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U.S. stocks traded higher today as all three major indices look to get on the same page and record gains for the day after trending in opposite directions the last few trading sessions. With tech and financial sector leading the way, the Dow looks to capitalize on nearly 1.00% gains, while the S&P and Nasdaq are not far behind. The market continues to be overbought so investors should monitor support and resistance levels in my Seasonal Charts in order to sell into the rallies at optimal positions.
Tensions from the recent White House announcement of steel and aluminum tariffs, which throttled markets in late May, eased as it was reported that Trump is considering pardoning Canada from the original pack of countries the tariffs were aimed for. In China, tensions also seem to ease, as early morning reports of Chinese intentions to buy $70 billion worth of U.S. goods in order to ease off those same steel and aluminum tariffs, and in turn playing ball with the Trump administration. The fact that tariffs have led to negotiations and not a trade war should be promising for investors. If the back and forth remains constructive this could bode well for global markets, but further tariffs could spiral out into a trade war. Investors should look for more news on the matter on Saturday when trade talks are set to take place between the U.S., Canada, Mexico, and a few other major players.
Elsewhere, Tesla looks to record decent gains for the day while Facebook and Netflix have not held up as well. Recent news that the social media giant shared info with four Chinese tech companies have alarmed investors, and most in general, as this opens an unknown amount of users to state-sponsored spying. This issue rings similar to the Cambridge Analytica issue Facebook had faced earlier in the year and investors should continue monitoring such developments.
Finally, the U.S. trade deficit shrank by 2% in April which was recorded before Trump’s steel and aluminum tariffs but still indicates a growing economy. This is bittersweet news as the gap reached a seventh-month low but is also on pace in 2018 for a multi-year high.
Using the ^GSPC symbol to analyze the S&P 500, our 10-day prediction window shows all positive signals. Today’s vector figure of +0.02% moves to 1.03% in three trading sessions, before climbing further into positive territory. Today’s predicted support and resistance levels are 2,751.48 (±5.14) and 2,757.73 (± 5.15), respectively. The predicted close for tomorrow is 2,760.60. Prediction data is uploaded after market close at 6 p.m., CST. Today’s data is based on market signals from the previous trading session.
On June 6th, our ActiveTrader service produced a bullish recommendation for Ford Motor Company(F). ActiveTrader, included in all paid Tradespoon membership plans, is designed for intraday trading.
Trade Breakdown
F opened near Entry 1 price range of $11.72 (± 0.06), moved through its Target Price of $11.84 in its second hour of trading, reaching a high of $11.90. The Stop Loss was set at $11.60.
Our featured stock for Thursday is Ford Motor Company (F). F is showing a confident uptrend in our Stock Forecast Toolbox’s 10-day forecast. This stock is assigned a Model Grade of (A)– indicating it ranks in the top 10th percentile for accuracy for predicted support and resistance, relative to our entire data universe. Our 10-day prediction model shows positive vector figure reaching +1.15% in six trading sessions which then incrementally builds throughout the 10-day forecast. Our benchmark for vector figures is +1.00%.
*Please note: Our featured stock is part of your free subscription service. It is not included in any paid Tradespoon subscription service. Vlad Karpel only trades his own personal money in paid subscription services. If you are a paid subscriber, please review your Premium Member Picks, ActiveTrader or ActiveInvestor recommendations. If you are interested in receiving Vlad’s personal picks, please click here.
The stock is trading at $11.985 at the time of publication, up 1.31% from the open with a +0.24% vector figure.
Thursday’s prediction shows an open price of $11.74, a low of $11.66 and a high of $11.83
The predicted close for Thursday is $11.79. Vector figures stay positive and drive upward from there. This is a good signal for trading opportunities because we use vectors as a primary factor in determining price movements for stocks and ETF.
Prediction data is uploaded after market close at 6 p.m., CST. Today’s data is based on market signals from the previous trading session.
Note: The Vector column calculates the change of the Forecasted Average Price for next trading session relative to the average of actual prices for last trading session. The column shows expected average price movement “Up or Down”, in percent. Trend traders should trade along the predicted direction of the Vector. The higher the value of the Vector the higher its momentum.
An unexpected rise in crude supplies has oil trading at a two-month low. Prices traded higher earlier today as it was reported Venezuela may not be able to deliver some of its crude oil after their political turmoil, however the rise in supplies countered this and lowered prices. West Texas Intermediate for July delivery (CLN8) is priced at $64.68 per barrel, down 1.27% from the open, at the time of publication.
Looking at USO, a crude oil tracker, our 10-day prediction model shows all negative signals. The fund is trading at $13.12 at the time of publication, down 0.76% from the open. Tomorrow’s prediction sees support at $12.46 and resistance at $13.94. The predicted close for tomorrow is $12.79. Vector figures show -0.80% today, which turns -4.71% in two trading sessions. Prediction data is uploaded after market close at 6 p.m., CST. Today’s data is based on market signals from the previous trading session.
The price for August gold (GCQ8) is up 0.10% at $1,303.70 at the time of publication. As trade tensions lower the dollar, gold moves up. Investors should watch for June 12th release of the U.S. Federal Reserve monetary policy statement for more direction on the commodity.
Using SPDR GOLD TRUST (GLD) as a tracker in our Stock Forecast Tool, the 10-day prediction window shows all positive signals. The gold proxy is trading at $122.76, down .07% at the time of publication. Tomorrow’s predicted low is $123.09 and the predicted high is $124.03. The predicted close for tomorrow is $123.28. Vector signals show 0.21% for today, reaching 1.29% in three trading sessions. Prediction data is uploaded after market close at 6 p.m., CST. Today’s data is based on market signals from the previous trading session.
With the trade deficit reported down in April and the recently more constructive nature of trade talks to prevent a full-on trade war, yields look to climb on Wednesday. The yield on the 10-year Treasury note is up 1.82% at 2.97% at the time of publication. The yield on the 30-year Treasury note is up 1.34% from the open at 3.13%.
Using the iShares 20+ Year Treasury Bond ETF (TLT) as a proxy for bond prices in our Stock Forecast Tool, we see mostly positive signals in our 10-day prediction window. Today’s vector of 0.09% moves to 1.03% in three trading sessions. The ETF is priced at $118.639 at the time of publication, down 0.89%. The predicted close tomorrow is $120.25 with a low and high of $119.60 and $121.03, respectively. Prediction data is uploaded after market close at 6 p.m., CST. Today’s data is based on market signals from the previous trading session.
The CBOE Volatility Index (^VIX) is down 4.76% at 11.81 at the time of publication, and our 10-day prediction window shows all negative signals. The predicted close for tomorrow is 10.82 with a vector of -9.95%. The predicted lows and highs for tomorrow are 9.84 and 11.77, respectively. Prediction data is uploaded after market close at 6 p.m., CST. Today’s data is based on market signals from the previous trading session.
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