Category Archives for Trade of the Day Newsletter

07-17-2018 Trade of the Day

Tech Taps Fresh All-Time High

MARKET SUMMARY

U.S. markets opened lower for a second-straight session and ahead of Fed Chair Jerome Powell’s early morning testimony, which was fairly optimistic on the economic and policy fronts. The rebound afterwards lasted into the second half of action with the major indexes closing in positive territory.

Earnings are back in focus following mixed 2Q results from various sectors and will pick up steam throughout the week. Volatility plunged 6% and is again pushing multi-month lows with near-term resistance and all-time highs for the market still in play.

The Dow was up 0.2% after closing in positive territory for the 4th-straight session while reaching a high of 25,155. Mid-June resistance at 25,250-25,300 remains in play following the 3rd-straight close above the 25,000 level.

The S&P 500 soared 0.4% following the late day run to 2,814. January resistance at 2,825 is back in play on continued closes above 2,800 and a level that has held in 2 of the past 3 sessions.

The Nasdaq jumped 0.6% after testing an intraday all-time high of 7,867. The 118-point rebound off the low was a very bullish signal with blue-sky territory towards 7,950-8,000 on continued momentum.

The Russell 2000 suffered the least amount of damage on the open while rebounding 0.5% afterwards and trading to a high of 1,690. Fresh resistance at 1,700 held with continued closes above this level keeping lifetime highs north of 1,708 on the radar.

Materials and Consumer Staples paced sector strength after rising 1.3% and 0.9%. Technology gained 0.8%.

Real Estate and Energy led sector laggards after falling 0.7% and 0.4%, respectively. Utilities were off 0.1%.


ANALYST UPGRADES/DOWNGRADES

Bloomin' Brands (BLMN) upgraded to Outperform from Market Perform at Raymond James
Netflix (NFLX) upgraded to Buy from Hold at Stifel and to Outperform from Market Perform at BMO Capital
Wolverine World Wide (WWW) upgraded to Strong Buy from Buy at CL King

CubeSmart (CUBE) downgraded to Hold from Buy at Jefferies
Hormel Foods (HRL) downgraded to Equal Weight on valuation at Stephens
Intel (INTC) downgraded to In Line from Outperform at Evercore ISI


EARNINGS

Wednesday's earnings announcements (EST): 

Before the open: ​​​Comerica (CMA), First Horizon National (FHN), Goldman Sachs (GS), Johnson & Johnson (JNJ), Mercantile Bank (MBWM), Nationstar Mortgage (NSM), Omnicom (OMC), Progressive (PGR), Prologis (PLD), UnitedHealth Group (UNH)
After the close: Alcoa (AA), American Express (AXP), Berkshire Hills Bancorp (BHLB), Cohen & Steers (CNS), Crown Holdings (CCK), eBay (EBAY), Noodles & Company (NDLS), Plexus (PLXS), RLI (RLI), Triumph Bancorp (TBK), United Rentals (URI)


UPCOMING ECONOMIC NEWS

Wednesday's economic reports (EST): 

MBA Mortgage Applications - 7:00am
Housing Starts - 8:30am
Beige Book - 2:00pm

METALS / OIL

Gold closed at $1227.30 an ounce, down $12.40

Silver settled at $15.62 an ounce, down $0.20

Copper finished at $2.75 a pound, down $0.01

Crude Oil is at $68.27 barrel, unchanged

Bitcoin Investment Trust (GBTC) ended at $11.49 up $1.19

​​​Article of the Day

Investing in the market is an exercise in self-control and the balance of emotions over logic. You have to stay grounded and always remind yourself to think “logically.” [read more]

   Make it a great day!

   Todd Mitchell

QUOTE OF THE DAY

Tech Taps Fresh All-Time High

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07-16-2018 Trade of the Day

Tight Trading Range Keeps Bulls at Bay

MARKET SUMMARY

U.S. markets opened soft and traded in a tight range throughout Monday’s action following the much anticipated President Trump/Putin meeting. There was little market reaction to the news conference, as traders shrugged it off and decided to focus on upcoming comments from the Fed.

Oil took a 4% beating and closed at its lowest level in nearly three months after the Trump/ Putin summit didn't appear to offer any fresh news for the oil market. Volatility was slightly elevated but held key resistance on light trading volume.

