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Major U.S. indices are all down today after the Dow flirted with early morning gains before reverting back into negative territory. At its current state, investors should avoid chasing the market but continue looking for good opportunities to buy into the dips. With volatility lingering, major support is at $270 while resistance is at $282. For reference, SPY Seasonal Chart is shown below:
News to note today include the final stretch of meaningful earnings and the recent Brexit agreement. U.K. Prime Minister May and European Union leaders agreed on a provisional deal for finalizing the U.K.’s exit from the EU. Several issues still remain to be sorted out including Irish involvement and ensuring British economic stability in the years after the deal. These details will be ironed out in the days to come as this draft text will be reviewed thoroughly before any further action is taken. Elsewhere, oil has begun a slight rebound after falling to yearly lows but is still extremely low compared to last month. Globally, both European and Asian markets declined today.
Several economic reports are still scheduled for release this week. Jobless claims, retail sales, import price reports are due on Thursday, while Friday we’ll see industrial production and capacity utilization reports. Fed Chairman Powell will speak today at the Dallas Federal Reserve and should provide good insight on the current state of the economy. Yesterday, the U.S. October budget deficit was released, rising to $100.5 billion, an almost 60% increase from last October. Earnings today include Cisco after hours while Macy’s and Canopy already reported. Macy’s beat expectations while Canopy missed expectations but both shares suffered today. Two companies receiving some negative attention today include Snap Inc. and Juul. The e-cig company which has considerably risen in prominence in the last year has halted social media campaigns and flavored e-cig flavors after repeated pressure from the USDA. Snap Inc., the parent company to Snapchat, Spectacles, Bitmoji, and Zenly, is currently under DOJ and SEC investigation after reports began to circulate investors were misled in IPO disclosures last year. Both situations are ongoing.
Using the “^GSPC” symbol to analyze the S&P 500, our 10-day prediction window shows positive signals. Today’s vector figure of +0.17% moves to +3.72% in five trading sessions. The predicted close for tomorrow is 2,764.94. 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.
On November 7th, our ActiveTrader service produced a bullish recommendation for Starbucks Corp. (SBUX). ActiveTrader is included in all Tradespoon membership plans and is designed for intraday trading.
Trade Breakdown
SBUX entered the forecasted Entry 1 price range of $66.01 (± 0.66) in its first hour of trading and hit its Target price of $66.67 that hour, reaching a high of $68.14 for the trading day. The Stop Loss was set at $65.35.
The recording of our event has been posted!
Our featured stock for Thursday is Rockwell Automation, Inc. (ROK). ROK is showing a confident vector trend in our Stock Forecast Toolbox’s 10-day forecast. This stock is assigned a Model Grade of (A) indicating it ranks in the top 10th percentile for accuracy for predicted support and resistance, relative to our entire data universe.
*Please note: Our featured stock 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 ActiveInvestor recommendations. If you are interested in receiving Vlad’s personal picks, please click here.
The stock is trading at $166.06 at the time of publication, down 0.53% from the open with a +0.51% 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 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 December delivery (CLZ8) is priced at $56.39 per barrel, up 1.35% from the open, at the time of publication. Looking at USO, a crude oil tracker, our 10-day prediction model shows negative signals. The fund is trading at $11.91 at the time of publication, up 1.88% from the open. Vector figures show -1.77% today, which turns -5.23% 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 December gold (GCZ8) is up 1.08% at $1,214.40 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 negative signals. The gold proxy is trading at $114.9, up 1.06% at the time of publication. Vector signals show -0.22% 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 0.93% at 3.11% at the time of publication. The yield on the 30-year Treasury note is down 0.29% at 3.35% 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 negative signals in our 10-day prediction window. Today’s vector of -0.23% moves to -0.83% 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 up 11.69% at $22.36 at the time of publication, and our 10-day prediction window shows negative signals. The predicted close for tomorrow is $19.14 with a vector of -5.54%. 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 recording of our event has been posted!
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