10-18-2018 Market Update

VIX Holds 20


U.S. markets were weak for a 2nd-straight session with the beginning of the week lows and recent support levels holding. The selling pressure picked up steam after Treasury Secretary Mnuchin indicated he will not now be attending the Saudi investment conference.

Larry Kudlow’s comments on trade and China’s uncooperativeness also weighed on sentiment while Secretary of State Mike Pompeo’s comments indicated that it may take a couple more days to get to the bottom of the Khashoggi affair. Volatility spiked with key levels of resistance back in play.

The Nasdaq was down for the 9th time in 10 sessions after plummeting 2.1% and tapping a low of 7,452. The close below 7,500 and the 200-day moving average keeps risk open to 7,400-7,350.

The Russell 2000 stumbled 1.8% following the backtest to 1,555. Recent support at 1,550-1,540 held with a close below the latter being a continuing bearish signal.

The S&P 500 sagged 1.4% after testing an intraday low of 2,755. Support at 2,865-2,850 and the 200-day moving average held with a move below the latter being a very bearish development.

The Dow dripped 1.3% following backtest to 25,236. Upper and near-term support at 25,200-25,000 held with a close below the latter signaling lower lows.

Utilities and Consumer Staples were the only sectors to show strength after gaining 0.2% and 0.03%.

Technology and Consumer Discretionary led sector laggards after tumbling 2% and 1.9%, Communication Services tanked 1.8% while Financials and Industrials sank 1.7%.

ANALYST UPGRADES/DOWNGRADES

Nike (NKE) upgraded to Outperform from Perform at Oppenheimer
Safe Bulkers (SB) upgraded to Outperform from In Line at Evercore ISI
United Continental (UAL) upgraded to Outperform from Neutral at Macquarie
Gap (GPS) downgraded to Underweight from Neutral at JPMorgan
IBM (IBM) downgraded to Hold from Buy at Argus
Wingstop (WING) downgraded to Equal Weight from Overweight at Morgan Stanley


EARNINGS

Friday's earnings announcements (EST): 

Before the open: ​Ameris Bancorp (ABCB), Cleveland-Cliffs (CLF), Gentex (GNTX), Honeywell International (HON), Kansas City Southern (KSU), ManpowerGroup (MAN), Procter & Gamble (PG), Schlumberger (SLB), VF Corp (VFC)
After the close: No major announcements

UPCOMING ECONOMIC NEWS
Friday's Economic Reports (EST):
Existing Home Sales - 10:00am
Baker-Hughes Rig Count - 1:00pm


METALS / OIL

Gold closed at $1,230.10 an ounce, up $2.70

Silver settled at $14.60 an ounce, down $0.06

Copper finished at $2.75 a pound, down $0.0.3

Crude Oil is at $68.70 a barrel, down $1.32

Bitcoin Investment Trust (GBTC) ended at $76.98 down $0.23



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

   Todd Mitchell

QUOTE OF THE DAY

VIX Holds 20

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10-17-2018 Market Update

Bulls Struggle to Retain Momentum


U.S. markets were weak throughout Wednesday’s session as traders awaited the latest FOMC minutes while looking into any language that could signal a shift in current policy. There wasn't anything surprising in the report that showed considerable debate over the policy stance, though nothing really to suggest they would not tighten again in December.

The major indexes made an attempt to rally into positive territory after the news but President Trump's comments that he'll cut spending, and that China is not ready for trade talks, may have dulled enthusiasm. Volatility was slightly elevated but held key resistance levels.

The Russell 2000 fell 0.5% after testing an intraday low of 1,571. Fresh support at 1,575-1,570 was breached but held into the closing bell.

The Dow declined 0.4% following backtest to 25,479. Near-term support at 25,600-25,400 was split with both levels also holding into the close.

The S&P 500 slipped less than a point, or 0.03% after trading down to 2,781 shortly after the open. Support at 2,800-2,875 held with a close below 2,870 and the 200-day moving average being a bearish signal.

The Nasdaq dipped 3 points, or 0.04%, following the backtest to 7,563. Support at 7,600-7,550 held with a move below 7,525-7,500 and the 200-day moving average being a warning sign for lower lows.

Financials led sector strength after soaring 1%. Health Care and Consumer Staples rose 0.4%

Consumer Discretionary paced sector laggards after giving back 0.8%.
Industrials and Materials were off 0.7%.