The Dow was up for the 7th time in 8 sessions after climbing 0.2% while reaching a late day peak of 25,072. The index was trapped in a 93-point range throughout the session but held fresh, and slightly shaky support, at 25,000.

The S&P 500 slipped 0.1% after trading in a 10-point range with the low reaching 2,793. The close back below the 2,800 level keeps risk open to 2,775-2,770.

The Nasdaq closed in the red for just the 6th time in 8 session after dipping 0.3% on the pullback to 7,791. Fresh support at 7,800 held for a 3rd straight session with a breach below this level getting 7,750-7,700 in the mix.

The Russell 2000 fell for the 4th time in 5 sessions following the backtest to 1,672. Upper support at 1,680-1,675 failed to hold on the 0.5% decline with a close below the latter being a slightly bearish development.

Financials surged 1.7% and was the strongest sector. Consumer Discretionary was up 0.2% and was the only other sector that closed in positive territory.

Energy paced sector laggards after giving back 1.2%. Materials were down 0.8%. Health Care, Real Estate and Consumer Staples were all down 0.6%.


ANALYST UPGRADES/DOWNGRADES

Autoliv (ALV) upgraded to Outperform from Neutral at Daiwa
UPS (UPS) upgraded to Buy from Neutral at UBS
Saratoga Investment (SAR) upgraded to Buy from Neutral at Compass Point

Intrexon (XON) downgraded to Underperform from Neutral at BofA/Merrill
Netflix (NFLX) downgraded to Underperform from Neutral at Buckingham
Rockwell Automation (ROK) downgraded to Sell from Neutral at Goldman Sachs


EARNINGS

Tuesday's earnings announcements (EST): 

Before the open: ​​​Comerica (CMA), First Horizon National (FHN), Goldman Sachs (GS), Johnson & Johnson (JNJ), Mercantile Bank (MBWM), Nationstar Mortgage (NSM), Omnicom (OMC), Progressive (PGR), Prologis (PLD), UnitedHealth Group (UNH)
After the close: Avid Bioservices (CDMO), First Defiance Financial (FDEF), Netflix (NFLX), Nervo (NRVO), Tessco Technologies (TESS)


UPCOMING ECONOMIC NEWS

Tuesday's economic reports (EST): 

Redbook - 8:55am
Industrial Production - 9:15am
Housing Market Index - 10:00am

METALS / OIL

Gold closed at $1239.70 an ounce, down $1.50

Silver settled at $15.81 an ounce, unchanged

Copper finished at $2.76 a pound, down $0.02

Crude Oil is at $68.27 barrel, down $2.74

Bitcoin Investment Trust (GBTC) ended at $10.30 up $1.06

​​​Article of the Day

Find out why discipline and commitment are so important for this type of trading.   [read more]

   Make it a great day!

   Todd Mitchell

QUOTE OF THE DAY

Tight Trading Range Keeps Bulls at Bay

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07-15-2018 Trade of the Day

Volatility Nears Multi-Month Lows

MARKET SUMMARY

The market closed mostly higher on Friday despite mixed results from the Financial sector as 2Q earnings season officially got underway. The gains marked the 6th positive session in the past 7 following the July 4th holiday, and is suggesting the market is shaking off much of the uncertainty surrounding trade policy.

The small-caps remain a slight concern after failing to participate in the rally in 3 of the past 4 sessions. However, the Russell 2000, did trade to a fresh all-time high earlier in the week. Volatility is approaching multi-month lows and continues to signal higher highs for the market.

The Dow advanced 0.4% after trading to an intraday high of 25,043 while holding positive territory throughout the session. Resistance from mid-June at 25,000 was cleared with fresh resistance at 25,250-25,350 on continued strength.

The S&P 500 climbed 0.1% following the run to 2,804. Resistance at 2,800 was cleared and held for the first time since the start of February. Continued closes above this level keeps 2,825-2,850 in play with January’s all-time peak north of 2,872.

For the week, the Dow rallied 2.3% and the S&P 500 soared 1.5%.

The Nasdaq was up 2 points, or 0.03%, after pushing a fresh all-time high of 7,843. Fresh support at 7,800 held on the morning weakness and pullback to 7,803. There could be a 200+ point swing this month, depending on Tech earnings, with reward toward the 8,000 level, or risk to 7,600-7,550 and the 50-day moving average.

