Category Archives for Todd Mitchell’s Blog

04-18-2018 Trade of the Day

Blue-Chips Slip on Weak Earnings

MARKET SUMMARY

U.S. markets showed continued strength on positive trade developments but finished mixed for the session as earnings dragged down the blue-chips. President Trump's trade representative briefed lawmakers to expect a negotiated North America Free Trade Agreement within three weeks with top negotiators expected to meet in Washington on Thursday and Friday. Volatility bubbled higher but remains under key resistance levels.

The Russell 2000 rose 0.4% after holding positive territory throughout the session while reaching an intraday peak of 1,592. The Nasdaq gained 0.2% after trading to a high of 7,319 while closing just below the 7,300 level.

The S&P 500 was up 0.1% after testing a high of 2,717 and holding the 2,700 level for the second-straight session. The Dow slipped 0.1% after trading in a 111-point range with the low tapping 24,721.

THE SCIENCE OF WINNING - PART 5
ANALYST UPGRADES / DOWNGRADES 

eBay (EBAY) upgraded to Overweight from Underweight at Morgan Stanley
First Solar (FSLR) upgraded to Buy from Neutral at BofA/Merrill
M&T Bank (MTB) upgraded to Neutral from Underperform at Baird

Altria Group (MO) downgraded to Neutral from Buy at Citi
Callaway Golf (ELY) downgraded to Neutral from Buy at DA Davidson
GrubHub (GRUB) downgraded to Equal Weight from Overweight at Morgan Stanley

EARNINGS

Thursday’s earnings:
Before the open: Alliance Data Systems (ADS), BB&T (BBT), Chart Industries (GTLS), Danaher (DHR), Genuine Parts Company (GPC), KeyCorp (KEY), Novartis International (NVS), Nucor (NUE), Philip Morris (PM), Snap-On (SNA), Taiwan Semiconductor (TSM), Webster Financial (WBS)
After the close: Brandywine Realty Trust (BDN), Cherokee (CHKE), David’s Tea (DTEA), E*Trade Financial (ETFC), Limelight Networks (LLNW), Preferred Bank (PFBC), Rogers Communications (RCI), Sketchers (SKX), Werner Enterprises (WERN)

UPCOMING ECONOMIC NEWS

Thursday's economic reports (EST): 

Jobless Claims - 8:30am
Philadelphia Fed Business Outlook Survey - 8:30am
Bloomberg Consumer Comfort Index - 9:45am
Leading Indicators - 10:00am

METALS / OIL

Gold closed at $1,353.50 an ounce, up $4.00

Silver settled at $17.25 an ounce, up $0.46

Copper finished at $3.15 a pound, up $0.08

Crude Oil closed at $68.83 a barrel, up $2.31

Bitcoin Investment Trust (GBTC) settled at $13.24 up $0.81


Article of the Day

One great thing about stock option trading is that you will totally control your downside risk. [read more]


Make it a great day!

Todd Mitchell

QUOTE OF THE DAY

04-17-2018 Trade of the Day

Broader Market Back in Positive Territory for 2018

MARKET SUMMARY

U.S. markets rallied for the second-straight session to four-week peaks while clearing key technical hurdles in the process. Solid earnings results were more in focus as geopolitical and trade concerns eased. White House economic advisor, Larry Kudlow, said that the Chinese are offering a constructive reaction to the trade dispute which helped lift market spirits.

The Nasdaq showed the most strength after surging 1.7% while testing a high of 7,298 to easily clear its 50-day moving average. The Russell 2000 closed in positive territory for the sixth-time in seven sessions after rallying 1.1% while making a push just south of 1,583.

The S&P 500 was up 1.1% after trading to an intraday high of 2,713 and holding the 2,700 level into the close. The Dow jumped 0.9% after reaching a peak of 24,858 while closing in on the 25,000 level and prior mid-March support. Both indexes cleared their 50-day moving averages while regaining positive territory for the year.