ANALYST UPGRADES/DOWNGRADES

Domino's Pizza (DPZ) upgraded to Buy from Hold at Maxim
Infosys (INFY) upgraded to Market Perform from Underperform at William Blair
Workday (WDAY) upgraded to Outperform from Market Perform at Bernstein
Del Taco (TACO) downgraded to Neutral from Buy at BTIG
Infosys (INFY) downgraded to Neutral from Buy at Goldman Sachs
Netflix (NFLX) downgraded to Sector Weight from Overweight at KeyBanc


EARNINGS

Thursday's earnings announcements (EST): 

Before the open: Alliance Data Systems (ADS), BB&T (BBT), Chart Industries (GTLS), Dover (DOV), Genuine Parts Company (GPC), KeyCorp (KEY), Nucor (NUE), Philip Morris International (PM), Snap-On (SNA), Textron (TXT), Webster Financial (WBS)
After the close: American Express (AXP), Celanese (CE), E*Trade (ETFC), Intuitive Surgical (ISRG), Limelight Networks (LLNW), Paypal (PYPL), Sketchers USA (SKX), WD-40 (WDFC)

UPCOMING ECONOMIC NEWS
Thursday's Economic Reports (EST):
Jobless Claims - 8:30am
Philadelphia Fed Business Outlook Survey - 8:30am
Leading Indicators - 10:00am


METALS / OIL

Gold closed at $1,277.40 an ounce, down $3.60

Silver settled at $14.66 an ounce, down $0.04

Copper finished at $2.78 a pound, unchanged

Crude Oil is at $70.02 a barrel, down $1.84

Bitcoin Investment Trust (GBTC) ended at $7.2 down $0.07



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

   Todd Mitchell

QUOTE OF THE DAY

Bulls Struggle to Retain Momentum

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10-16-2018 Market Update

Bulls Make Statement


U.S. markets had their best trading since March following strong economic news on continued strength in the labor market. Solid numbers to start 3Q earnings season also helped sentiment with the major indexes showing strength throughout the session.

Fresh resistance and prior support levels are back in play following the strong gains. Meanwhile, volatility closed below major support levels and is showing signs of a continued rally.

The Nasdaq zoomed 2.9% after trading to an intraday high of 7,658. Lower resistance at 7,650-7,700 held on the close back above the 200-day moving average.

The Russell 2000 rallied 2.8% following the late day push to 1,598. Fresh resistance at 1,600 held with additional hurdles at 1,620 and the 200-day moving average.

The S&P 500 soared 2.2% after testing a high of 2,813 while holding the 2,800 level into the closing bell. Fresh resistance is at 2,825-2,850 on the close back above the 200-day moving average.

The Dow also zoomed 2.2% following the run to 25,817. The close above 25,800 was slightly bullish and gets fresh resistance at 26,000 and the 50-day moving average back in play.

Technology led sector strength after jumping 3.1%. Health Care and Communication Services were higher by 2.7% and 2.6%, respectively.

There was no sector weakness.

ANALYST UPGRADES/DOWNGRADES

Cracker Barrel (CBRL) upgraded to Outperform from Market Perform at Telsey Advisory
Symantec (SYMC) upgraded to Market Perform from Underperform at Cowen
Tapestry (TPR) upgraded to Buy from Hold at Needham
​Amneal Pharmaceuticals (AMRX) downgraded to Hold from Buy at SunTrust
Pinnacle Foods (PF) downgraded to Hold from Buy at Jefferies
Spero Therapeutics (SPRO) downgraded to Underperform from Neutral at BofA/Merrill


EARNINGS

Wednesday's earnings announcements (EST): 

Before the open: ​​​​Abbott Laboratories (ABT), Badger Meter (BMI), M&T Bank (MTB), Northern Trust (NTRS), U.S. Bancorp (USB), Winnebago Industries (WGO)
After the close: ​Alcoa (AA), Crown Holdings (CCK), Kaiser Aluminum (KALU), RLI (RLI), Steel Dynamics (STLD), United Rentals (URI)

UPCOMING ECONOMIC NEWS
Wednesday's Economic Reports (EST):
MBA Mortgage Applications - 7:00am
Housing Starts - 8:30am
FOMC Meeting Announcement - 2:00pm


METALS / OIL

Gold closed at $1,230.00 an ounce, up $0.70

Silver settled at $14.70 an ounce, down $0.03

Copper finished at $2.78 a pound, down $0.01

Crude Oil is at $71.86 a barrel, up $0.20

Bitcoin Investment Trust (GBTC) ended at $7.28 up $0.03



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

   Todd Mitchell

QUOTE OF THE DAY

Bulls Make Statement

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10-15-2018 Market Update

Bears Still Lurking


U.S. markets were choppy throughout Monday’s action with the major indexes preparing for the flood of 3Q earnings due out this week. Tension between the U.S. and Saudi Arabia over the disappearance of a journalist and fresh China/ U.S. trade relations also weighed on sentiment.