The Russell 2000 tested a high of 1,697 shortly after the open before fading 0.2%. Resistance remains at 1,700 with continued closes above this level being a bullish development. A move below 1,680-1,675 would be a slightly bearish signal for lower lows.

The Nasdaq zoomed 1.8% while the Russell 2000 gave back 0.4%.

Consumer Staples gained 0.7% to lead sector strength while Energy and Industrials rose 0.5%.

Financials and Real Estate paced sector laggards after falling 0.5% and 0.3%, respectively.


Industrials jumped 2.2% for the week while Technology and Consumer Discretionary surged 2.1% to lead sector strength.

Utilities and Real Estate fell 1.2% and 0.8% for the week and were the only sector laggards.


ANALYST UPGRADES/DOWNGRADES

M.D.C. Holdings (MDC) upgraded to Neutral from Underweight at JPMorgan
BlackRock (BLK) upgraded to Outperform from Market Perform at Keefe Bruyette
United Rentals (URI) and Herc Holdings (HRI) were upgraded to Buy from Neutral at Buckingham

AT&T (T) downgraded to Market Perform from Outperform at Raymond James
Incyte (INCY) downgraded to Equal Weight from Overweight at Morgan Stanley
WisdomTree (WETF) was downgraded to Market Perform from Outperform at Keefe Bruyette


EARNINGS

Monday's earnings announcements (EST): 

Before the open: ​​Bank of America (BAC), BlackRock (BLK), JB Hunt (JBHT), Supercom (SPCB)
After the close: Avid Bioservices (CDMO), First Defiance Financial (FDEF), Netflix (NFLX), Nervo (NRVO), Tessco Technologies (TESS)


UPCOMING ECONOMIC NEWS

Monday's economic reports (EST): 

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

METALS / OIL

Gold closed at $1241.20 an ounce, down $5.40

Silver settled at $15.81 an ounce, down $0.17

Copper finished at $2.78 a pound, unchanged

Crude Oil is at $70.58 barrel, up $0.23

Bitcoin Investment Trust (GBTC) ended at $9.24 down $0.07

​​​Article of the Day

You need to have logical profit objectives in place before you even enter the market. Once you have these profit objectives based on your market entry, that’s when you can start to gauge whether or not stops need to be moved so your winner doesn’t turn into a loser.   [read more]

   Make it a great day!

   Todd Mitchell

QUOTE OF THE DAY

Nasdaq Sets New Record High

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07-12-2018 Trade of the Day

Nasdaq Sets New Record High

MARKET SUMMARY

U.S. markets showed strength throughout much of Thursday’s session on lowered trade rhetoric. China instructed its media to simmer down on the topic while encouraging words from the country’s Vice Minister of Commerce also helped boost sentiment.

Although NATO relations remain a little testy, the major indexes rebounded to push multi-month resistance with fresh all-time highs back in play. Volatility continues to push key support and levels that held ahead of Friday"s parade of earnings from the Financial sector.

The Dow gained 0.9% after testing an intraday peak of 24,939. Resistance from mid-June at 25,000 held with continued closes above this level being a very bullish development.

The S&P 500 was higher by 0.9% following the push to 2,799. Resistance at 2,800 continues to be a brick wall and a level that hasn’t been cleared since mid-March.

The Nasdaq surged 1.4% after trading to an all-time high of 7,825. Resistance at 7,800 was cleared with continued closes above this level keeping blue-sky territory open towards 7,950-8,000.

The Russell 2000 spiked to a high of 1,692 shortly after the open before fading and rebounding again in the second half of action The small-caps were up 0.4% after failing resistance at 1,700.