TRADE OF THE DAY
THE SCIENCE OF WINNING - PART 4
ANALYST UPGRADES / DOWNGRADES 

Disney (DIS) upgraded to Hold from Sell at Pivotal Research
Coca-Cola (KO) upgraded to Neutral from Sell at Goldman Sachs
Twitter (TWTR) upgraded to Equal Weight from Underweight at Morgan Stanley

PepsiCo (PEP) downgraded to Sell from Neutral at Goldman Sachs
Bristol-Myers (BMY) downgraded to Equal Weight from Overweight at Morgan Stanley
WWE (WWE) downgraded to Neutral from Overweight at JPMorgan

EARNINGS

Wednesday’s earnings:
Before the open: Abbott Laboratories (ABT), Fred’s (FRED), Morgan Stanley (MS), QCR Holdings (QCRH), Texteon (TXT)
After the close: Alcoa (AA), American Express (AXP), BancorpSouth (BXS), Cohen & Steers (CNS), Eagle Bancorp (EGBN), Kinder Morgan (KMI), Pier 1 Imports (PIER), RLI (RLI), Steel Dynamics (STLD), Torchmark (TMK), United Rentals (URI), Valmont Industries (VMI)

UPCOMING ECONOMIC NEWS

Wednesday's economic reports (EST): 

MBA Mortgage Applications - 7:00am
Beige Book - 2:00pm

METALS / OIL

Gold closed at $1,349.50 an ounce, down $1.20

Silver settled at $16.79 an ounce, up $0.11

Copper finished at $3.07 a pound, down $0.02

Crude Oil closed at $66.56 a barrel, up $0.34

Bitcoin Investment Trust (GBTC) settled at $12.43 down $0.75


Article of the Day

Case Study:  An Options Strategy That Only The Wealthy & Privileged Know About! [more]


Make it a great day!

Todd Mitchell

QUOTE OF THE DAY

04-16-2018 Trade of the Day

50-Day MA’s Back in Play

MARKET SUMMARY

U.S. markets started the week with strong gains as traders shrugged off the air strikes on Syria over the weekend and instead, focused on the earnings season, which will pick up in earnest this week. Volatility continues to subside with the major indexes making a strong run towards key resistance levels.

The Russell 2000 closed higher for the fifth-time in six sessions after rallying 0.9% while making a late session run to 1,566. The Dow also gained 0.9% after testing a high to 24,675 to clear its 50-day moving average but a level that failed to hold into the close.

The S&P 500 added 0.8% after trading to an intraday high of 2,686 while falling a half-point shy of clearing its 50-day moving average. The Nasdaq was higher by 0.7% after reaching an intraday peak of 7,178 but fell shy of challenging its 50-day moving average just south of the 7,200 level.

TRADE OF THE DAY
THE SCIENCE OF WINNING - PART 3
ANALYST UPGRADES / DOWNGRADES 

Costco (COST) upgraded to Outperform from Market Perform at Wells Fargo
Boston Beer (SAM) upgraded to Neutral from Sell at Goldman Sachs
Ulta Beauty (ULTA) upgraded to Buy from Neutral at Guggenheim

McDonald's (MCD) downgraded to Equal Weight from Overweight at Stephens
J.M. Smucker (SJM) downgraded to Underperform from Neutral at Credit Suisse
Big Lots (BIG) were downgraded to Outperform from Strong Buy at Raymond James

EARNINGS

Tuesday’s earnings:
Before the open: Comerica (CMA), Goldman Sachs (GS), Johnson & Johnson (JNJ), Mellanox Technologies (MLNX), Mercantile Bank (MBWM), Northern Trust (NTRS), Omnicom (OMC), Progressive (PGR), Prologis (PLD), UnitedHealth Group (UNH)
After the close: Adtran (ADTN), Badger Meter (BMI), CSX (CSX), Fulton Financial (FULT), Hancock Holding (HBHC), Interactive Brokers (IBKR), International Business Machines (IBM), Intuitive Surgical (ISRG), Lam Research (LRCX), United Continental (UAL), WesBanco (WSBC)

UPCOMING ECONOMIC NEWS

Tuesday's economic reports (EST): 

Housing Starts - 8:30am
Redbook - 8:55am
Industrial Production - 9:15am

METALS / OIL

Gold closed at $1,350.70 an ounce, up $2.80

Silver settled at $16.68 an ounce, up $0.02

Copper finished at $3.09 a pound, up $0.02

Crude Oil closed at $67.39 a barrel, up $0.26

Bitcoin Investment Trust (GBTC) settled at $13.18, down $0.34


Article of the Day

Call options give the buyer the right, but not the obligation, to purchase an underlying asset.  [more]


Make it a great day!

