Markets struggle for direction amidst energy sector concerns and geopolitical worries.

Technology shares are recovering from recent pullbacks, and broader index movements were mostly flat without any sharp swings in either direction. There were slides in the energy sector due to slipping oil prices and uncertainty around details of the OPEC deal.

The investigation into Russian meddling in the U.S. election had produced two more potential events that may impact markets. There are reports that further charges may be made against Trump aides and campaign officials, as well as a possible subpoena of records from Deutsche Bank in connection to the investigation. The latter, which has yet to be completely verified, would indicate a crossing of a ‘red line’ that President Trump had set in regards to his finances. Depending on the reaction from the White House, these events may hinder future legislative efforts such as an infrastructure bill or further deregulation.  

At the time of publication, the DJIA is down 0.11%, or 26.60 points, at 24,154. The S&P 500 is trading at 2,628- down 0.07% from the open. The Nasdaq-100 is up 0.04% at 6,764.

Using the ^GSPC symbol to analyze the S&P 500, our 10-day prediction window shows  steady positive signals. Today’s positive vector figure of +0.13% moves to +0.81% within three trading sessions and rises from there.  Today’s predicted support and resistance is 2,629.57 (± 3.93) and 2,661.15 (± 3.97), respectively. The predicted close today is 2,639.16. 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.  

Highlight of a Recent Winning Trade

On December 4, we closed out a long option trade in our Live Trading Room– which is exclusive to our Premium Membership plan- for Walt Disney Co. (DIS). Our Live Trading Room sessions run each market day from 8:15 to 9:15 CST.

Trade Breakdown

This trade was opened and closed on 12/4. Our trading team entered at $2.40 and exited the position at $3.00– a Net Gain of $0.60.  Our Stop Price was set at $1.20, allowing for a Risk of $1.20.

Must-buy Stock for Thursday

Our must-buy stock for Thursday is Omnicom Group Inc.  (OMC). This stock is showing strong positive vector signals 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 relative to our entire data universe. Our 10-day prediction model shows vector figures climbing above +2.50% within the next trading session. Our benchmark for vector figures is +1.00%.

The stock is trading at $74.69 at the time of publication, down 0.82% from the open with a +0.80% vector figure.

Thursday’s prediction shows an open price of $75.86, a low of $75.80 and a high of $78.98.

The predicted close for Thursday is $78.92. Vector figures show +2.72% for tomorrow, rising throughout the forecast.  This is a good signal for trading opportunities, because the vectors are 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 relatively to 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 predicted direction of the Vector. The higher the value of the Vector the higher its momentum.

Oil

Crude prices are taking a dive today as fresh data reveals a jump in U.S. gasoline inventories- the spike was more than twice than what was forecasted. The S&P Global Platts survey showed a forecasted rise of 2.7 million barrels for the week, but the real rise was 6.8 million barrels.  We’ll also be expecting the typical tug and pull dynamic between OPEC production cut efforts and steady U.S. crude output.  

West Texas Intermediate for January delivery is priced at $56.28 per barrel at the time of publication, down 2.36% from the open.  

Looking at USO, a crude oil tracker, our 10-day prediction model shows overall positive signals. The fund is trading at $11.28 at the time of publication, down 2.25% from the open. Today’s prediction sees support at $11.44 (± 0.05) and resistance at $11.61 (± 0.05). The predicted close for today is $11.58. Vector figures show +0.25% today, moving to -0.04% 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.   

Gold

The price for February gold is up 0.11% at $1,266.40 a troy ounce at the time of publication. Amidsts recoveries in equities, there are still several geopolitical worries that may have impacts on market movements in the near future. There is no telling how the situation in Israeli/Palestinian relations will progress after President Trump’s announcement today of Jerusalem as Israel’s capital and new home to the U.S. embassy. This story will undoubtedly span the rest of the Middle East and see a broader ripple effect in coming days. A hold up in Brexit negotiations is also top of mind for investors, as U.K. and E.U. officials were unable to move talks to a second phase on Monday.  

Using SPDR GOLD TRUST (GLD) as a tracker in our Stock Forecast Tool, the 10-day prediction window shows growing negative signals. The gold proxy is trading at $120.01, down 0.26% at the time of publication. Today’s predicted low is $119.25 (± 0.21) and the predicted high is $120.32 (± 0.21). The predicted close today is $120.20. 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.   

Treasuries

Yields are slipping today as investors watch major U.S. indices stagger in continuing a rally. Treasury bonds are seen as a safe-haven asset, and as bond prices rise- yields decrease. Q3 data for unit labor costs added to this trend- showing that tighter labor markets do not necessarily spell out higher inflation. The yield on the 10-year Treasury note is down 1.47% at 2.33% at the time of publication.

Using the iShares 20+ Year Treasury Bond ETF (TLT) as a proxy for bond prices in our Stock Forecast Tool, we see all negative signals in our 10-day prediction window. Today’s vector of -0.04% moves to -0.86% in three trading sessions. The ETF is priced at $128.01 at the time of publication, up 0.61%. The predicted close today is $127.01 with a low and high of $125.97 (± 0.20) and $127.24 (± 0.20), 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.

Volatility

The CBOE Volatility Index (VIX) is down 1.15% to 11.20 at the time of publication, and our 10-day prediction window shows overall negative movement.  The predicted close today is 11.34 with a negative vector of -0.45%, which moves to +1.27% in three trading sessions before reverting back to a negative trend. Today’s predicted lows and highs are 10.62 (± 0.23) and 12.01 (± 0.26), 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.