Markets Rally Around Positive U.S.-China Progress

June 26, 2019
By Vlad Karpel

Major U.S. indices are up today behind positive earnings and global trade news. Micron stock is riding nice gains following their positive earnings beat which topped expectations for the quarter. Treasury Secretary Steven Mnuchin expressed positive progress in his latest statement regarding China-U.S. trade discussion, stating a U.S.-China trade deal was “about 90%” done before talks broke down. Also worth noting, Mnuchin addressed tariffs which could be suspended for the next round on $300 billion of Chinese imports while talks continue. Look for General Mills and Rite Aid earnings today, Nike and Walgreens tomorrow. With SPY remaining at an all-time high, we encourage our readers to look to buy near $286. We expect the market to continue trading between $286 and $296. Still, we do not see market momentum pushing SPY above $300 level. For reference, the SPY Seasonal Chart is shown below:

Markets are in the green today off positive global-trade progress recently reported. The proposed pause on tariffs as well as the improvement in U.S.-China relations has pushed U.S. futures and major indices higher. Treasury Secretary Mnuchin’s has recently told reporters a deal with China is close to completion. Similarly, the progress on this deal has stalled both nations intentions to add further tariffs against each other. This, coupled with the upcoming meeting between presidents in the G20 summit, should help ease global tensions and continue supporting markets in the days to come. However, if talks break down or a deal is not reached, look for both nations to move forward with their proposed tariffs. 

Yesterday, Micron chipmaker released earnings that topped expectations and helped support the stock as well as sector-related companies into nice gains. Micron is currently up 13% while the semiconductor sector is up 3%. Also released yesterday FedEx earnings beat expectations and saw slight gains. General Mills released earnings before market open today but saw poor sales which lowered shares by 4%. Looking ahead, Nike and Walgreens are due to release earnings tomorrow while Constellation Brands is set for a Friday release. Tomorrow, look for Q1 GDP revisions, weekly jobless claims, and pending home sales index for the month of May.

Using the “^GSPC” symbol to analyze the S&P 500, our 10-day prediction window shows positive signals. Today’s vector figure of -0.03% moves to +1.51% in five trading sessions. The predicted close for tomorrow is 2,939.32. 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.  


 From the desk of Vlad Karpel,

 Founder and Chief Investment Officer, Tradespoon…

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Highlight of a Recent Winning Trade

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.

Trade Breakdown

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.


Thursday Morning Featured Symbol

*Please note: At the time of publication we do not own the featured symbol, ORCL. 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 Oracle Corporation (ORCL). ORCL 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 predicted support and resistance, relative to our entire data universe.  

The stock is trading at $56.73 at the time of publication, up 1.00% from the open with a +0.05% 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.


Oil

West Texas Intermediate for Crude Oil delivery (CL.1) is priced at $59.23 per barrel, up 2.42% 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 $12.29 at the time of publication, up 2.00% from the open. Vector figures show +1.55% today, which turns +9.36% 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. 

Gold

The price for the Gold Continuous Contract (GC00) is down 0.39% at $1,413.00 at the time of publication.

Using SPDR GOLD TRUST (GLD) as a tracker in our Stock Forecast Tool, the 10-day prediction window shows positive signals. The gold proxy is trading at $133.11, down 1.00% at the time of publication. Vector signals show +0.53% 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.  

Treasuries

The yield on the 10-year Treasury note is up 3.11% at 2.05% at the time of publication. The yield on the 30-year Treasury note is up 1.85% at 2.57% 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 -0.01% moves to +0.33% 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. 

Volatility

The CBOE Volatility Index (^VIX) is up 1.17% at $16.47 at the time of publication, and our 10-day prediction window shows negative signals. The predicted close for tomorrow is $15.43 with a vector of -3.45%. 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.


 From the desk of Vlad Karpel,

 Founder and Chief Investment Officer, Tradespoon…

Join Me & My Run of

1,275% Gains!

  • Execute the same exact trades I’m making in my own account, as I make them throughout the day.

  • Or, catch my early moves… go play a round of golf, (or whatever)… and then check back for the afternoon’s best-of-the-day action.

  • I expect seven winners from every ten trades I make.

  • Try duplicating my trades for 30 days RISK-FREE.  Keep going only if you’re beating the pants off your old record.

  • See how simple, quick and easy this service makes it to harness the self-learning (AI) power of the most advanced set of algorithms out there.   

Click Here To Learn More


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