Todd Mitchell

QUOTE OF THE DAY

04-15-2018 Trade of the Day

Bulls Get Weekly Win

MARKET SUMMARY

The market pulled back on Friday despite solid earnings from the Financial sector. The solid numbers were attributed to rising interest rates and the effects of tax reform, but strong earnings were widely expected with the sector turning lower soon after the open.The market kept its losses to a minimum although the final hour of trading brought session lows with a slight bounce into the close. The major indexes still managed gains for the week and ahead of the first full week of 1Q earnings season.

The S&P 500 slipped 0.3% after tapping a low of 2,645 but has been holding the 2,600 level for nine-straight sessions. The Dow fell 0.5% following the backtest to 24,243 while holding the 24,000 level for the past four sessions.

For the week, the S&P 500 was up 2% while the Dow gained 1.8%. Both indexes failed their 50-day moving averages on the open with the 100-day moving averages closing below the former for the week. We mentioned the mini-death crosses would be a slightly bearish development and something to watch this week.

The Nasdaq gave back 0.5% after trading to an intraday low of 7,078 but has been holding the 7,000 level for four-straight sessions.

The Russell 2000 was lower by 0.5% following the late day bottom to 1,545 and has been holding crucial support at the 1,500 level for nine-straight sessions.The Russell 2000 rallied 3% for the week while the Nasdaq jumped 2.8%. The Nasdaq closed slightly below its 100-day moving average while the Russell 2000 held this key technical level of support on Friday’s pullback.

THE SCIENCE OF WINNING - PART 2
ANALYST UPGRADES / DOWNGRADES 

Eli Lilly (LLY) upgraded to Market Perform from Underperform at BMO Capital
Netflix (NFLX) upgraded to Buy from Hold at Deutsche Bank
Shaw Communications (SJR) upgraded to Buy from Hold at Canaccord

Diamond Offshore (DO) downgraded to Underperform from Neutral at Credit Suisse
Starbucks (SBUX) downgraded to Market Perform from Outperform at Cowen
Tenneco (TEN) downgraded to Neutral from Buy at Goldman Sachs

EARNINGS

Monday’s earnings:
Before the open: Bank of America (BAC), M&T Bank (MTB)
After the close: Celanese (CE), First Defiance Financial (FDEF), Lakeland Industries (LAKE), Netflix (NFLX), Pinnacle Financial Partners (PNFP), SeaChange International (SEAC), Wintrust Financial (WTFC)

UPCOMING ECONOMIC NEWS

Monday's economic reports (EST): 

Retail Sales - 8:30am
Empire State Manufacturing Survey - 8:30am
Business Inventories -10:00am
Housing Market Index - 10:00am

METALS / OIL

Gold closed at $1,347.90 an ounce, up $6.00

Silver settled at $16.66 an ounce, up $0.19

Copper finished at $3.07 a pound, up $0.01

Crude Oil closed at $67.39 a barrel, up $0.26

Bitcoin Investment Trust (GBTC) settled at $13.52, up $1.04


Article of the Day

You need to have logical profit objectives in place before you even enter the market.  [more]


Make it a great day!

Todd Mitchell

QUOTE OF THE DAY

04-12-2018 Trade of the Day

VIX Closes Below 50-Day MA

MARKET SUMMARY

U.S. markets showed strength throughout the session after geopolitical concerns eased and positive developments concerning TPP emerged. News that President Trump has designated economic adviser Larry Kudlow and Trade Representative Robert Lighthizer to review whether to rejoin the Trans-Pacific Partnership trade accord helped lift market spirits. Volatility closed below a key level of support with the market at 3-week highs ahead of tomorrow’s earnings reports from a number of financial companies.

The Dow made a push to 24,592 after zooming 1.2% to move within spitting distance of clearing its 50-day moving average. The Nasdaq jumped 1% following its run to 7,166 while closing in on the 7,200 level and its 50-day moving average.

The S&P 500 soared 0.8% after trading north of 2,674 to regain positive territory for the year by a point but a level that failed to hold into the close. The Russell 2000 rallied 0.7% to extend its winning streak to 4-straight sessions after testing an intraday high of 1,562.

