Following some slight trepidations over inflation and rising prices last month, the U.S. stock-market indexes and futures continued to trade higher on Monday. A broad rally of the S&P 500 saw 10 out of 11 primary sectors rise on Monday. Group standouts were the telecommunications sector, rising .8%, and consumer-discretionary stock, up .7%, while the industrial sector was the lone sector in the negative, down .1%. The rally was likely fueled by last Friday’s release of February market-labor report that saw employment rise. The labor report showed an impressive gain of 313,000 jobs during the month, however, wage growth was reported below expectations. Some analysts view this period of positive earnings growth, rising stocks, and jobs growth as an optimal time for investing while others fear that this can lead to assets being overvalued and therefore higher inflation. While the jobs report did ease some investors worry about inflation, concerns over a weak dollar leading to a faster rise in rates from the Feds have formed. Two more key indicators of inflation will be released this week as an update on consumer prices is due Tuesday along with a retail sales report scheduled for Wednesday.
At the time of publication, the DJIA is down .44%, or 112.37 points, at 25,380.39. The S&P 500 is at 2,791.39 – down 0.05% from the open. The Nasdaq-100 is up 0.36% at 7,589.08.
Using the ^GSPC symbol to analyze the S&P 500, our 10-day prediction window shows overall mixed signals. Today’s vector figure of 0.30% moves to +1.31% within seven trading sessions, holding positive from there on. Today’s predicted support and resistance levels are 2,737.99 (±13.74) and 2,794.72 (± 14.02), respectively. The predicted close today is 2,792.03. 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 March 7, our ActiveTrader service produced a bullish recommendation for Range Resources Corporation (RRC). ActiveTrader, included in all paid Tradespoon membership plans, is designed for intraday trading.
RRC opened below the Entry 1 price range of $15.11 (± 0.15), opening at 14.99 In the first hour of trading, RRC surpassed the Entry 1 price range. In the second hour of trading, RRC hit an intraday high at $15.35, passing through its Target price of $15.26. The Stop Loss was set at $14.96.
Our featured stock for Thursday is the 3M Company (MMM). MMM is showing short-term positive signals in our Stock Forecast Toolbox’s 10-day forecast. This stock is assigned a Model Grade of (B)– indicating it ranks in the top 25th percentile for accuracy for predicted support and resistance, relative to our entire data universe. Our 10-day prediction model shows positive vector figures gaining above +1.00% in the next two trading sessions. 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 $240.55 at the time of publication, down 0.33% from the open with a +0.54% vector figure.
Tuesday’s prediction shows an open price of $243.63, a low of $238.99 and a high of $243.91.
The predicted close for Tuesday is $240.81. Vector figures rise to +1.09% on Tuesday, holding positive for several trading sessions before turning down. 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 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.
Live Trading Room Update
See how we make money in the current market and what to expect next in our limited time Live Trading Room highlights. Our winning 5-for-5 trades this morning, March 12 ranged from 1.64% to 45% ROI!
Our Live Trading Room is open every trading day from 9:15 am Eastern Time and is only available for Premium Members.
We wanted to share the recording with you so you can see the profits you might be missing- even during volatile markets.
Last week’s price gains on oil future were erased on Monday as a rise in U.S. output is expected. An increase of 86,000 barrels a day in crude U.S. output was reported by the Energy Information Administration on Friday, for the week ending on March 2. This follows February’s average weekly increase of 91,000 barrels a day that also greatly exceeds 2017 pace of production growth. Later in the day, the EIA will release its oil production forecast for the month of April from seven major shale regions. West Texas Intermediate for April delivery (CLJ8) is priced at $60.97 per barrel at the time of publication, down 1.56% from the open.
Looking at USO, a crude oil tracker, our 10-day prediction model shows mixed signals. The fund is trading at $12.31 at the time of publication, down 1.28% from the open. Today’s prediction sees support at $12.29 (± 0.08) and resistance at $12.75 (± 0.08). The predicted close for today is $12.68. Vector figures show +1.39% today, which move to +2.11% the following trading session. 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 April gold (GCJ8) is down 0.42% at $1,318.40 at the time of publication. Today, gold slipped due faster U.S. interest-rate hikes lingered past last Friday’s positive jobs report. While the hiked interest rates benefit the dollar, gold could see negative results. Look for Tuesday’s U.S. CPI report to provide some indication of the size and rate of the possible inflation.
Using SPDR GOLD TRUST (GLD) as a tracker in our Stock Forecast Tool, the 10-day prediction window shows mixed signals. The gold proxy is trading at $125.01, down 0.42% at the time of publication. Today’s predicted low is $124.86 (± 0.33) and the predicted high is $125.87 (± 0.33). The predicted close today is $125.44. Vector signals show 0.15% for today, holding positive for two sessions before turning negative for three straight session. The rest of the day 10-day prediction shows positive signals. 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.
As two batches of government debt auctions are set to take place, treasury yields hold their ground today. These include a $28 billion sale of 3-year notes as well as a $21 billion sale of 10-year notes. Investors, unsure of what to make of February’s jobs report, are watching for other possible inflation indicators, along with ongoing tariff concerns, to make sense of the current state of the economy. Tuesday’s CPI report should provide more data on the matter. The yield on the 10-year Treasury note is down .38% at 2.88% at the time of publication. The 30-year is down 0.5% at 3.14%.
Using the iShares 20+ Year Treasury Bond ETF (TLT) as a proxy for bond prices in our Stock Forecast Tool, we see solid positive signals in our 10-day prediction window. Today’s vector of +0.22% moves to +0.93% in four trading sessions. The ETF is priced at $118.255 at the time of publication, up 0.29%. The predicted close today is $118.62 with a low and high of $117.49 (± 0.25) and $118.75 (± 0.25), 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 up 10.04% at 16.11 at the time of publication, and our 10-day prediction window shows all negative signals. The predicted close for today is 15.22 with a vector of -0.11%. The predicted lows and highs are 15.06 (± 1.00) and 15.75 (± 1.05), 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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