10-25-2018 Todd’s Market Update

Bulls Rebound to Hold Prior Support Levels


U.S. markets rebounded on Thursday with all of the major indexes posting solid gains while mostly recovering prior support levels. The rally occurred on the busiest day of 3Q earnings season with a number of high-profile companies reporting after the close.

The Dow and S&P are now back in positive territory for the year along with Tech adding to its gains. The small-caps are still down just over 2% while volatility remains slightly elevated.

The Dow and S&P are now back in positive territory for the year along with Tech adding to its gains. The small-caps are still down just over 2% while volatility remains slightly elevated.

The Nasdaq zoomed 3% following the push to 7,364. Fresh resistance at 7,350-7,400 held with a close above the latter being a continuing bullish signal.

The Russell 2000 rallied 2.2% after tapping a high of 1,506. The close back above prior support at 1,500 was slightly bullish with resistance now at 1,520-1,525.

The S&P 500 soared 1.9% while testing a second-half high of 2,722. The close above the 2,700 level was slightly bullish with resistance now at 2,725-2,750.

The Dow surged 1.6% after trading to a session high of 25,104. The close just below the 25,000 level was slightly bearish but keeps fresh resistance at 25,250-25,500 in play.

Technology and Communication Services led sector strength after jumping 3.4% and 3.3%, respectively. Consumer Discretionary was higher by 3%.

Utilities were the only sector laggard after giving back 1.6%.

ANALYST UPGRADES/DOWNGRADES

Caterpillar (CAT) upgraded to Hold from Sell at DZ Bank
Owens Corning (OC) upgraded to Overweight from Equal Weight at Barclays
Tesla (TSLA) upgraded to Outperform from Peer Perform at Wolfe Research
Illinois Tool Works (ITW) downgraded to Neutral from Buy at Seaport Global
STMicroelectronics (STM) downgraded to Underperform from Outperform at Baird
UPS (UPS) downgraded to Neutral from Buy at BofA/Merrill


EARNINGS

Thursday's earnings announcements (EST): 

Before the open: Autoliv (ALV), Cabot Oil & Gas (COG), Franklin Electric (FELE), Goodyear Tire & Rubber (GT), Moody’s (MCO), Phillips 66 (PSX), Ryder System (R), Tenneco (TEN), Weyerhaeuser (WY)

After the close: ​None



UPCOMING ECONOMIC NEWS
Thursday's Economic Reports (EST):
GDP - 8:30am
Consumer Sentiment - 10:00am
Baker-Hughes Rig Count - 1:00pm


METALS / OIL

Gold closed at $1,232.40 an ounce, up $1.30
Silver settled at $14.63 an ounce, down $0.05

Copper finished at $2.75 a pound, down $0.01

Crude Oil is at $66.98 a barrel, up $0.65

Bitcoin Investment Trust (GBTC) ended at $7.04 down $0.15



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

   Todd Mitchell

Bulls Rebound to Hold Prior Support Levels

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10-24-2018 Todd’s Market Update

Selling Pressure Continues, VIX Clears 25


U.S. markets were punished on Wednesday following lackluster corporate earnings and weaker-than-expected economic growth. The losses pulled the Dow and S&P 500 into negative territory for 2018.

Tech is now officially in correction territory after closing more than 10% down from its record high in late August. Volatility surged 27% while closing above a key level of resistance and is signaling additional market weakness.

The Nasdaq plummeted 4.4% while tapping a fresh monthly low of 7,099. Upper support from early May at 7,100-7,000 held with a close below the latter being a continued bearish signal.

The Russell 2000 tanked 3.8% following the the late session backtest to 1,468 and session low. The close below early April support at 1,500-1,490 was a ongoing bearish signal with continued risk to 1,450-1,425 and February lows.

The S&P 500 fell for the 13th time in 15 sessions after sinking 3.1% and trading to a low of 2,651 ahead of the closing bell. Fresh and upper support from early May at 2,650-2,625 held with a move below the latter being a continued bearish development.

The Dow declined 2.4% after bottoming at a late day low of 24,533. Upper support from late June at 24,500-24,250 held with risk to 24,000 on a move below the latter.

Utilities and Real Estate showed the most sector strength after soaring 2.4% and 1.2%. Consumer Staples added 0.4% to round out the winners.

Communication Services led sector weakness after stumbling 4.8%. Technology and Materials dropped 4.5% and 4%, respectively.

