIL

Gold closed at $1218.30 an ounce, up $.60

Silver settled at $15.37 an ounce, up $0.03

Copper finished at $2.75 a pound, up $0.05

Crude Oil is at $69.17 barrel, up $0.29

Bitcoin Investment Trust (GBTC) ended at $10.13 up $0.16

​​​Article of the Day

If you should experience that "rush" of beating the market, please proceed with caution.  [read more]

   Make it a great day!

   Todd Mitchell

QUOTE OF THE DAY

Earnings Stay Strong

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08-06-2018 Trade of the Day

Bulls Keep Momentum

MARKET SUMMARY

U.S. markets were slightly weak on Monday’s open on news China is ready to impose retaliatory tariffs on $60 billion of U.S. goods, in response to the U.S.’s planned 25% tariffs on $200 billion of Chinese goods. National Security Adviser John Bolton said the U.S. will take the trade war far enough to get China to change.

On the other hand, China said it is prepared for a protracted trade war and doesn't fear sacrificing short-term economic interests. Despite the rhetoric, the major indexes found some momentum afterwards that lasted into the afternoon and held into the closing bell.

The Dow climbed 0.2% after trading to a midday high of 25,540. Resistance at 25,600 held with a close above this level being a bullish development for a run towards 25,800-26,000.

The S&P 500 gained 0.4% following its intraday push to 2,853 while holding the 2,850 level. Late January resistance is at 2,870-2,875 on continued closes above 2,850.

The Nasdaq was up for a 5th-straight session after adding 0.6% while testing a high of 7,859. Lower resistance at 7,850-7,900 held with the all-time high at 7,933 just 1% away from triggering at current levels.

The Russell 2000 rose 0.7% after going out at its peak of 1,684 to split resistance at 1,680-1,690. A close above the latter would be a bullish signal with fresh hurdles at 1,700-1,710 and the lifetime high at 1,708.

Communications Services and Consumer Discretionary paced sector strength after soaring 1% and 0.7%, respectively. Technology and Financials advanced 0.6% and 0.5%, respectively.

Real Estate and Materials were the only sector laggards after giving back 0.2%, and 0.03%, respectively.


ANALYST UPGRADES/DOWNGRADES

Comcast (CMCSA) upgraded to Overweight from Neutral at Atlantic Equities
Parker-Hannifin (PH) upgraded to Outperform from In Line at Evercore ISI
Square (SQ) upgraded to Buy from Neutral at Buckingham
Acadia (ACAD) downgraded to Neutral from Overweight at Piper Jaffray
CommScope (COMM) downgraded to Hold from Buy at Jefferies
Intel (INTC) downgraded to Equal Weight from Overweight at Barclays



EARNINGS

Tuesday's earnings announcements (EST): 

Before the open: Amicus Therapeutics (FOLD), BioScrip (BIOS), Crocs (CROX), Dean Foods (DF), Discovery Communications (DISCA), Emerison Electric (EMR), Gray Television (GTN), Heska (HSKA), Johnson Outdoors (JOUT), LGI Homes (LGIH), Owens & Minor (OMI), Radius Health (RDUS), Sotherly Hotels (SOHO), U.S. Concrete (USCR)
After the close: 3D Systems (DDD), Avis Budget Group (CAR), Camping World Holdings (CWH), CarGurus (CARG), Diodes (DIOD), Fossil (FOSL), Great Ajax (AJX), Hostess Brands (TWNK), Inogen (INGN), Jazz Pharmaceuticals (JAZZ), Kronos Worldwide (KRO), Match Group (MTCH), New Relic (NEWR), Opko Health (OPK), Papa John’s International (PZZA), Primerica (PRI), Redwood Trust (RWT), Shutterfly (SFLY), Snap (SNAP), Team (TISI), Walt Disney (DIS), Wendy’s (WEN)


UPCOMING ECONOMIC NEWS

Tuesday's economic reports (EST): 