President Trump threatened harsh measures against the guilty party, while the Saudis have said any retaliation would be met with whatever economic power they have, mainly oil. Volatility was slightly elevated during the first half of trading but eased throughout the session while testing key support levels.

The Russell 2000 showed the most strength after adding 0.4% and testing an intraday peak of 1,562. Near-term resistance at 1,560-1,565 held with more important hurdles at 1,575-1,580.

The Nasdaq was weak for much of the session after giving back 0.9% and tapping a low of 7,400. Support at 7,400-7,350 held on the 2nd-straight close below the 200-day moving average.

The S&P 500 declined 0.6% following the morning backtest 2,749 and close below its 200-day moving average. Fresh and upper support at 2,750-2,725 held with a move below the latter signaling lower lows.

The Dow fell 0.4% after tapping a late day low of 25,243. Support at 25,200-25,000 held with a move below the latter signaling additional weakness.

Real Estate and Consumer Staples showed the most sector strength after rising 0.6%. Utilities were up 0.5% and Industrials edged up 0.2% to round out the winners.

Technology and Energy paced sector weakness after falling 1.6% and 0.8%.

ANALYST UPGRADES/DOWNGRADES

Activision Blizzard (ATVI) upgraded to Overweight from Equal Weight at Barclays
Lululemon (LULU) upgraded to Outperform from Neutral at Wedbush
PNC Financial (PNC) upgraded to Outperform from Market Perform at Bernstein
Delphi Technologies (DLPH) downgraded to Equal Weight at Morgan Stanley
Monster Beverage (MNST) downgraded to In Line from Outperform at Evercore ISI
Nutrisystem (NTRI) downgraded to Underperform from Neutral at DA Davidson

EARNINGS

Tuesday's earnings announcements (EST): 

Before the open: ​​​BlackRock (BLK), Comerica (CMA), Domino’s (DPZ), Goldman Sachs (GS), Infosys Technologies (INFY), J.B. Hunt (JBHT), Johnson & Johnson (JNJ), Morgan Stanley (MS), Omnicom Group (OMC), Progressive (PGR), Prologis (PLD), UnitedHealth Group (UNH), W.W. Grainger (GWW)
After the close: Adtran (ADTN), Cree (CREE), CSX (CSX), Del Taco (TACO), Fulton Financial (FULT), Hope Bancorp (HOPE), Interactive Brokers (IBKR), International Business Machines (IBM), Lam Research (LRCX), Marten Transport (MRTN), Netflix (NFLX), United Continental Holdings (UAL)

UPCOMING ECONOMIC NEWS
Tuesday's Economic Reports (EST):
Redbook - 8:55am
Industrial Production - 9:15am
Housing Market Index - 10:00am
Jolts - 10:00am


METALS / OIL

Gold closed at $1,230.30 an ounce, up $8.30

Silver settled at $14.73 an ounce, up $0.09

Copper finished at $2.79 a pound, down $0.01

Crude Oil is at $71.66 a barrel, up $0.15

Bitcoin Investment Trust (GBTC) ended at $7.25 up $0.40



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

   Todd Mitchell

QUOTE OF THE DAY

Bears Still Lurking

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10-14-2018 Trade of the Day

Bulls Rebound/ Bears Get Weekly Win


U.S. markets rebounded on Friday’s open but had a roller coaster ride to cap a volatile week. The major indexes opened sharply higher following two days of massive selling pressure but lost momentum by midday with the blue-chips and the small-caps fading back into negative territory.

Both the Dow and the Russell 2000 regrouped to close higher, with the Nasdaq and S&P 500 holding gains throughout the session. Volatility traded to a lower high than the previous session before settling below key levels of support into the closing bell while the market finished its worst weekly performance since March.

The Dow jumped 1.2% after testing an intraday high of 25,467. Fresh resistance at 25,500-25,600 is in play as long as 25,400-25,350 holds with a close above 25,750 being a more bullish development.