ANALYST UPGRADES/DOWNGRADES

3D Systems (DDD) upgraded to Neutral from Underweight at Piper Jaffray
Lockheed Martin (LMT) upgraded to Conviction Buy from Neutral at Goldman Sachs
Lululemon (LULU) upgraded to Buy from Hold at Canaccord​
Advanced Disposal Services (ADSW) downgraded to Neutral from Buy at BofA/Merrill
Navistar (NAV) downgraded to Neutral from Overweight at Piper Jaffray
Sally Beauty (SBH) downgraded to Underperform from Hold at Jefferies


EARNINGS

Wednesday's earnings announcements (EST): 

Before the open: American Airlines (AAL), Anheuser-Busch Companies (BUD), Bemis (BMS), Celgene (CELG), Comcast (CMCSA), Dunkin’ Brands Group (DNKN), GrubHub (GRUB), Hershey (HSY), Imax (IMAX), Lear (LEA), McKesson (MCK), Merck (MRK), Nokia (NOK), Raytheon (RTN), Sherwin-Williams (SHW), Twitter (TWTR), Union Pacific (UNP), Valero Energy (VLO), Waste Management (WM)

After the close: Alphabet (GOOGL), Boston Beer Company (SAM), Chipotle Mexican Grill (CMG), Deckers Brands (DECK), Expedia (EXPE), Flex (FLEX), Intel (INTC), LogMeIn (LOGM), Mattel (MAT) OSI Systems (OSIS), PriceSmart (PSMT), ResMed (RMD), Snap (SNAP), VeriSign (VRSN), Western Digital (WDC)



UPCOMING ECONOMIC NEWS
Wednesday's Economic Reports (EST):
Durable Goods Orders - 8:30am
International Trade in Goods - 8:30am
Jobless Claims - 8:30am
Retail Inventories - 8:30am
Wholesale Inventories - 8:30am
Pending Home Sales Index - 10:00am
Kansas City Fed Manufacturing Index - 11:00am


METALS / OIL

Gold closed at $1,231.10 an ounce, down $5.70
Silver settled at $14.68 an ounce, down $0.11

Copper finished at $2.76 a pound, unchanged

Crude Oil is at $66.33 a barrel, up $0.03

Bitcoin Investment Trust (GBTC) ended at $7.19 down $0.03



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

   Todd Mitchell

Selling Pressure Continues, VIX Clears 25

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10-23-2018 Todd’s Market Update

VIX Bubbles, Holds 25 on Shakeout


U.S. markets opened over 1% lower to start Tuesday’s session as fresh headwinds from key earnings reports weighed on sentiment. Tensions surrounding the killing of a Saudi journalist, midterm elections in the U.S. and continuing U.S.-China trade tensions also pushed the major indexes towards 6-month lows.

The turnaround off the morning bottom helped push the blue-chips into positive territory with the Dow erasing a 549-point loss. The morning flush out could lead to another short-term rally but the technical outlook remains slightly bearish.

The Nasdaq sank 0.4% after opening at 7,328 and testing a low of 7,260. The fresh monthly low held support at 7,250-7,200 with a move below the latter being a continued bearish signal.

The Dow dropped 0.5% while testing an intraday low of 24,768. Backup support from early July at 25,00-24,800 held along with the close slightly above the 200-day moving average.

The S&P 500 stumbled 0.6% after kissing a morning low of 2,691. Major support from late June at 2,725-2,700 was breached with both levels holding into the closing bell.

The Russell 2000 tumbled 0.8% following the pullback to 1,501. Early April support at 1,500-1,490 held with a move below the latter likely leading to panic selling.

Real Estate and Consumer Staples rose 0.6% and 0.4% to lead sector strength.

Energy got whacked for 2.6% and paced sector laggards while Industrials and Materials fell 1.7% and 1%, respectively.

ANALYST UPGRADES/DOWNGRADES

AMD (AMD) upgraded to Equal Weight from Underweight at Barclays
Synopsys (SNPS) upgraded to Neutral from Underweight at JPMorgan
Viacom (VIA, VIAB) upgraded to In-Line from Underperform at Imperial Capital
eBay (EBAY) downgraded to Sector Perform from Outperform at RBC Capital
Liberty Oilfield Services (LBRT) downgraded to Neutral from Buy at Citi
Summit Hotel Properties (INN) downgraded to Neutral from Buy at BofA/Merrill


EARNINGS

Tuesday's earnings announcements (EST): 