​Redbook - 8:55am
Jolts - 10:00am
Consumer Credit - 3:00pm


METALS / OIL

Gold closed at $1217.70 an ounce, down $5.50

Silver settled at $15.35 an ounce, down $0.11

Copper finished at $2.73 a pound, down $0.02

Crude Oil is at $68.88 barrel, up $0.20

Bitcoin Investment Trust (GBTC) ended at $9.97 down $0.18

​​​Article of the Day

Options provide the same kind of safety net for trades and investments. They also increase your leverage by enabling you to control the shares of a specific stock without tying up a large amount of capital in your trading account.  [read more]

   Make it a great day!

   Todd Mitchell

QUOTE OF THE DAY

Bulls Keep Momentum

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08-05-2018 Trade of the Day

Dow / S&P On 5-Week Winning Streaks

MARKET SUMMARY

U.S. markets were slightly weak following Friday’s open after China announced a fresh round of $60 billion in new tariff counter-measures and a lackluster U.S. jobs number. The import taxes would range in rates from 5% to 25% with many of the goods being agricultural-related, along with metals and chemicals.

The broader market showed more strength from the start with Tech and the small-caps remaining in a downtrend throughout much of the session.

The mixed close was offset by the continued drop in volatility which is approaching the early May flash-crash low north of 10.

The Dow advanced 0.5% after making a steady run to 25,467 ahead of the closing bell. The move back above 25,400 was a bullish signal with July resistance at 24,600 being a more crucial level in holding.

The S&P 500 also added 0.5% after holding positive territory throughout Friday while going out at its high of 2,840. Late July resistance at 2,850 is back in play with a move above this level signaling continued momentum.

Both the S&P 500 and Dow were up for the 5th-straight week after rising 0.8% and 10 points, or 0.04%, respectively.

The Nasdaq rose 0.1% to extend its winning streak to 4-straight sessions with the high tapping 7,824. Fresh resistance is at 7,850-7,900 with a move above the latter getting fresh all-time highs in play with a possible chance at 8,000 triggering.

The Russell 2000 failed resistance at 1,690 on the opening pop to 1,687 before declining 0.5%. Lower support at 1,675-1,670 and the 50-day moving average held with the index showing higher highs and higher lows to end the week despite the pullback.

The Russell 2000 soared 1.3% for the week and the Nasdaq rose 1% to snap a 2-week losing streak.

Real Estate was the strongest sector after rallying 1.1% followed by Consumer Staples and Utilities with gains of 1.2% and 1.1%, respectively. Energy was the only sector laggard after falling 0.5%.

Real Estate surged 3.4% for the week while Health Care jumped 2.1% and Consumer Staples advanced 1.7% to round out sector winners. Communications Services sank 2.6% to pace sector weakness with Energy off 1.7% and Technology down 0.9%.


ANALYST UPGRADES/DOWNGRADES

Allergan (AGN) upgraded to Buy from Neutral at Mizuho
Eversource (ES) upgraded to Neutral from Underperform at BofA/Merrill
TripAdvisor (TRIP) upgraded to Hold from Underperform at Needham
Gildan Activewear (GIL) downgraded to Hold from Buy at Desjardins
Luna Innovations (LUNA) downgraded to Market Perform from Outperform at Northland
Motorola Solutions (MSI) downgraded to Underweight from Neutral at JPMorgan



EARNINGS

Monday's earnings announcements (EST): 

Before the open: ​​​​Boise Cascade (BCC), Cooper Tire & Rubber (CTB), Henry Schein (HSIC), Jacobs Engineering (JEC), Newell Brands (NWL), Sotherby’s Holdings (BID), Twin Disc (TWIN), Tyson Foods (TSN)
After the close: ​​​​American States Water (AWR), Black Hills (BKH), Cabot (CBT), CryoLife (CRY), Douglas Dynamics (PLOW), Etsy (ETSY), Five9 (FIVN), Hertz Global Holdings (HTZ), Itron (ITRI), Luminex (LMNX), Marriott International (MAR), Otter Tail (OTTR), Playa Hotel & Resorts (PLYA), Rapid7 (RPD), Tenet Healthcare (THC), Twilio (TWLO), Weight Watchers International (WTW), Zillow (Z)