ANALYST UPGRADES/DOWNGRADES

Hallmark Financial (HALL) upgraded to Outperform from Market Perform at Raymond James
Nabors Industries (NBR) upgraded to Overweight from Equal Weight at Morgan Stanley
Rowan Companies (RDC) were upgraded to Buy from Hold at Tudor Pickering
Broadcom (AVGO) downgraded to In Line from Outperform at Evercore ISI
Cedar Fair (FUN) downgraded to Neutral from Buy at Goldman Sachs
Netflix (NFLX) downgraded to Neutral from Buy at UBS


EARNINGS

Friday's earnings announcements (EST): 

Before the open: ​Citigroup (C), 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
Baker-Hughes Rig Count - 1:00pm

METALS / OIL

Gold closed at $1246.60 an ounce, up $2.20

Silver settled at $15.98 an ounce, up $0.16

Copper finished at $2.78 a pound, up $0.04

Crude Oil is at $70.35 barrel, down $1.24

Bitcoin Investment Trust (GBTC) ended at $9.31 down $0.04

​​​Article of the Day

You need to have logical profit objectives in place before you even enter the market. Once you have these profit objectives based on your market entry, that’s when you can start to gauge whether or not stops need to be moved so your winner doesn’t turn into a loser.   [read more]

   Make it a great day!

   Todd Mitchell

QUOTE OF THE DAY

Nasdaq Sets New Record High

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07-11-2018 Trade of the Day

Momentum Stalls on Renewed Tariff Tantrums

MARKET SUMMARY

​U.S. markets struggled throughout Wednesday’s session after the Trump administration released a new list of Chinese products that may face tariffs. The rally since the July 4th holiday hit a snag after the U.S. targeted 10% tariffs on another $200 billion in Chinese goods.

China, in turn, threatened to retaliate again with the market once again taking a defensive posture. Fresh support levels were tested, and held, with volatility getting stretch before holding key levels of resistance.

The Dow fell 0.9% to snap a 4-session win streak following the back-test to 24,663. Support at 24,700-24,600 and the 50-day moving average held into the close with a move below the latter being a slightly bearish development.

The S&P 500 sank 0.7% after trading to a low of 2,770 intraday. Upper support at 2,775-2,770 failed to hold by a point with a move below 2,765 likely signaling additional weakness.

The Nasdaq closed lower for the first time in 5 sessions after giving back 0.6% and tapping an intraday low of 7,696. Prior support from mid-June at 7,700-7,650 held with a close below this level being a warning sign for lower lows.

The Russell 2000 extended its losing streak to two-straight with a pullback of 0.7% on the back-test and close at 1,683. Near-term support is at 1,680-1,675 with a move below 1,670 being a cautious signal.


ANALYST UPGRADES/DOWNGRADES

Conn's (CONN) upgraded to Buy from Hold at Stifel
Imperial Oil (IMO) upgraded to Equal Weight from Underweight at Barclays
TripAdvisor (TRIP) upgraded to Overweight from Equal Weight at Barclays
Hess (HES) downgraded to Underweight from Equal Weight at Barclays
Jazz Pharmaceuticals (JAZZ) downgraded to Equal Weight at Morgan Stanley
Westlake Chemical (WLK) downgraded to Neutral from Buy at Nomura Instinet


EARNINGS

Thursday's earnings announcements (EST): 

Before the open: Commerce Bancshares (CBSH), Delta Air Lines (DAL), Emmis Communications (EMMS), Northern Technologies (NTIC), Peak Resorts (SKIS)
After the close: ​​Aspen Group (ASPU), Kush Bottles (KSHB)


UPCOMING ECONOMIC NEWS

Thursday's economic reports (EST): 

Jobless Claims - 8:30am
Consumer Price Index - 8:30am
Bloomberg Consumer Comfort Index - 9:45am

METALS / OIL

Gold closed at $1244.40 an ounce, down $11.00

Silver settled at $15.82 an ounce, down $0.27

Copper finished at $2.74 a pound, down $0.10

Crude Oil is at $71.13 barrel, down $2.98

Bitcoin Investment Trust (GBTC) ended at $9.35 up $0.08

​​​Article of the Day

You need to have logical profit objectives in place before you even enter the market. Once you have these profit objectives based on your market entry, that’s when you can start to gauge whether or not stops need to be moved so your winner doesn’t turn into a loser.   [read more]

   Make it a great day!

   Todd Mitchell

QUOTE OF THE DAY

Momentum Stalls on Renewed Tariff Tantrums

Click to Tweet

07-10-2018 Trade of the Day

Small-Caps Tap Fresh All-Time High

MARKET SUMMARY

​U.S. markets showed continued momentum following Tuesday’s jobs data, as the news reflected a stronger economy with more job openings and more potential workers coming off of the sidelines.