Before the open: ​AT&T (T), Boeing (BA), Boston Scientific (BSX), DTE Energy (DTE), Freeport-McMoRan (FCX), General Dynamics (GD), Hilton Worldwide (HLT), Ingersoll-Rand (IR), Lithia Motors (LAD), Nasdaq (NDAQ), Popular (BPOP), Rollins (ROL), Simply Good Foods (SMPL), Travelzoo (TZOO), United Parcel Service (UPS), WR Grace & Company (GRA)

After the close: Advanced Micro Devices (AMD), Aflac (AFL), Barrick Gold (ABX), CoreLogic (CLGX), Equifax (EFX), F5 Networks (FFIV), Ford Motor (F), Ingevity (NGVT), Knight-Swift Transportation (KNX), Las Vegas Sands (LVS), Legg Mason (LM), Microsoft (MSFT), O’Reilly Automotive (ORLY), Plexus (PLXS), Raymond Jones Financial (RJF), ServiceNow (NOW), Sun Communities (SUI), Visa (V), Whirlpool (WHR), Xilinx (XLNX)





UPCOMING ECONOMIC NEWS
Tuesday's Economic Reports (EST):
MBA Mortgage Applications - 7:00am
FHFA House Price Index - 9:00am
PMI Composite Flash - 10:00am
New Home Sales - 10:00am
Beige Book - 2:00pm


METALS / OIL

Gold closed at $1,236.80 an ounce, up $12.20

Silver settled at $14.79 an ounce, up $0.20

Copper finished at $2.76 a pound, down $0.03

Crude Oil is at $66.30 a barrel, down $2.95

Bitcoin Investment Trust (GBTC) ended at $7.22 up $0.04



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

   Todd Mitchell

VIX Bubbles, Holds 25 on Shakeout

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10-22-2018 Todd’s Market Update

Near-Term Resistance Levels Hold


U.S. markets opened higher but quickly gave back gains within the first hour of action. Tech and the small-caps held up well, but the broader market gained downside momentum while bottoming at midday lows.

The mixed finish comes ahead of a busy week for earnings as nearly a third of the S&P 500 and Dow components are set to report. Volatility stayed slightly subdued after holding key levels of resistance for a 2nd-straight session.

The Nasdaq showed strength for much of the session after rising 0.3% while reaching a peak of 7,520. Near-term resistance at 7,500-7,525 and the 200-day moving average held with a close above 7,550 being a more bullish signal.

The Russell 2000 was off 0.2% after testing a high of 1,551 and trading in a 16-point range. Lower support at 1,540-1,535 on the session low with the May low of 1,532 still in focus.

The S&P 500 was lower for the 11th time in 13 sessions after falling 0.4% and tapping a low of 2,749. Upper support at 2,750-2,825 was stretched but held on the 2nd-straight close below the 200-day moving average.

The Dow dipped 0.5% while testing an intraday low of 25,236. Upper support at 25,200-25,000 held with a close below the latter and the 200-day moving average being a bearish development.

Technology jumped 0.8% to lead sector strength while Consumer Discretionary added 0.4% to round out the winners.

Financial and Real Estate paced sector laggards after giving back 2.1% and 1.4%, respectively. Energy was lower by 1.1%.

ANALYST UPGRADES/DOWNGRADES

Chipotle (CMG) upgraded to Outperform from Sector Perform at RBC Capital
Intel (INTC) upgraded to Buy from Neutral at Nomura Instinet
SAP (SAP) upgraded to Buy from Neutral at UBS


eBay (EBAY) downgraded to Neutral from Buy at Monness Crespi
Reliance Steel (RS) downgraded to Neutral from Buy at Longbow
Wingstop (WING) downgraded to Neutral from Outperform at Wedbush



EARNINGS

Tuesday's earnings announcements (EST): 

Before the open: 3M (MMM), Avery Dennison (AVY), Biogen (BIIB), Caterpillar (CAT), CIT Group (CIT), Corning (GLW), Fifth Third Bancorp (FITB), Harley-Davidson (HOG), JetBlue Airways (JBLU), Lockheed Martin (LMT), McDonald’s (MCD), PulteGroup (PHM), Quest Diagnostics (DGX), TransUnion (TRU), United Technologies (UTX), Verizon Communications (VZ), Xerox (XRX)

After the close: Ameriprise Financial (AMP), Capital One Financial (COF), Chubb (CB), Edwards Lifesciences (EW), Flushing Financial (FFIC), Illumina (ILMN), iRobot (IRBT), Juniper Technologies (JNPR), Navient (NAVI), Robert Half International (RHI), Six Flags (SIX), Texas Instruments (TXN), Varian Medical Systems (VAR)