UPCOMING ECONOMIC NEWS

Monday's economic reports (EST): 

​TD Ameritrade IMX - 12:30pm


METALS / OIL

Gold closed at $1223.20 an ounce, up $3.10

Silver settled at $15.43 an ounce, up $0.04

Copper finished at $2.75 a pound, up $0.01

Crude Oil is at $68.68 barrel, down $0.29

Bitcoin Investment Trust (GBTC) ended at $10.15 down $0.28

​​​Article of the Day

Once you own options, there are three methods that can be used to make a profit or avoid loss: exercise them, offset them with other options, or let them expire worthless.  [read more]

   Make it a great day!

   Todd Mitchell

QUOTE OF THE DAY

Dow/ S&P On 5-Week Winning Streaks

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08-02-2018 Trade of the Day

Bending but Not Breaking

MARKET SUMMARY

U.S. markets recovered from steep opening losses on continued tariff talk to finish mixed for a 2nd-straight session. Renewed trade war fears were heightened after the White House confirmed it was prepared to place 25% tariffs, up from 10%, on an additional $200 billion in Chinese imports.

The opening lows nearly triggered panic selling pressure before the major indexes eventually turned mixed within the first 45 minutes, led by Tech and the small-caps. Volatility also held key levels of resistance before settling just above/ below near-term support.

The Nasdaq surged 1.2% despite opening at its session low of 7,659. The 50-day moving average was in play for a 4th-straight session before the rebound to 7,808 and close just above the 7,800 level.

The Russell 2000 rallied 0.8% after closing at its session high of 1,682. Upper support at 1,660-1,650 held on the opening panic to 1,662 with the close above 1,680 being a slightly bullish signal.

The S&P 500 gained 0.5% despite the backtest to 2,796 while closing at 2,827 and splitting resistance at 2,825-2,830. The index opened right on rock solid support at 2,800 while holding this level for the 13th-straight session and 14 of the past 15.

The Dow dropped for the 3rd time in 4 sessions after sliding 7 points, or 0.03% and trading to an opening low of 25,120. Near-term support at 25,200-25,000 was split before a 240-point turnaround to 25,360.

Technology Consumer Staples soared 1.3% and 1.1%, respectively, to lead sector strength. Consumer Discretionary and Communications Services were higher by 0.7%.

Materials and Energy sank 0.6% to lead sector laggards while Real Estate fell 0.5%.


ANALYST UPGRADES/DOWNGRADES

Tesla (TSLA) upgraded to Outperform from Perform at Oppenheimer
Freeport McMoRan (FCX) upgraded to Neutral from Underperform at BofA/Merrill
Qorvo (QRVO) upgraded to Hold from Sell at Summit Insights
Hanesbrands (HBI) downgraded to Equal Weight from Overweight at Barclays
Royal Dutch Shell (RDSA) downgraded to Equal Weight from Overweight at Morgan Stanley
Verisk Analytics (VRSK) downgraded to Market Perform from Outperform at Keefe Bruyette



EARNINGS

Friday's earnings announcements (EST): 

Before the open: ​​​Astronics (ATRO), Buckeye Partners (BPL), CBOE Global Markets (CBOE), Dish Network (DISH), Groupon (GRPN), Hudson (HUD), Kraft Heinz (KHC), Noble Energy (NBL), Titan International (TWI), WP Carey (WPC)
After the close: ​​​Omega HealthCare Investors (OHI)



UPCOMING ECONOMIC NEWS

Friday's economic reports (EST): 

​Jobs Report - 8:30am
International Trade in Goods - 8:30am
PMI Services Index - 9:45am
ISM Non-Manufacturing Index - 10:00am
Baker-Hughes Rig Count - 1:00pm


METALS / OIL

Gold closed at $1220.10 an ounce, down $7.50

Silver settled at $15.39 an ounce, down $0.06

Copper finished at $2.74 a pound, down $0.01

Crude Oil is at $68.97 barrel, up $0.07

Bitcoin Investment Trust (GBTC) ended at $10.35 up $0.25

​​​Article of the Day

In a covered put strategy, you are selling the underlying stock and selling a put option against it.  [read more]

   Make it a great day!

