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Major U.S. indices are on track to close in the green for the sixth straight day as Friday’s “Phase One” U.S.-China deal continues to support markets. Impeachment proceedings in D.C. have yet to impact markets while strong economic data, such as yesterday’s housing data, is helping markets reach record highs. Today, General Mills reported earnings before the market open to see shares slightly rise while yesterday’s poor FedEx earnings continue to weigh on shares, currently down 10%. After the market closes Micron Technology is due to report earnings; additional housing data and Nike earnings will release tomorrow. SPY short-term support currently sits at $315 with overhead resistance at $320. We will look to buy when the SPY is near $307 level and we expect additional volatility. We encourage Market Commentary readers to maintain clearly defined stop levels for all positions. For reference, the SPY Seasonal Chart is shown below:
Following last Friday’s U.S.-China “Phase One” agreement, markets both in the U.S. and globally have seen steady gains. Today, both Asian and European markets closed to mixed results while the Dow, Nasdaq, and S&P remain on track to close in the green for the sixth straight trading session. While there is little news or development on further trade deals or tariffs, the latest agreement and aversion of the December 15th tariff hikes have sufficiently supported markets to record highs. The latest impeachment proceedings have yet to impact markets while overseas, the U.K. election was able to provide further clarity on Brexit ahead of the January 31st deadline. Yesterday’s FedEx earnings returned far weaker than expected causing shares to lower over 10% today. Micron Tech is due to report after market close with Nike earnings scheduled for tomorrow. Other key economic reports include tomorrow’s November existing home sales, weekly jobless claims, and Friday’s Q3 GDP revision.
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 -0.10% moves to +1.00% 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 not have a position in the featured symbol, AMAT. 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 Applied Materials (AMAT). AMAT is showing a neutral 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 current-day predicted support and resistance, relative to our entire data universe.
The stock is trading at $60.61 at the time of publication, down 0.30% from the open with a +1.28% 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 $60.89 per barrel, down 0.08% from the open, at the time of publication.
Looking at USO, a crude oil tracker, our 10-day prediction model shows mostly positive signals. The fund is trading at $12.74 at the time of publication. Vector figures show +0.07% today, which turns +1.10% 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 0.08% at $1,479.40 at the time of publication.
Using SPDR GOLD TRUST (GLD) as a tracker in our Stock Forecast Tool, the 10-day prediction window shows mixed signals. The gold proxy is trading at $139.02, at the time of publication. Vector signals show +0.15% 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 2.00% at 1.92% at the time of publication.
The yield on the 30-year Treasury note is up 1.72% at 2.35% 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 overall negative signals in our 10-day prediction window. Today’s vector of -0.24% moves to -0.71% 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 up 2.36% at $12.58 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.
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