Special Offer: Try the 'ShadowTrader Membership' for ONLY $37!
CLICK HERE TO LEARN MORE
U.S.-China “Phase One” deal progress continues to dictate markets, both domestically and globally, as continued discussions by both parties have raised optimism for a signed partial deal. Other factors impacting markets today include the latest released economic data as well as OPEC developments, following their summit in Vienna. Tomorrow, look out for December Consumer Sentiment Index, October Consumer Credit data and Wholesale Inventories. Next week, the final FOMC meeting of 2019 will take place, with the Fed decision announced on Wednesday, while other key reports to be released include November Federal Budget and Core CPI. SPY short-term overhead resistance is currently near $315-$317 level and we do not see technical data supporting this level being broken in the next two weeks. Furthermore, there is little evidence SPY will retest its 200 days MA. We will look to buy when the SPY is near $303 level. Continued volatility is expected, as well as shallow pullbacks, and we encourage Market Commentary readers to maintain clearly defined stop levels for all positions. For reference, the SPY Seasonal Chart is shown below:
Continued communication between the U.S. and China has signaled optimism for markets ahead of the upcoming December 15th tariff hikes which could be rolled back if a deal were to be signed, or in progress at the very least. Still, little is known yet but the conversation and negotiation appear to be ongoing. Trade deficit data for October showed a significant drop, hitting a 16-month low, but still on track to post annual highs with the ongoing trade and tariff situation. Factory orders in October rose while unemployment applications fell slightly last; tomorrow November employment data will release. Next week, key economic data released will include Q3 Productivity, November Core CPI, Federal Budget, and Retail Sales. On Tuesday, December 10th, the final Federal Open Market Committee meeting of 2019 will take place. Fed Chair Jerome Powell will meet with the press following the two-day meeting to discuss any policy updates. The last three FOMC meetings saw rate cuts.
Using the “^GSPC” symbol to analyze the S&P 500 our 10-day prediction window shows a near-term mixed outlook. Today’s vector figure of +0.51% moves to -0.97% in four trading sessions. Prediction data is uploaded after the market closes at 6 p.m. CST. Today’s data is based on market signals from the previous trading session.
On December 3rd, our ActiveTrader service produced a bullish recommendation for Pepsico Inc (PEP). ActiveTrader is included in all paid Tradespoon membership plans and is designed for day trading, with signals meant to last for 1-2 days.
Trade Breakdown
PEP entered its forecasted Strategy B Entry 1 price range $135.88 (± 0.32) in its first hour of trading and passed through its Target price of $137.24 in the second hour of trading the following trading day in the final hour of trading. The Stop Loss price was set at $117.74.
*Please note: At the time of publication Vlad Karpel does have a position in the featured symbol, GOOGL. Our featured symbol 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 MonthlyTrader recommendations. If you are interested in receiving Vlad’s personal picks, please click here.
Our featured symbol for Friday is Electronic Arts Inc (EA). EA is showing a confident vector trend 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 current-day predicted support and resistance, relative to our entire data universe.
The stock is trading at $101.7 at the time of publication, up 1.06% from the open with a -0.24% vector figure.
Prediction data is uploaded after the 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 the next trading session relative to the average of actual prices for the last trading session. The column shows the 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.
West Texas Intermediate for Crude Oil delivery (CL.1) is priced at $58.50 per barrel, up 4.28% from the open, at the time of publication.
Looking at USO, a crude oil tracker, our 10-day prediction model shows a near-term negative trend. The fund is trading at $12.22 at the time of publication, up 3.91% from the open. Vector figures show +0.29% today, which turns -1.24% in three trading sessions. Prediction data is uploaded after the market close at 6 p.m., CST. Today’s data is based on market signals from the previous trading session.
The price for the Gold Continuous Contract (GC00) is down 0.32% at $1,479.70 at the time of publication.
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 $138.79, down 0.23% at the time of publication. Vector signals show +0.05% for today. Prediction data is uploaded after the market close at 6 p.m., CST. Today’s data is based on market signals from the previous trading session.
The yield on the 10-year Treasury note is up 3.75% at 1.78% at the time of publication.
The yield on the 30-year Treasury note is up 2.56% at 2.23% 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 mixed signals in our 10-day prediction window. Today’s vector of +0.48% moves to -0.46% in three sessions. Prediction data is uploaded after the 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 at $14.53 at the time of publication, and our 10-day prediction window shows negative signals. Prediction data is uploaded after the market close at 6 p.m., CST. Today’s data is based on market signals from the previous trading session.
Please share this Tradespoon Market Commentary with your friends.
Comments Off on
Tradespoon Tools make finding winning trades in minute as easy as 1-2-3.
Our simple 3 step approach has resulted in an average return of almost 20% per trade!