The small-caps showed weakness an hour after the open and suggested early that the opening gains might be limited with near-term resistance levels holding. Volatility made a lower low and remains in a relaxed atmosphere.

The Dow extended its win streak to 4-straight sessions after rising 0.6% and testing an intraday peak of 24,945. Resistance at 25,000 held and a level last seen in mid-June.

The S&P 500 was higher by 0.4% following its intraday push to 2,795. Resistance at 2,800 held and a level that hasn’t been cleared since March 13th.

The Nasdaq advanced 3 points, or 0.04%, after trading to a first half peak of 7,777. Resistance at 7,800 held with the all-time record high north of 7,806.

The Russell 2000 was the weakest link after falling 0.5% to snap a five-session win streak. The small-caps closed back below 1,700 after making a fresh lifetime high north of 1,708 by a just over a half-point.


ANALYST UPGRADES/DOWNGRADES

CarMax (KMX) upgraded to Overweight from Underweight at Morgan Stanley
KB Home (KBH) upgraded to Positive from Neutral at Susquehanna
Quest Diagnostics (DGX) upgraded to Outperform from In Line at Evercore ISI
Chipotle (CMG) downgraded to Underperform from Neutral at Mizuho
eBay (EBAY) downgraded to Hold from Buy at SunTrust
Square (SQ) assumed and downgraded to a Hold from Buy at Jefferies


EARNINGS

Wednesday's earnings announcements (EST): 

Before the open: ​AngioDynamics (ANGO), Fastenal (FAST), MSC Industrial (MSM)
After the close: ​Bank of Ozarks (OZRK)


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 $1255.40 an ounce, down $4.20

Silver settled at $16.09 an ounce, down $0.05

Copper finished at $2.84 a pound, down $0.01

Crude Oil is at $74.05 barrel, up $0.20

Bitcoin Investment Trust (GBTC) ended at $9.27 down $1.03

Article of the Day

There are seven main components that affect the premium of an option.   [read more]

   Make it a great day!

   Todd Mitchell

QUOTE OF THE DAY

Small-Caps Tap Fresh All-Time High

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07-09-2018 Trade of the Day

Bulls Keep Momentum

MARKET SUMMARY

U.S. markets opened higher and held positive territory throughout Monday’s action following a weekend without any major headlines representing an escalation in the trade tariffs the U.S. is waging with China and Europe. Economic news was light as the relative market calm has a chance to continue with companies in their quiet period ahead of the 2Q earnings season.

The big day is this Friday when a number of Financials stocks will be reporting with earnings really picking up steam in the next few weeks. Volume was light and remains a slight concern although volatility continues to creep lower and is signaling continued market momentum.

The Dow jumped 1.3% after trading to a high of 24,796 while easily closing back above its 50-day moving average. Continued closes above resistance at 25,000 would be a bullish signal.

The S&P 500 soared 0.9% and is approaching mid-June highs following the run to 2,784. There is a cluster of resistance at 2,785-2,790 with a close above the latter likely leading to a strong push past 2,800.

The Nasdaq was up for the 3rd-straight session after rising 0.9% and making an late day push to 7,757. The index is less than 1% away from fresh all-time highs north of 7,800.

The Russell 2000 was higher by 0.6% after extending its win streak to five-straight sessions while reaching a peak of 1,704. The small-caps held the 1,700 level with the all-time high just north of 1,708.


ANALYST UPGRADES/DOWNGRADES

Capital One (COF) upgraded to Outperform from Perform at Oppenheimer
Dunkin' Brands (DNKN) upgraded to Neutral from Underperform at Longbow
FireEye (FEYE) upgraded to Overweight from Neutral at Piper Jaffray
Procter & Gamble (PG) downgraded to Hold from Buy at Jefferies
Six Flags (SIX) downgraded to Market Perform from Outperform at Wells Fargo
Walgreens Boots Alliance (WBA) downgraded to Neutral from Buy at Citi


EARNINGS

Tuesday's earnings announcements (EST): 

Before the open: ​PepsiCo (PEP), Simply Good Foods (SMPL)
After the close: AAR Corp. (AIR), Exfo (EXFO), Saratoga Investments (SAR), Simulations Plus (SLP), Voxx International (VOXX), WD-40 (WDFC)


UPCOMING ECONOMIC NEWS

Tuesday's economic reports (EST): 

