All three major indices are trading lower today, continuing the trend of multi-day losses paired with strong earnings. The Dow looks for its sixth straight day in losses while the Nasdaq faces five. Strong earnings in these sectors in light of the way the market is moving means this is a traders’ market. Watch for major support and resistance levels marked by 200 and 50-day moving averages. Investors should continue watching how the market moves as more and more earnings are released and whether we hit any support or resistance numbers from my seasonal charts, signaling the stock is primed for trading.
In other news, we are looking forward to Facebook and Twitter earnings today, the former reporting after markets close along with Visa. Twitter saw its stock rise in premarket activity as news of the positive-profitable report made rounds. However, as the trading day went on the social media platform saw its shares drop almost 6%, this certainly did not help the slipping S&P. Boeing, also today, reported strong earnings that helped support the sliding Dow but not enough to cover for the day’s losses. Other strong earnings from this week include Comcast, jumping almost 3% since earnings and reports of their formal bid for Sky PLC came out, and Texas Instruments Inc., which rose 2% yesterday after earnings and looking at another 2% gain today. Yesterday, we saw 10-year yields climb over the psychological hurdle of 3%. This had some investors worried while others saw no difference between the 2.98% we saw on Monday and the 3% level we reached yesterday. Today, the yield climbed to 3.19% before settling on 3.04%.Speculation regarding the federal reserve more actively combating the expected rise in inflation has driven yields up but seeing as next week’s meeting won’t directly address this or necessarily look for another tax hike just yet, yields have settled. Still, investors should watch for more news in the days leading up to this Fed meeting that could lay the foreground for action in the next two meetings, taking place in June and September.
Things to watch for today and the rest of the week will include President Trump’s meeting with Apple CEO Tim Cook, more earnings including Ford and AT &T, and European and Asian markets that have also seen the majority of their stocks closer lower this week and how they will progress going forward.
Using the ^GSPC symbol to analyze the S&P 500, our 10-day prediction window shows mixed signals. Today’s vector figure of -.41% moves +.43% tomorrow before returning to negative territory in three trading sessions. Today’s predicted support and resistance levels are 2,616.73 (±10.00) and 2,695.38 (± 10.31), respectively. The predicted close today is 2,626.51. 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 April 23, our ActiveTrader service produced a bullish recommendation for Occidental Petroleum Corporation (OXY). ActiveTrader, included in all paid Tradespoon membership plans, is designed for intraday trading.
OXY opened near the Entry 1 price range of $76.47 (± 0.38) at $76.31, moving through its Target Price of $77.23 within the last hour of trading, reaching $77.65. The Stop Loss was set at $75.71.
Our featured stock for Thursday is Charles Schwab Corporation(SCHW). SCHW is showing a confident uptrend 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 figure reaching +1.00% in one trading session which then incrementally builds above +2.00% 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 $54.1 at the time of publication, down .72% from the open with a +0.01% vector figure.
Thursday’s prediction shows an open price of $56.21, a low of $54.06 and a high of $56.98.
The predicted close for Thursday is $55.58. Vector figures jump to +1.05% on Thursday 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.
When the market was down last week, see how we traded in volatile conditions and what you might expect in our next Live Trading Room. During recent volatility, we held Live Trading Room Session where our winning trades ranged 12% to over 50% ROI!
|Symbol||Net Gain %|
Our Live Trading Room is open every trading day from 9:15 am Eastern Time, but Live Trading Room Sessions are 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 very volatile markets.
West Texas Intermediate for June delivery (CLM8) is priced at $67.74 per barrel at the time of publication,up .06% from the open. June Brent reached $75 a barrel yesterday, a three year high for the commodity, before dropping to 73.50 today. Investors should watch closely for any news regarding Trump’s proposal to pull out of the Iran deal as it certainly will have implication on the commodity.
Looking at USO, a crude oil tracker, our 10-day prediction model shows mixed signals. The fund is trading at $13.60 at the time of publication, down .54% from the open. Today’s prediction sees support at $13.40 (± 0.06) and resistance at $13.91 (± 0.06). The predicted close for today is $13.45. Vector figures show -1.31% today, which stay negative for the next five trading sessions before reversing to positive territory. 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 June gold (GCM8) is down 0.73% at $1,323.60 at the time of publication. Both rising yields and a strong dollar have weekend the commodity that had been riding a multi-week high going into this week. With a good amount of traders factoring in that fourth tax hike, investors should keep an eye on future Fed meetings as they could indicate the potential strength of the commodity going forward.
Using SPDR GOLD TRUST (GLD) as a tracker in our Stock Forecast Tool, the 10-day prediction window shows mostly negative signals. The gold proxy is trading at $125.275, down .76% at the time of publication. Today’s predicted low is $125.81 (± 0.31) and the predicted high is $126.67 (± 0.31). The predicted close for tomorrow is $126.67. Vector signals show +0.18% for today, moving toward +1.00% the next two trading session before going into negative territory for the rest of the 10-day prediction. 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.
All yields are on the march higher today, responding to the expectation of a rise in inflation and the likelihood of four-not three- interest rate hikes. Investors should continue monitoring the shrinking gap between short and long-term treasury rates and its effects throughout the market. The yield on the 2-year Treasury note rose to 2.49%, about .47% from the open, at the time of publication. The yield on the 10-year Treasury note is up 0.60% at 3.01% at the time of publication. The yield on the 30-year Treasury note is up .74% from the open at 3.20% 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 +0.38% moves to -.49% within three trading sessions. The ETF is priced at $117.26 at the time of publication, up 0.58%. The predicted close tomorrow is $118.58 with a low and high of $117.70 and $119.04, 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 3.55% at 18.66 at the time of publication, and our 10-day prediction window shows overall negative signals. The predicted close for today is 18.51 with a vector of -0.69%. The predicted lows and highs for tomorrow are 17.54 (± .42) and 20.19 (± .44), 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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