The S&P 500 soared 1.4% following the run to 2,775 ahead of the closing bell. Lower resistance at 2,775-2,800 held with a move above the latter possibly signaling a short-term bottom.

For the week, the Dow fell 4.2% while the S&P 500 sank 4.1%. Both indexes recovered their 200-day moving averages on Friday’s rebound.

The Nasdaq zoomed 2.3% after testing an late session peak of 7,516. Fresh resistance at 7,500-7,550 and the 200-day moving average held with continued closes above these levels signaling a near-term bottom.

The Russell 2000 closed higher for the first time in 7 sessions after adding 0.1% and tapping a session high of 1,567. The May 1st low kissed 1,527 and the May 3rd bottom reached 1,532. Friday’s midday low touched 1,530. A move below 1,525 could lead towards another round of selling pressure. It is important to note the small-caps cleared the 1,700 level on the 12% rebound from early May into mid-June afterwards. However, the action on Friday was slightly bearish.

Tech was down 3.7% for the week while the small-caps gave back 4.7%. Both the Nasdaq and Russell 2000 closed below their 200-day moving averages for a 2nd-straight session.

Technology and Communication Services showed the most sector strength after rising 3.2% and 2.2%. Consumer Discretionary and Health Care rallied 1.9% and 1.5%.

Utilities and Real Estate declined 0.1% and were the only sector laggards.

For the week, Materials and Industrials sank 6.7% and 6.4% while Energy dropped 5.5% to pace sector laggards. There were no sectors that closed positive for the week.

ANALYST UPGRADES/DOWNGRADES

Microsoft (MSFT) upgraded to Outperform from Neutral at Macquarie
Netflix (NFLX) upgraded to Buy from Neutral at Citi
Snap (SNAP) upgraded to Buy from Hold at Pivotal Research
Molina Healthcare (MOH) downgraded to Hold from Buy at Jefferies
Oneok (OKE) downgraded to Equal Weight from Overweight at Barclays
Veon (VEON) downgraded to Neutral from Buy at Goldman Sachs

EARNINGS

Monday's earnings announcements (EST): 

Before the open: ​​Bank of America (BAC), Charles Schwab (SCHW), Rafael Holdings (RFL)
After the close: ​​​First Defiance Financial ( FDEF)

UPCOMING ECONOMIC NEWS
Monday's Economic Reports (EST):
Retail Sales - 8:30am
Empire State Manufacturing Survey - 8:30am
Business Inventories -10:00am


METALS / OIL

Gold closed at $1,222.20 an ounce, down $5.60

Silver settled at $14.64 an ounce, up $0.03

Copper finished at $2.80 a pound, unchanged

Crude Oil is at $71.51 a barrel, up $0.52

Bitcoin Investment Trust (GBTC) ended at $6.85 up $0.07



  I hope this helps you prepare for tomorrow. Have a great evening.

   Todd Mitchell

QUOTE OF THE DAY

Bulls Rebound/ Bears Get Weekly Win

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10-11-2018 Trade of the Day

Bears Stay Aggressive


U.S. markets showed continued selling pressure on Thursday’s open before rebounding shortly afterwards and testing positive territory. However, sellers emerged in the second hour of trading and another selloff resumed.

The major indexes are suffering through their worst week since March with at least 65% of the S&P 500 now in correction territory or worse. Volatility reached its highest level in 8 months with Tech and the small-caps entering correction territory.

The Russell 2000 extended its losing streak to 6-straight sessions after giving back 1.9% and closing at a session low of 1,545. May and upper support at 1,550-1,540 was breached with a move below the latter signaling additional weakness.

The Dow dropped 2.1% following the intraday backtest of 24,899. Fresh and upper support at 25,000-24,800 was split with a move below the latter being a continued bearish development.

The S&P 500 also sank 2.1% after testing a second half low 2,710. July support at 2,725-2,700 is back in play with a close below the latter signaling lower lows.

The Nasdaq fell 1.3% following the intraday pullback to 7,274. Fresh and May support at 7,300-7,250 held with risk to 7,200-7,000 on continued selling pressure.

For the 2nd-straight session there was no sector strength.