Redbook - 8:55am
Jolts - 10:00am


METALS / OIL

Gold closed at $1259.60 an ounce, up $3.80

Silver settled at $16.14 an ounce, up $0.07

Copper finished at $2.85 a pound, up $0.03

Crude Oil is at $73.00 barrel, unchanged

Bitcoin Investment Trust (GBTC) ended at $10.30 up $0.07

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

Bulls Keep Momentum

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07-08-2018 Trade of the Day

Bulls Showing Breakout Potential

MARKET SUMMARY

The market struggled on Friday’s open after the U.S. imposed new tariffs on Chinese goods. China responded by criticizing the U.S. for starting the largest trade war in history and violating the WTO rules.

The major indexes saw their lows a short time after the open before drifting higher in the second hour of trading and holding positive territory into the closing bell. Volatility settled below major support levels and is suggesting the trade-war jitters are fading now that they are finally here.

The Nasdaq zoomed triple-digits, or 1.3% after making a run to 7,695. The breakout of an 8-day trading range was a bullish development with continued closes above 7,700 getting fresh all-time highs north of 7,800 in play.

The Russell 2000 extended its win streak to 4-straight sessions after rallying 0.9% and testing an intraday peak of 1,695. The index is within a stone’s throw of its all-time high at 1,708 with breakout potential to 1,750-1,765 on continued momentum.

Tech jumped 2.4% for the week while the small-caps surged 3.2%.

The S&P 500 rose 0.9% after trading to a high of 2,764 and clearing major resistance at 2,750. It was the first close above this level since June 22nd with additional hurdles at 2,775-2,780.

The Dow traded higher for the 5th time in 6 sessions after rising 0.4% while testing an intraday high of 24,520. The index still faces major resistance at 24,625 and a 50-day moving average that is showing signs of curling higher.

For the week, the S&P 500 was up 1.5% and the Dow added 0.8%.


ANALYST UPGRADES/DOWNGRADES

Biogen (BIIB) upgraded to Buy from Neutral at Citi
ManTech (MANT) upgraded to Buy from Hold at SunTrust
Starbucks (SBUX) upgraded to Hold from Sell at DZ Bank
Arbutus Biopharma (ABUS) downgraded to Neutral from Buy at B. Riley FBR
Carnival (CCL) downgraded to Hold from Buy at Argus
Gannett (GCI) downgraded to Underweight from Neutral at JPMorgan


EARNINGS

Monday's earnings reports (EST): 

Before the open: Helen of Troy (HELE)
After the close: No major announcements


UPCOMING ECONOMIC NEWS

Monday's economic reports (EST): 

​TD Ameritrade IMX - 12:30pm
Consumer Credit - 3:00pm


METALS / OIL

Gold closed at $1255.80 an ounce, down $3.00

Silver settled at $16.07 an ounce, down $0.03

Copper finished at $2.82 a pound, down $0.01

Crude Oil is at $73.00 barrel, down $1.14

Bitcoin Investment Trust (GBTC) ended at $10.23 up $0.18

Article of the Day

Be careful when you start to have more confidence as a trader, start to get in a rhythm with the markets, and get the rush of “beating” the market.  [read more]

   Make it a great day!

   Todd Mitchell

QUOTE OF THE DAY

Bulls Showing Breakout Potential

Click to Tweet

07-05-2018 Trade of the Day

Market Rallies on Fed Minutes/ Trade Talk

MARKET SUMMARY

U.S. markets showed strength throughout Thursday’s session following news that Germany and President Trump may find common ground to negotiate on tariffs. There was some volatility ahead of the Fed minutes as the major indexes gave up much of their early gains but still held positive territory.

The Fed minutes noted a number of favorable factors, including the strong labor market, stimulative fiscal policies accommodative financial conditions and high levels of confidence. This helped the market sustain its gains into the close as a mini trading range continues ahead of 2Q earnings.

The Dow gained 0.8% following the intraday push to 24,372. The index continues to struggle with its 200-day moving average although it did clear and hold this level for the first time in 8 sessions.

The S&P 500 soared 0.9% after testing a high of 2,737 and closing a point off its peak. The index has been in a lowered trading range for 8 sessions with a close above 2,750 being a bullish development. Continued closes below 2,700 would be a bearish signal.