   Todd Mitchell

QUOTE OF THE DAY

Bending but Not Breaking

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08-01-2018 Trade of the Day

Market Mixed on Fed Speak and Tariff Tiffs

MARKET SUMMARY

U.S. markets settled mixed following renewed tariff and trade threats between the U.S. and China. China accused the U.S. of attempting to blackmail on trade, while Trump advisors are urging a steep 25% tariff, up from 10%, on another $200 billion in Chinese goods.

The rationale of the proposed new tariffs is to offset the depreciation of the yuan since the process started. The latest Fed news also weighed on sentiment with slight volatility ahead of the minutes.

The Nasdaq rose 0.5% after trading to a first half high of 7,732. The index held the 7,700 level into the close and its 50-day moving average for a 2nd-straight session.

The Russell 2000 was down 0.1% following the backtest to 1,657. Upper support at 1,660-1,650 held with the close back below 50-day moving average being a slight concern.

The S&P 500 slipped 0.1% after failing lower resistance at 2,825-2,830 on the session high. Support at 2,800 held for the 12th-straight session on the fade to 2,805 afterwards.

The Dow fell 0.3% after erasing a morning gain of 73 points to 24,488. The close below 25,400 keeps risk open to 25,200-25,000.

Technology paced sector strength after rising 0.9%. Real Estate added 0.7%.

Energy and Industrials tumbled 1.4% to lead sector laggards while Materials stumbled 1%.


ANALYST UPGRADES/DOWNGRADES

AutoZone (AZO) upgraded to Buy from Hold at Deutsche Bank
Electronic Arts (EA) upgraded to Buy from Hold at Argus
Sarepta (SRPT) upgraded to Overweight from Equal Weight at Morgan Stanley
Brixmor (BRX) downgraded to Hold from Buy at Sandler O'Neill
Incyte (INCY) downgraded to Market Perform from Outperform at JMP Securities
Shopify (SHOP) downgraded to Neutral from Overweight at Piper Jaffray


EARNINGS

Thursday's earnings announcements (EST): 

Before the open: ​​Avon Products (AVP), Cigna (CI), DowDuPont (DWDP), GasLog (GLOG), HCP (HCP), InterDigital (IDCC), Kellogg (K), MGM Resorts (MGM), Pinnacle Foods (PF), Sealed Air (SEE), TreeHouse Foods (THS), Wayfair (W), Yum Brands (YUM)
After the close: ​​Activision Blizzard (ATVI), Bojangles (BOJA), Carbonite (CARB), EOG Resources (EOG), Fluor (FLR), GoDaddy (GDDY), Motorola Solutions (MSI), PC Connection (CNXN), ResMed (RMD), Shake Shack (SHAK), TC PipeLines (TCP), Western Union (WU)


UPCOMING ECONOMIC NEWS

Thursday's economic reports (EST): 

Challenger Job-Cut Report - 7:30am
Jobless Claims - 8:30am
Factory Orders - 10:00am


METALS / OIL

Gold closed at $1227.60 an ounce, down $6.00

Silver settled at $15.45 an ounce, down $11.00

Copper finished at $2.75 a pound, down $0.08

Crude Oil is at $68.84 barrel, up $0.08

Bitcoin Investment Trust (GBTC) ended at $10.10 down $0.32

​​​Article of the Day

In a covered call trade, you are buying the underlying stock shares and selling call options against it.   [read more]

   Make it a great day!