Energy was the weakest sector after falling 3.4% while Financials and Real Estate were off 2.9%. Health Care dropped 2.7%

ANALYST UPGRADES/DOWNGRADES

​GoDaddy (GDDY) upgraded to Buy from Neutral at Citi
Lear (LEA) upgraded to Buy from Neutral at Goldman Sachs
SiteOne Landscape (SITE) upgraded to Neutral from Sell at UBS
Ferrari (RACE) downgraded to Hold from Buy at Jefferies
Tata Motors (TTM) downgraded to Hold from Buy at HSBC
Valero (VLO) downgraded to Hold from Buy at Tudor Pickering

EARNINGS

Friday's earnings announcements (EST): 

Before the open: ​Citigroup (CITI), First Republic Bank (FRC), JPMorgan Chase (JPM), PNC Bank (PNC), Wells Fargo (WFC)
After the close: ​​No major announcements

UPCOMING ECONOMIC NEWS
Friday's Economic Reports (EST):
Import and Export Prices - 8:30am
Consumer Sentiment - 10:00am
Charles Evans, Bostic Speak
Baker-Hughes Rig Count - 1:00pm


METALS / OIL

Gold closed at $1,277.60 an ounce, up $34.20

Silver settled at $14.61 an ounce, up $0.28

Copper finished at $2.80 a pound, up $0.02

Crude Oil is at $70.99 a barrel, down $2.18

Bitcoin Investment Trust (GBTC) ended at $6.78 down $0.53



   I hope this helps you prepare for tomorrow. Have a great evening.

   Todd Mitchell

QUOTE OF THE DAY

Bears Stay Aggressive

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10-10-2018 Trade of the Day

Bears Stay Aggressive


U.S. markets showed continued weakness on Wednesday and gained downside momentum into the closing bell, leading to the market's worst trading day since June. Trade concerns and rising interest rates have been a headwind for the market over the past two weeks and finally reached a boiling point.

Fueling the selloff late was news that the U.S. Justice Department charged a Chinese intelligence officer of economic espionage for theft of trade secrets from leading U.S. aerospace companies. The news is hardly likely to tamp down rising Sino-U.S. trade/tariff animosity as volatility soared past a key level of resistance.

The Nasdaq plummeted 4.1% after tapping a low of 7,420. Fresh and upper June support at 7,400-7,350 held on the close below the 200-day moving average with a move below the latter being a continued bearish development.

The S&P 500 slumped 3.3% following the pullback to 2,784. Upper support at 2,775-2,750 and the 200-day moving average held with a close below the latter being a warning sign for lower lows.

The Russell 2000 sank 2.9% while closing on its session low of 1,575. May support at 1,570-1,560 held with a drop below the latter likely leading to 1,540.

The Dow tumbled 3.2% after testing an intraday low of 25,593. Fresh and upper support at 25,600-25,400 was stretched by a couple of points into the close with a move below the latter being a continued bearish signal.

There was no sector strength. Technology and Communications Services were slammed for losses of 4.9% and 4%, respectively. Utilities fell 0.6% and were the least affected.

ANALYST UPGRADES/DOWNGRADES

Discovery (DISCA) upgraded to Outperform from Neutral at Credit Suisse
McDonald's (MCD) upgraded to Buy from Neutral at Guggenheim
Intuitive Surgical (ISRG) upgraded to Overweight from Neutral at Piper Jaffray
International Paper (IP) downgraded to Neutral from Buy at Goldman Sachs
Sherwin-Williams (SHW) downgraded to Neutral from Buy at Citi
Vipshop (VIPS) downgraded to Neutral from Overweight at JPMorgan

EARNINGS

Thursday's earnings announcements (EST): 

Before the open: Commerce Bancshares (CBSH), Delta Air Lines (DAL), Emmis Communications (EMMS), Endava (DAVA), Walgreens Boot Alliance (WBA)
After the close: ​Exfo (EXFO)

UPCOMING ECONOMIC NEWS
Thursday's Economic Reports (EST):
Claims - 8:30am
Consumer Price Index - 8:30am


METALS / OIL

Gold closed at $1,193.40 an ounce, up $1.90

Silver settled at $14.33 an ounce, down $0.07

Copper finished at $2.78 a pound, down $0.03

Crude Oil is at $72.59 a barrel, down $2.37

Bitcoin Investment Trust (GBTC) ended at $7.31 down $0.41



   I hope this helps you prepare for tomorrow. Have a great evening.