The Nasdaq jumped 1.1% after trading to a high of 7,589. Continued closes above resistance at the 7,600 level would suggest additional strength and a breakout of the current trading range.

The Russell 2000 extended its win streak to 3-straight sessions after surging 1.2% while reaching an intraday peak north of 1,679 into the closing bell. Upper resistance at 1,670-1,675 held into the closing bell with a move above 1,685 signaling additional strength towards a retest of the 1,700 level and fresh all-time highs.


ANALYST UPGRADES/DOWNGRADES

Advanced Energy (AEIS) upgraded to Outperform from Market Perform at Raymond James
Fiat Chrysler (FCAU) upgraded to Buy from Hold at Jefferies
Qorvo (QRVO) upgraded to Overweight from Sector Weight at KeyBanc
Clean Energy (CLNE) downgraded to Underperform from Market Perform at Raymond James
Domino's Pizza Enterprises (DPZUF) downgraded to Sell from Neutral at Citi
Munich Re (MURGY) downgraded to Neutral from Overweight at JPMorgan


EARNINGS

Friday's earnings reports (EST): 

No major announcements

UPCOMING ECONOMIC NEWS

Thursday's economic reports (EST): 

Jobs Report - 8:30am
International Trade in Goods - 8:30am
Baker-Hughes Rig Count - 1:00pm

METALS / OIL

Gold closed at $1258.80 an ounce, up $5.30

Silver settled at $16.10 an ounce, up $0.06

Copper finished at $2.83 a pound, down $0.09

Crude Oil is at $73.00 barrel, down $1.14

Bitcoin Investment Trust (GBTC) ended at $10.05 up $0.04

Article of the Day

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

   Make it a great day!

   Todd Mitchell

QUOTE OF THE DAY

Market Rallies on Fed Minutes/ Trade Talk

Click to Tweet

07-03-2018 Trade of the Day

Market Stays Nervous Ahead of FOMC Minutes

MARKET SUMMARY

U.S. markets closed mostly lower on Tuesday, reversing earlier gains as Technology and Financials stocks struggled. Trading volume dropped following the morning highs, and as the news flow slowed, the major indexes drifted lower.

The small-caps showed strength but volatility remained slightly elevated with the market closed on Wednesday and ahead of Thursday’s FOMC minutes.

The Dow declined 0.5% after giving up a 137-point gain while testing a late day low of 24,150. The index closed below its 200-day moving average for the 6th-straight session.

The S&P 500 sank 0.5% after trading in a 25-point range and making a late day pullback to 2,711. Consecutive closes below 2,700 would be a very bearish development.

The Nasdaq made a run to 7,594 before giving back 0.9% on the fade to 7,498. A move below 7,450 and the 50-day moving average would be a bearish signal.

The Russell 2000 gained 0.3% after testing a high of 1,667 and holding positive territory throughout the shortened session. Near-term resistance is at 1,670-1,675 with a close above the latter being a continued bullish development.


ANALYST UPGRADES/DOWNGRADES

Albemarle (ALB) upgraded to Buy from Neutral at Goldman Sachs
Roku (ROKU) upgraded to Outperform from Perform at Oppenheimer
Veon (VEON) upgraded to Overweight from Neutral at JPMorgan
American Airlines (AAL) downgraded to Hold from Buy at Deutsche Bank
Belmond (BEL) downgraded to Underweight from Overweight at Barclays
Watsco (WSO) downgraded to Neutral from Outperform at Baird


EARNINGS

Wednesday's earnings reports (EST): 

Market Closed

UPCOMING ECONOMIC NEWS

Wednesday's economic reports (EST): 

​Market Closed


METALS / OIL

Gold closed at $1253.50 an ounce, up $11.80

Silver settled at $16.04 an ounce, up $0.20

Copper finished at $2.92 a pound, down $0.02

Crude Oil is at $74.14 barrel, up $0.10

Bitcoin Investment Trust (GBTC) ended at $10.01 down $0.19

Article of the Day

Options are the most versatile trading instrument ever invented. Since options cost less than stock, they provide a high leverage approach to trading that can significantly limit the overall risk of a trade or provide additional income.   [read more]

   Make it a great day!

   Todd Mitchell

QUOTE OF THE DAY

Market Stays Nervous Ahead of FOMC Minutes

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