UPCOMING ECONOMIC NEWS
Tuesday's Economic Reports (EST):
Redbook - 8:55am
Richmond Fed Manufacturing Index - 10:00am


METALS / OIL

Gold closed at $1,224.60 an ounce, down $4.10

Silver settled at $14.59 an ounce, down $0.06

Copper finished at $2.79 a pound, up $0.01

Crude Oil is at $69.25 a barrel, up $0.07

Bitcoin Investment Trust (GBTC) ended at $7.18 up $0.13



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

   Todd Mitchell

Near-Term Resistance Levels Hold

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10-21-2018 Market Update

Dow/ S&P 500 Snap 3-Week Slides


U.S. markets opened in positive territory to start Friday’s action as they tried to regain momentum following the prior session pullback. The blue-chips showed strength throughout much of the session while the other major indexes started slipping midday while struggling to regain positive territory.

The mixed closed showed nervousness ahead of the weekend with the height of 3Q earnings season starting to unfold. Volatility remains slightly elevated and is showing signs of higher highs with a major bullish technical pattern in play and a bearish signal for the market.

The Dow gained 0.3% while testing an intraday high of 25,608. Prior and lower resistance at 25,600-25,800 held with continued closes above 26,000 and the 50-day moving average being a more bullish development.

The S&P 500 slipped a point, or 0.04% after failing resistance at 2,800 by a couple of points. The slight close back below the 200-day moving average keeps risk open to backup support at 2,750-2,825 in play.

For the week, the blue-chip index gained 0.4% and the S&P 500 rose fractionally, both successfully snapping three-week retreats.

The Nasdaq was down 0.5% after kissing a session low of 7,428. It was the 2nd-straight close below 200-day moving average with shaky support at 7,400-7,350 on a move below 7,425.

The Russell 2000 extended its losing streak to 3-straight session following the pullback to 1,538. Support at 1,540-1,535 held with a close below the May low of 1,532 being a very bearish signal.

Tech shed 0.6% for the week to extend its losing streak to 3-straight while the small-caps were down 0.3% to extend its weekly losing streak to 5-straight.

Consumer Staples jumped 2.3% to lead sector strength while Utilities and Real Estate were higher by 1.5% and 1%, respectively.

Consumer Discretionary fell 1% and led sector laggards. Energy and Health Care were off 0.9%.

For the week, Consumer Staples zoomed 4.4%, while Real Estate jumped 3.3% and Utilities advanced 3.1%. Consumer Discretionary and Energy were down 2%, while Materials and Technology gave back 1.2%.

ANALYST UPGRADES/DOWNGRADES

Disney (DIS) upgraded to Overweight from Equal Weight at Barclays
O'Reilly Automotive (ORLY) upgraded to Overweight from Neutral
PayPal (PYPL) upgraded to Buy from Neutral at BTIG
eBay (EBAY) downgraded to Hold from Buy at Stifel
Harley-Davidson (HOG) downgraded to Market Perform from Outperform at BMO Capital
Las Vegas Sands (LVS) downgraded to Buy from Conviction Buy at Goldman Sachs


EARNINGS

Monday's earnings announcements (EST): 

Before the open: ​​Bank of Hawaii (BOH), Community Bank System (CBU), Halliburton (HAL), Hasbro (HAS), Kimberly-Clark (KMB), Lennox International (LII), Opus Bank (OPB), PetMed Express (PETS), Polaris Industries (PII), Roper Technologies (ROP), TCF Financial (TCF)
After the close: ​​Agree Realty (ADC), Brown & Brown (BRO), Cadence Design Systems (CDNS), Crane (CR), First Bank (FRBA), HealthStream (HSTM), Hexcel (HXL), HomeStreet (HMST), Logitech (LOGI), Sallie Mae (SLM), TD Ameritrade (AMTD), Veritex Holdings (VBTX), Zions Bancorporation (ZION)

UPCOMING ECONOMIC NEWS
Monday's Economic Reports (EST):
Chicago Fed National Activity Index - 8:30am


METALS / OIL

Gold closed at $1,228.70 an ounce, down $1.40

Silver settled at $14.65 an ounce, up $0.05

Copper finished at $2.78 a pound, up $0.03

Crude Oil is at $69.18 a barrel, up $0.48

Bitcoin Investment Trust (GBTC) ended at $7.05 up $0.07



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

   Todd Mitchell

QUOTE OF THE DAY

Dow/ S&P 500 Snap 3-Week Slides

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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

Click to Tweet

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

Click to Tweet

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