   Todd Mitchell

QUOTE OF THE DAY

Market Mixed on Fed Speak and Tariff Tiffs

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07-31-2018 Trade of the Day

Bulls Rebound Ahead Of Fed Minutes

MARKET SUMMARY

U.S. markets rebounded for the first time in three sessions following Tuesday’s gains while pushing prior support levels. News that the U.S. and China are trying to restart tariff talks to avoid a full-blown trade war helped sentiment.

A bevy of positive economic news was also welcomed as Wall Street prepares for the release of the FOMC minutes on Wednesday afternoon. Meanwhile, volatility closed below a key level of support ahead of the event.

The Russell 2000 soared 1.1% after trading to a high of 1,675. The close above 1,670 and the 50-day moving average was slightly positive with a move above 1,680 being a more bullish signal.

The Nasdaq gained 0.6% following an intraday push to 7,709. The index recovered and held its 50-day moving average into the closing bell but failed holding the 7,700 level.

The S&P 500 added 0.5% after making a midday run to 2,824. Lower resistance at 2,825-2,830 held with continued closes above the latter being a more bullish development.

The Dow rose 0.4% following an intraday push to 25,490. The close back above the 25,400 level was a slightly bullish signal and keeps fresh resistance at 25,600 in play.

Industrials and Real Estate lead sector strength after surging 2.2% and 1.9%, respectively. Healthcare jumped 1.1% while Material and Utilities rose 0.9%.

Financials and Energy were the only sector laggards after falling 0.7% and 0.2%, respectively.


ANALYST UPGRADES/DOWNGRADES

Affiliated Managers (AMG) upgraded to Outperform from Market Perform at Keefe Bruyette
Northrop Grumman (NOC) upgraded to Buy on valuation at Buckingham
Twitter (TWTR) upgraded to Neutral from Reduce at Nomura Instinet
CBS (CBS) downgraded to Market Perform from Outperform at Cowen
Tupperware Brands (TUP) downgraded to Sell from Hold at Argus
WisdomTree (WETF) downgraded to Sell from Neutral at Citi


EARNINGS

Wednesday's earnings announcements (EST): 

Before the open: ​AMC Entertainment (AMC), Bunge (BG), Caesars Entertainment (CZR), Dominion Energy (D), Ferrari (RACE), Garmin (GRMN), HanesBrands (HBI), Kforce (KFRC), LittelFuse (LFUS), Molson Coors Brewing (TAP), Pitney Bowes (PBI), Radware (RDWR), SodaStream (SODA), Vonage Holdings (VG)
After the close: ​Allstate (ALL), Churchill Downs (CHDN), Energous (WATT), FireEye (FEYE), Globus Medical (GMED), Habit Restaurants (HABT), Herbalife (HLF), Life Storage (LSI), Masimo (MASI), Pilgrim’s Pride (PPC), Seaspan (SSW), Square (SQ), T-Mobile (TMUS), Tesla (TSLA), United Staes Steel (X), Wynn Resorts (WYNN)


UPCOMING ECONOMIC NEWS

Wednesday's economic reports (EST): 

MBA Mortgage Applications - 7:00am
ADP Employment Report - 8:15am
PMI Manufacturing Index - 9:45am
ISM Manufacturing Index - 10:00am
Construction Spending - 10:00am
FOMC Minutes - 2:00pm


METALS / OIL

Gold closed at $1233.60 an ounce, up $2.10

Silver settled at $15.56 an ounce, up $0.02

Copper finished at $2.83 a pound, up $0.04

Crude Oil is at $68.76 barrel, down $1.37

Bitcoin Investment Trust (GBTC) ended at $10.42 down $0.69

​​​Article of the Day

How Mark Cuban, a Billionaire, Saved a Billion Dollars By Utilizing This One Strategy.   [read more]

   Make it a great day!

   Todd Mitchell

QUOTE OF THE DAY

Bulls Rebound Ahead Of Fed Minutes

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