   Todd Mitchell

QUOTE OF THE DAY

Bears Stay Aggressive

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10-09-2018 Trade of the Day

VIX Holding the 17.50 Level


U.S. markets struggled for direction on Tuesday with the major indexes choppy throughout the session as Wall Street continued to monitor bond yields and the implication that rising yields might have on stocks.

Trade tensions were also a slight concern as the White House has apparently signaled to China that President Trump won't meet with President Xi at the G20 summit unless China publishes a list of specific trade concessions.

The resignation of United Nations Ambassador Haley also caused some nervousness, but it was an amicable departure. Volatility stayed elevated but continued to hold key resistance levels.

The Russell 2000 dropped 0.5% while closing a half-point off its session low of 1,621. Upper support at 1,620-1,610 and the 200-day moving average held for the 3rd-straight session.

The Dow declined 0.2% after testing a morning low of 26,324. Support at 26,400-26,350 was breached but levels that held into the closing bell.

The S&P 500 traded in a 20-point range before sliding 0.1% on the pullback to 2,874. Upper support at 2,875-2,865 and the 50-day moving average held with a close below 2,850 being a warning signal for lower lows.

The Nasdaq gained 2 points, or 0.03%, and showed the most intraday strength after testing a high of 7,799. Near-term and lower resistance at 7,800 held with continued closes above this level signaling a possible short-term bottom.

Energy led sector strength after jumping 1%. Utilities and Technology rose 0.4%.

Materials easily led sector weakness after plummeting 3.3% while Industrials tumbled 1.5%.

ANALYST UPGRADES/DOWNGRADES

Conagra Brands (CAG) upgraded to Buy from Neutral at UBS
General Electric (GE) upgraded to Overweight from Equal Weight at Barclays
Willis Towers Watson (WLTW) upgraded to Outperform from Neutral at Credit Suisse
Glu Mobile (GLUU) downgraded to Neutral from Buy at Roth Capital
Kimberly-Clark (KMB) downgraded to Neutral from Buy at Goldman Sachs
Waters (WAT) downgraded to Market Perform from Outperform at Leerink

EARNINGS

Wednesday's earnings announcements (EST): 

Before the open: ​Fastenal (FAST)
After the close: IDT (IDT)

UPCOMING ECONOMIC NEWS
Wednesday's Economic Reports (EST):
MBA Mortgage Applications - 7:00am
PPI-FD - 8:30am
Atlantic Fed Business Inflation Expectations - 10:00am
Wholesale Trade - 10:00am


METALS / OIL

Gold closed at $1,191.50 an ounce, up $2.90

Silver settled at $14.40 an ounce, up $0.07

Copper finished at $2.81 a pound, up $0.04

Crude Oil is at $74.72 a barrel, up $0.43

Bitcoin Investment Trust (GBTC) ended at $7.72 down $0.16



   I hope this helps you prepare for tomorrow. Have a great evening.

   Todd Mitchell

QUOTE OF THE DAY

VIX Holding the 17.50 Level

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10-08-2018 Trade of the Day

Crucial Support Levels Holding


U.S. markets struggled throughout Monday’s action despite bond markets being closed for the Columbus Day holiday. Wall Street was looking for a rebound and got some nice pin action in the final hour of trading but the weakness was once again being blamed on the recent rise in bond yields.

Global markets were slammed and also contributed to the tone along with the ongoing U.S. trade fight with China. The mixed finish offered hints of a possible bottoming process, but the VIX remains elevated after triggering another level of fresh resistance.

The Dow climbed 0.2% after erasing a 224-point deficit while reaching a peak of 26,529. Prior resistance at 26,600-26,800 is back in play on continued closes above 26,400-26,350.

The S&P 500 slipped a point, or 0.04%, following the backtest to 2,862. Support at 2,875-2,865 and the 50-day moving average was stretched but held with a close below 2,850 being a continuing bearish development.

The Russell 2000 dipped 0.2% after testing a 3rd-straight lower low of 1,616. May support at 1,620-1,610 and the 200-day moving average held for the second-straight session with a close below the latter likely leading to panic selling.

The Nasdaq fell 0.7% following the intraday plunge to 7,654. Late July and lower support at 7,700-7,650 held on a dime with a close above 7,800 signaling a possible short-term bottom.

Consumer Staples and Real Estate jumped 1.4% and 1.3% to show the most sector strength. Utilities and Financials soared 0.8% and 0.7%.

Technology and Communication Services paced sector weakness after falling 1.1% and 0.3%, respectively.