THE SCIENCE OF WINNING - PART 1
ANALYST UPGRADES / DOWNGRADES 

Incyte (INCY) upgraded to Buy from Neutral at UBS
Prologis (PLD) upgraded to Buy from Hold at Jefferies
Mylan (MYL) upgraded to Outperform from Market Perform at Leerink

J.B. Hunt (JBHT) downgraded to Sector Weight from Overweight at KeyBanc
Devon Energy (DVN) downgraded to Outperform from Focus List at Scotia Howard Weil
Bed Bath & Beyond (BBBY) downgraded to Underperform at Raymond James.

EARNINGS

Friday’s earnings:
Before the open: Citigroup (C), First Republic Bank (FRC), Infosys Technologies (INFY), JPMorgan Chase (JPM), PNC Bank (PNC), Wells Fargo (WFC)
After the close: DPW Holdings (DPW)

UPCOMING ECONOMIC NEWS

Friday's economic reports (EST): 

Consumer Sentiment - 10:00am
Jolts - 10:00am
Baker-Hughes Rig Count - 1:00pm

METALS / OIL

Gold closed at $1,341.90 an ounce, down $18.10

Silver settled at $16.47 an ounce, down $0.30

Copper finished at $3.06 a pound, down $0.05

Crude Oil closed at $67.13 a barrel, up $0.35

Bitcoin Investment Trust (GBTC) settled at $12.48, up $1.00


Article of the Day

Profit can be found in options in a variety of ways from a rise or fall in the underlying market.  [ more]


Make it a great day!

Todd Mitchell

QUOTE OF THE DAY

04-11-2018 Trade of the Day

Mini Death Cross Forms in S&P 500

MARKET SUMMARY

U.S. markets were mostly weak during the first half of trading, but improved off the morning lows heading into the Fed minutes. The small-caps gave an early signal the major indexes could extend their winning streak for a 3rd-straight session as they traded in positive territory within an hour of the open. However, there was little reaction to the Fed news afterwards, despite a more cautious tone with the market finishing mixed for the session.

The Russell 2000 gained 0.2% after reaching a peak of 1,551 while closing higher for the 5th time in 6 sessions. The Nasdaq slipped 0.4% despite making a run to 7,128 but was able to hold the 7,000 level for the 2nd-straight session.

The Dow dropped 0.9% after trading in negative territory throughout the day with the low tapping 24,150. The S&P 500 stumbled 0.6% after testing a low of 2,639 with the 50-day moving average officially falling below the 100-day moving average and is typically a bearish development.

TRADE OF THE DAY
When Markets Misbehave
ANALYST UPGRADES / DOWNGRADES 

Citi (C) upgraded to Buy from Hold at HSBCBHP
Billiton (BHP) upgraded to Buy from Hold at Deutsche Bank
AeroVironment (AVAV) upgraded to Buy from Hold at Stifel
Avis Budget (CAR) downgraded to Neutral from Buy at Northcoast
Fortinet (FTNT) downgraded to Equal Weight from Overweight at Morgan Stanley
Mitel (MITL) downgraded to Sector Perform from Outperform at National Bank

EARNINGS

Thursday’s earnings:
Before the open: Apogee Enterprises (APOG), Bank of the Ozarks (OZRK), BlackRock (BLK), Commerce Bancshares (CBSH), Delta Air Lines (DAL), Rite Aid (RAD), Shaw Communications (SJR)
After the close: Vince Holding (VNCE)

UPCOMING ECONOMIC NEWS

Thursday's economic reports (EST): 

Chain Store Sales - 7:00am
Jobless Claims - 8:30am
Import and Export Prices - 8:30am
Bloomberg Consumer Comfort Index - 9:45am

METALS / OIL

Gold closed at $1,360.00 an ounce, up $14.10

Silver settled at $16.77 an ounce, up $0.17

Copper finished at $3.11 a pound, down $0.02

Crude Oil closed at $66.78 a barrel, up $1.20

Bitcoin Investment Trust (GBTC) settled at $11.48 up $0.43


Article of the Day

In this article, Todd lists habits to possess and tools you will need in order to tackle trading successfully. [ more]


Make it a great day!

