Markets remain in the green today following a great start to the week that was backed by a positive outlook on China-U.S. relations and corporate earnings. With the G20 summit ahead, where President Trump and Chinese leader Xi will meet, proposed additional tariffs were put on hold. Both sides are looking to resume trade talks and find an agreement in the next few days. Economic data released today showed modest movement with unemployment rising slightly last week while GDP growth remained at 3.1% for the first quarter of 2019. Nike will release earnings after market close today while next week look for a lighter load of economic data during the shortened holiday week. U.S. Markets will be closed on Thursday for the Independence Day holiday. SPY has held steady this week at an all-time high level. Readers of Market Commentary are encouraged to avoid chasing the market near $296 and look to buy near $286. We expect volatility following the G20 summit this weekend as well as further clarification on tariff negotiations and global trade. Still, we do not see market momentum pushing SPY above $300 level this week. For reference, the SPY Seasonal Chart is shown below:
Major U.S. indices remain trending up behind growing optimism leading up to the G20 summit. With the latest round of trade talks, investors and traders alike will be looking for any clarification on future plans for negotiations as well as a possible agreement. Reports have stated President Xi is coming to the meeting with several trade terms to present President Trump with as well as a push to remove the ban on the sale of U.S. tech to Chinese-based Huawei Tech company. The G20 summit will feature other key geopolitical concerns being addressed such as the current conflict with Iran, to which President Trump is set to meet with Russian President Putin and Turkis President Erdogan. European markets closed the day to mixed results while Asian markets finished in the green.
Yesterday, Rite Aid reported earnings that topped expectations significantly and are currently seeing solid gains off that, up 18%. Look for Nike earnings today after market close. Reporting before the opening bell, Walgreens also saw earnings top expectations which rose shares 4%. Conagra Brands released earnings before market open today and saw shares lower over 10% behind poor earnings and sales data. Next week’s load of earnings and economic data remains light during the shortened trading week with Thursday off for the Fourth of July holiday. Tomorrow, Personal Income, Consumer Spending, and COre inflation data for the month of May will release.
Using the “^GSPC” symbol to analyze the S&P 500, our 10-day prediction window shows positive signals. Today’s vector figure of -0.06% moves to +0.21% in five trading sessions. Prediction data is uploaded after the market close at 6 pm, CST. Today’s data is based on market signals from the previous trading session.
On June 5th, our ActiveTrader service produced a bullish recommendation for Under Armour Inc (UAA). ActiveTrader is included in all paid Tradespoon membership plans and is designed for day trading.
UAA entered its forecasted Strategy B Entry 1 price range $24.70 (± 0.16) in its first hour of trading and passed through its Target price $24.95 in the second hour of trading that day. The Stop Loss price was set at $24.45.
*Please note: At the time of publication we do not own the featured symbol, SLB. 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 Thursday is Schlumberger LTD (SLB). SLB is showing a confident vector trend in our Stock Forecast Toolbox’s 10-day forecast. This stock is assigned a Model Grade of (C) indicating it ranks in the top 50th percentile for accuracy for predicted support and resistance, relative to our entire data universe.
The stock is trading at $39.29 at the time of publication, up 1.00% from the open with a +0.94% vector figure.
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 the next trading session relative to the average of actual prices for the 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.
West Texas Intermediate for Crude Oil delivery (CL.1) is priced at $59.22 per barrel, down 0.27% from the open, at the time of publication.
Looking at USO, a crude oil tracker, our 10-day prediction model shows positive signals. The fund is trading at $12.33 at the time of publication. Vector figures show +1.88% today, which turns +7.34% in five 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 the Gold Continuous Contract (GC00) is down 0.35% at $1,410.40 at the time of publication.
Using SPDR GOLD TRUST (GLD) as a tracker in our Stock Forecast Tool, the 10-day prediction window shows mostly positive signals. The gold proxy is trading at $132.67, at the time of publication. Vector signals show +0.89% for today. 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 yield on the 10-year Treasury note is down 1.89% at 2.01% at the time of publication. The yield on the 30-year Treasury note is down 1.86% at 2.52% 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 positive signals in our 10-day prediction window. Today’s vector of -0.05% moves to +0.21% in three 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 CBOE Volatility Index (^VIX) is down 2.34% at $15.83 at the time of publication, and our 10-day prediction window shows negative signals. The predicted close for tomorrow is $15.26 with a vector of -5.17%. 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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