Special Offer: Try the 'WeeklyTrader Membership' for ONLY $37!
CLICK HERE TO LEARN MORE
Markets are modestly trading today with the Dow on track to close in the red while the S&P and Nasdaq are recording slight gains. After an initial scare in China regarding a coronavirus outbreak, global concerns eased as Chinese officials restricted travel and began containing the coronavirus. Focus turns to earnings and the European Central Bank’s latest monetary policy update. Intel is due to report earnings after market close while Comcast, Procter&Gamble, American Airlines, and Southwest Airlines reported before the opening bell. Overseas, the ECB decided to hold rates at their current rates during their latest monetary policy meeting, which concluded today. We remain bullish during this earnings season but expect some additional pullbacks. SPY support and resistance levels remain near $320-$330 and we will continue to look for buying opportunities near $320. We do expect a 2-5% correction in the marker next 4-6 weeks as the market is losing momentum, especially within the technology sector. Market Commentary readers are encouraged to maintain clearly defined stop-levels for all positions. For reference, the SPY Seasonal Chart is shown below:
Markets held onto gains today after the recent dip caused by the viral outbreak in China. With the situation reportedly under control, investor focus turns to earnings and the latest economic reports. Also, impacting markets today is the latest European Central Bank monetary policy update which held rates steady. The ECB also reiterated its commitment to buy 20 billion euros worth of bonds per month. Globally, both European and Asian markets traded lower. Major U.S. indices S&P and Nasdaq recorded modest gains while the Dow remained slightly down.
Before the market open, several key 4Q corporate earnings were released including Comcast, Procter&Gamble, American Airlines, and Southwest Airlines. Comcast and P&G saw shares lower follower their earnings release while American Airlines shares were trading slightly higher. Tomorrow, HDFC Bank and American Express release their respective earnings while next week look out for Apple, Microsoft, Facebook, and several other notable reports to be released. Also next week, the first Federal Open Market Committee meeting of 2020 will be held.
Using the “^GSPC” symbol to analyze the S&P 500 our 10-day prediction window shows a near-term positive outlook. Today’s vector figure of +0.09% moves to +1.49% 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 January 10th, our ActiveTrader service produced a bullish recommendation for Apple Inc. (AAPL). 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
AAPL entered its forecasted Strategy B Entry 1 price range $309.63(± 1.05) in its third hour of trading that day and passed through its Target price of $312.73 in the second hour of trading the following trading. The Stop Loss price was set at $306.53.
*Please note: At the time of publication Vlad Karpel does have a position in the featured symbol, NVDA. 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 Nvidia Corp (NVDA). NVDA is showing a positive vector 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 $250.05 at the time of publication, with a +0.06% 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 $55.65 per barrel, down 1.90% from the open, at the time of publication.
Looking at USO, a crude oil tracker, our 10-day prediction model shows mixed signals. The fund is trading at $12.2 at the time of publication. Vector figures show 0.51% today, which turns to -1.05% 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 up 0.37% at $1,562.40 at the time of publication.
Using SPDR GOLD TRUST (GLD) as a tracker in our Stock Forecast Tool, the 10-day prediction window shows positive signals. The gold proxy is trading at $145.82, at the time of publication. Vector signals show +0.31% 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 down 2.21% at 1.52% at the time of publication.
The yield on the 30-year Treasury note is down 1.91% at 2.18% 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 +0.19% moves to -0.68% in four 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.
Volatility
The CBOE Volatility Index (^VIX) is $12.32 at the time of publication, and our 10-day prediction window shows positive 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!