Todd Mitchell

QUOTE OF THE DAY

04-10-2018 Trade of the Day

Small-Caps Clear 50-Day MA

MARKET SUMMARY

U.S. markets rallied and closed higher for a second-straight session after comments made by Chinese President Xi Jinping. His remarks suggested a lesser aggressive approach with respect to trade and tariffs, which helped to ease concerns about an escalating conflict between the world’s two largest economies. However, volatility remained slightly heightened and above a key level of support ahead of tomorrow’s FOMC minutes.

The Nasdaq jumped 2.1% after making an intraday push to 7,117 and its 100-day moving average while recovering the 7,000 level in the process. The Russell 2000 surged 1.9% after tapping an intraday high of 1,548 while closing back above its 50-day moving average for the first time in a dozen sessions.

The Dow rallied 1.8% on its run to 24,511 to regain the 24,000 level with last week’s peak of 25,611 the next key hurdle to clear. The S&P 500 soared 1.7% after testing a high of 2,665 but remains roughly 2% away from clearing its 50-day moving average.

TRADE OF THE DAY
Winning Trader's Mindset - Part 4
ANALYST UPGRADES / DOWNGRADES 

Illinois Tool Works (ITW) upgraded to Conviction Buy from Buy at Goldman Sachs
Live Nation (LYV) upgraded to Buy from Neutral at Citi
Ulta Beauty (ULTA) upgraded to Overweight from Neutral at Piper Jaffray

Hershey (HSY) downgraded to Sell from Neutral at UBS
Monsanto (MON) downgraded to Market Perform from Outperform at BMO Capital
Radian Group (RDN) downgraded to Sector Perform from Outperform at RBC Capital

EARNINGS

Wednesday’s earnings:
Before the open: Fastenal (FAST), Hanwha Q Cells (HQCL), Kush Bottles (KSHB),
Top Image Systems (TISA)
After the close: Bed Bath & Beyond (BBBY), Richardson Electronics (RELL)

UPCOMING ECONOMIC NEWS

Wednesday's economic reports (EST): 

MBA Mortgage Applications - 7:00am
Consumer Price Index - 8:30am
Atlantic Fed Business Inflation Expectations - 10:00am
FOMC Minutes - 2:00pm

METALS / OIL

Gold closed at $1,345.90 an ounce, up $5.80

Silver settled at $16.60 an ounce, up $0.07

Copper finished at $3.13 a pound, up $0.06

Crude Oil closed at $65.58 a barrel, up $1.25

Bitcoin Investment Trust (GBTC) settled at $11.05 up $0.50


Article of the Day

Review the mistakes beginner traders make and find out how to avoid them.  [read more]


Make it a great day!

Todd Mitchell

QUOTE OF THE DAY

04-09-2018 Trade of the Day

Bulls Rally but Gains Limited

MARKET SUMMARY

U.S. markets showed strength on the open and throughout the first half of action as the official start of 1Q earnings season heats up this week. Today’s rebound from Friday’s drubbing was slightly bullish but the final hour pullback on light volume was more bearish with the indexes closing well off their intraday highs. The technical outlook remains shaky if the market can’t keep any momentum with volatility remaining slightly elevated.

The Nasdaq rallied 0.5% after reaching a peak just south of 7,075 intraday but closed below the 7,000 level for the second-straight session. The S&P 500 added 0.3% after trading to a high of 2,653 while holding the 2,600 level for a 5th-straight session.

The Dow advanced 0.2% after making a run to 24,373 but was unable to hold the 24,000 level for the second-straight session. The Russell 2000 was up 0.1% after tapping an intraday high of 1,533 and has been holding the 1,500 level for five-straight sessions.