ANALYST UPGRADES/DOWNGRADES

Conagra Brands (CAG) upgraded to Buy from Neutral at UBS
General Electric (GE) upgraded to Overweight from Equal Weight at Barclays
Willis Towers Watson (WLTW) upgraded to Outperform from Neutral at Credit Suisse
Glu Mobile (GLUU) downgraded to Neutral from Buy at Roth Capital
Kimberly-Clark (KMB) downgraded to Neutral from Buy at Goldman Sachs
Waters (WAT) downgraded to Market Perform from Outperform at Leerink

EARNINGS

Tuesday's earnings announcements (EST): 

Before the open: Azz (AZZ), Helen of Troy (HELE)
After the close: IDT (IDT)

UPCOMING ECONOMIC NEWS
Tuesday's Economic Reports (EST):
NFIB Small Business Optimism Index - 6:00am
Redbook - 8:55am


METALS / OIL

Gold closed at $1,188.60 an ounce, down $17.00

Silver settled at $14.33 an ounce, down $0.32

Copper finished at $2.77 a pound, up $0.01

Crude Oil is at $74.25 a barrel, down $0.04

Bitcoin Investment Trust (GBTC) ended at $7.88 up $0.58



   I hope this helps you prepare for tomorrow. Have a great evening.

   Todd Mitchell

QUOTE OF THE DAY

Crucial Support Levels Holding

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10-07-2018 Trade of the Day

Small-Caps Hold Major Support


U.S. markets opened higher on Friday but were weak for a 2nd-straight session as 10-year Treasury yields moved to their highest level since 2011 to put the brakes on the early gains. A fresh round of tough trade talk from White House economic adviser, Larry Kudlow, also caused some nervousness.

Kudlow mentioned there is maybe a discussion about a Trump, XI, G-20 meeting while saying Chinese so-called friends have done lots of mischief. The downside momentum lasted into the second half of action before a slight rebound into the close with the major indexes extending their losses for the week.

The Nasdaq tumbled 1.2% following the pullback to 7,715. Late July and upper support at 7,700-7,650 held with a close below the latter likely leading to a retest of 7,600.

The Russell 2000 plummeted 0.9% after testing a low of 1,618. May support at 1,620-1,610 and the 200-day moving average held with a close below the latter being a continued bearish signal.

The Nasdaq was off 3.2% for the week while the Russell 2000 declined 4%.

The Dow stumbled 0.7% following the back-test to 26,301. Mid-September support at 26,300-26,250 held with a close below the latter likely leading to further weakness towards 26,000-25,800.

The S&P 500 slumped 0.6% after tapping a session low of 2,869. Early September support at 2,875-2,865 and the 50-day moving average held with a close below 2,850 signaling additional weakness.

For the week, the Dow was down just 11 points while the S&P 500 fell 1%.

Utilities zoomed 1.5% while Real Estate climbed 0.03% and were the only sectors that showed strength.

Technology and Communication Services sank 1.3% and 1% to pace sector laggards.

For the week, Utilities were up 1.8% while Energy advanced 1.6%. Consumer Discretionary was hammered for 3.6% loss and Communication Services fell 1.8%.

ANALYST UPGRADES/DOWNGRADES

Canadian Pacific (CP) upgraded to Buy from Hold at TD Securities
Eli Lilly (LLY) upgraded to Outperform from Market Perform at BMO Capital
Fiesta Restaurant (FRGI) upgraded to Neutral from Underweight at Piper Jaffray
CommScope (COMM) downgraded to Neutral from Buy at Nomura Instinet
Mylan (MYL) downgraded to Neutral from Buy at Mizuho
PepsiCo (PEP) downgraded to Neutral from Outperform at Macquarie

EARNINGS

Friday's earnings announcements (EST): 

No major announcements. 3Q earnings season gets underway this week.

UPCOMING ECONOMIC NEWS
TD Ameritrade IMX - 12:30pm


METALS / OIL

Gold closed at $1,205.60 an ounce, up $4.00

Silver settled at $14.65 an ounce, up $0.06

Copper finished at $2.76 a pound, down $0.02

Crude Oil is at $74.29 a barrel, down $0.28

Bitcoin Investment Trust (GBTC) ended at $7.30 down $0.16



   I hope this helps you prepare for tomorrow. Have a great evening.

   Todd Mitchell

QUOTE OF THE DAY

Small-Caps Hold Major Support

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