Bracing for another round of tropical storms and geopolitical stare-downs.

September 6, 2017

By Vlad Karpel

Wednesday trading is ticking up somewhat as market participants work though North Korean geopolitical uncertainty and another potentially devastating Hurricane. All major U.S indexes closed down on Tuesday after a recent North Korean nuclear weapons test and fresh threats of another intercontinental ballistic missile test within days. Hurricane Irma is currently passing through the Caribbean, heading towards Florida. Crude oil futures are up due to the storm and gold is seeing gains amidst the geopolitical tension and a dipping U.S dollar. Economic data is light this week, so we can expect to see attention focused primarily on North Korea’s threats, Hurricane Irma, and Washington’s inability to efficiently pass business-friendly agenda items.

The DJIA is currently up 0.40%, or 86.05 points, at 21,840.07. The S&P 500 is currently trading at 2,467.51- up 0.39% from the open. The Nasdaq-100 is up 0.37% at 6,399.13.

Using the ^GSPC symbol to analyze the S&P 500, our 10-day prediction window shows overall mixed signals. Today’s positive vector figure of +0.10% sees some negative corrections but stays in positive territory for the forecast. Today’s predicted support and resistance is 2,462.87 (± 3.77) and 2,472.32 (± 3.78), respectively. The predicted close today is 2,464.72. 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.

Highlight of a Recent Winning Trade

We’ve just closed a successful options spread trade for Boeing (BA) as part of our Expert Stock & Options Picks service!

Trade Breakdown

This trade was released on 7/31/17 and closed on 9/1/17, with a net gain for the options spread trade at $0.70 (18.42%). We recommended a sell for a SEP 2017 235 Call for $9.00, and a buy for a SEP 2017 230 Call for $12.80. The Max Gain was $1.20 and the Max Loss was $3.80.

Must-buy Stock for Thursday

Paypal (PYPL), a major payment systems operator, is generating strong bullish signals in our 10-day forecast as analyst expectations look toward potential acquisitions, creative corporate partnerships and a strong focus on mobile development.

Our 10-day prediction model shows consistent positive vector signals. The stock is currently trading at $61.32 with a +0.57% vector figure for today. Tomorrow’s prediction shows an open price of $62.23, a low of $61.39 and a high of $62.75. The predicted close for tomorrow is $62.08. Vector figures show +0.71% for tomorrow, which build above +2% in the latter half of the prediction window. 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.

Here’s where I put my money where my mouth is!

Click here for my daily recommendations & research tools!

Oil

Hurricane Irma is currently passing through the Caribbean, making its way toward Florida. The logistical disruptions and potential energy infrastructure damage from this storm has spiked crude oil prices for the time being. After Hurricane Harvey caused Gulf Coast refineries to go offline, refining operations are restarting which is increasing crude demand. West Texas Intermediate for October delivery is currently priced at $49.35 per barrel, up 1.07% from the open.

Looking at USO, a crude oil tracker, our 10-day prediction model shows strong negative signals. The fund is currently trading at $10.03, which is up 1.12% from the open. Today’s prediction sees support at $9.81 (± 0.04) and resistance at $9.99 (± 0.04). The predicted close for today is $9.93. Vector figures show -0.19% today which build above -2% within three 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 December gold is currently down 0.44% at $1,345.30 a troy ounce. Tensions with North Korea, expectations of a disastrous Hurricane Irma, and a weakened U.S dollar has spurred a short rally in the non-fiat metal. Although gains have not been significant today, prices have maintained around levels that may be the best seen in the year to date.

Using SPDR GOLD TRUST (GLD) as a tracker in our Stock Forecast Tool, the 10-day prediction window shows overall mixed signals. The gold proxy is currently trading at $126.58, down 0.69%. Today’s predicted low is $126.25 (± 0.30) and the predicted high is $127.78 (± 0.31). The predicted close today is $127.35. 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

Treasury bond yields are not seeing any significant changes today, following underwhelming economic data and sustained geopolitical uncertainty. Holders of government bonds are not seeing any immediate reason to sell while we await Hurricane Irma and a potential North Korean ballistic missile test in the coming days. The yield on the 10-year Treasury note is currently up 2.19% at 2.10%. Bond prices tend to move inversely to yields.

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 +0.05% turns negative within the next trading session and onward. The ETF is currently priced at $127.88- down 0.68% from the open. The predicted close today is $128.57 with a low and high of $127.13 (± 0.25) and $128.76 (± 0.26), 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.

Volatility

The CBOE Volatility Index (VIX) is currently down 3.76% at 11.77, and our 10-day prediction window shows negative signals. The predicted close today is 11.56 with a negative vector of -3.80%. Today’s predicted lows and highs are 10.02 (± 0.25) and 12.90 (± 0.32), 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.