TRADE OF THE DAY
Winning Traders Mindset - Part 3
ANALYST UPGRADES / DOWNGRADES 

Agilent (A) upgraded to Buy from Neutral at Goldman Sachs
General Motors (GM) upgraded to Overweight from Equal Weight at Morgan Stanley
TD Ameritrade (AMTD) upgraded to Buy from Neutral at BofA/Merrill

Franklin Resources (BEN) downgraded to Neutral from Buy at BofA/Merrill
Incyte (INCY) downgraded to Hold from Buy at Gabelli
Westlake Chemical (WLK) downgraded to Neutral from Overweight at JPMorgan

EARNINGS

Tuesday’s earnings:
Before the open: MSC Industrial Direct (MSM), Simply Good Foods (SMPL)
After the close: Exfo (EXFO), Layne Christensen (LAYN), Link Motion (LKM), Mitcham Industries (MIND)

UPCOMING ECONOMIC NEWS

Tuesday's economic reports (EST): 

NFIB Small Business Optimism Index - 6:00am
PPI-FD - 8:30am
Redbook - 8:55am
Wholesale Trade - 10:00am

METALS / OIL

Gold closed at $1,340.10 an ounce, up $4.00

Silver settled at $16.53 an ounce, up $0.17

Copper finished at $3.07 a pound, up $0.02

Crude Oil closed at $63.33 a barrel, up $1.38

Bitcoin Investment Trust (GBTC) settled at $10.55 unchanged


Article of the Day

Call options give the buyer the right, but not the obligation, to purchase an underlying asset... [read more]


Make it a great day!

Todd Mitchell

QUOTE OF THE DAY

04-08-2018 Trade of the Day

Bears Get Weekly Win of Friday Pullback

MARKET SUMMARY

U.S. markets suffered steep losses on Friday to erase weekly gains following another round of tough tariff talk ahead of the open. President Trump is considering whether to add tariffs on another $100 billion worth of Chinese goods as punishment for China’s reciprocal tariffs on $50 billion of U.S. goods. The market weakened further following a speech from Fed chair Jerome Powell, who said the U.S. budget was on an unsustainable course and the Fed should stay on a patient path of rate hikes.

The Nasdaq tumbled 2.3% after trading to an intraday low of 7,877 while closing back below the 7,000 level for the fifth time in 10 sessions. The Russell 2000 stumbled 1.9% following the backtest to 1,502 while holding crucial support at the 1,500 level.

For the week, the Nasdaq was lower by 2.1% while the Russell 2000 was off 1.1% with both indexes currently below their 100-day moving averages.

The Dow tanked 2.3% after testing a low of 23,738 while closing back below the 24,000 level for the first time in four sessions. The S&P 500 sank 2.1% after tapping a low of 2,586 but closed above the 2,600 level for the eighth time in nine sessions.

The Dow was down 0.7% for the week while the S&P 500 fell 1.4%. Both indexes remain below their 100-day moving averages with the 50-day moving averages on track to breach these levels. This would form a mini-death cross and is typically a bearish signal.

Winning Traders Mindset - Part 2
ANALYST UPGRADES / DOWNGRADES 

Halyard Health (HYH) upgraded to Overweight from Sector Weight at KeyBanc
Universal Display (OLED) upgraded to Outperform from Perform at Oppenheimer
Valeant (VRX) upgraded to Neutral from Underperform at Mizuho

Incyte (INCY) downgraded to Neutral from Buy at Guggenheim
Ormat Technologies (ORA) downgraded to Perform from Outperform at Oppenheimer
Xilinx (XLNX) downgraded to Underweight from Neutral at JPMorgan

EARNINGS

Monday’s earnings:
No major announcements. First-quarter earnings season starts on Tuesday.

UPCOMING ECONOMIC NEWS

Monday's economic reports (EST): 

TD Ameritrade IMX - 12:30pm

METALS / OIL

Gold closed at $1,336.10 an ounce, up $7.60

Silver settled at $16.36 an ounce, up $0.01

Copper finished at $3.05 a pound, down $0.02

Crude Oil closed at $61.95 a barrel, down $1.59

Bitcoin Investment Trust (GBTC) settled at $10.55 down $0.46


Article of the Day

Between inactivity and constant activity, swing trading enables you to allocate your money into several trades a day to take advantage of current opportunities in the market... [read more]


Make it a great day!

Todd Mitchell

QUOTE OF THE DAY

Up Close To $3,000 Trading 1 E-Mini S&P 500

On today’s video I’m going to show you exactly where I’m trailing my stop to lock in profits in the E-Mini S&P 500 (ESH17) futures contract. I’m UP 60 points as of today’s open – have a great day and I hope the video helps in your trading.

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