Investors see slight Wednesday pullbacks to correct an overbought market.

U.S markets are trading lower today as investors see a correction after a series of rallies and record-setting. Apple Inc. (AAPL) saw its shares slide today following a much-anticipated product lineup reveal on Tuesday, along with news of a delay in the launch date for the iPhone X. Stocks tend to rise on rumours and slide on the subsequent news release.  Crude oil prices are seeing gains today as OPEC announced it would begin including more non-member countries to its global production cut agreement.

The DJIA is currently down 0.06%, or 13.92 points, at 22,132. The S&P 500 is currently trading at 2,496- down 0.03% from the open. The Nasdaq-100 is down 0.01% at 6,454.

Using the ^GSPC symbol to analyze the S&P 500, our 10-day prediction window shows  overall negative signals. Today’s negative vector figure of -0.02% moves past -1.1% in the middle of the forecast before easing again.  Today’s predicted support and resistance is 2,485.86 (± 3.84) and 2,496.48 (± 3.86), respectively. The predicted close today is 2,494.58. 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

On September 12, our ActiveTrader Stock service recommended a successful trade for AbbVie Inc. (ABBV).

Trade Breakdown

Our Entry 1 price was set at $87.00 (± 0.44) and the Entry 2 price at $86.57 (± 0.44). The stock passed through the entry ranges at the outset of market open and continued to hit and surpass our Target Gain price of $87.87 within the first hour of trading! Our Stop-loss was set at $86.13.   

Must-buy Stock for Thursday

U.S.-based pharmaceutical giant Bristol-Myers Squibb Company (BMY) is showing strong positive signals in our Stock Forecast Toolbox’s 10-day forecast, following reports of two recent successful phase III studies.  Our 10-day prediction model shows positive vector signals building above +3% early in the forecast.

The stock is currently trading at $62.68, down 0.54% from the open with a +1.30% vector figure for today.

Thursday’s prediction shows an open price of $63.77, a low of $63.73 and a high of $65.57.

The predicted close for Thursday is $65.50. Vector figures show +3.03% for Tuesday and continue to climb higher at the end of the forecast.

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 figures calculate the change of the Forecasted Average Price relative to “today’s” actual price. The figure shows expected average price movement “Up or Down”, in percent. Trend traders should trade along predicted direction of the Vector. The higher the value of the Vector the higher its momentum.

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Oil

An announcement from the Organization of Petroleum Exporting Countries is indicating more non-member countries will be invited to join the cartel’s global production cut agreement and market participants are reacting. U.S. data released recently has also shown a tightening of the crude oil market.  West Texas Intermediate for October delivery is currently priced at $49.26 per barrel, up 2.16% from the open.  

Looking at USO, a crude oil tracker, our 10-day prediction model shows consitent positive movement. The fund is currently trading at $10.04, which is up 1.77% from the open. Today’s prediction sees support at $9.87 (± 0.03) and resistance at $10.03 (± 0.04). The predicted close for today is $9.89. Vector figures show +0.69% today and climbs to +1.23% in the following trading session. 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 0.38% at $1,326.40 a troy ounce. After avoiding a proposed North Korean missile test and no immediate dangerous reaction to additional U.N. sanctions, geopolitical tensions have eased. A strengthening U.S. dollar index is also lending to pressure on the non-fiat metal. Gold tends to move inversely to the U.S. dollar, as a stronger dollar makes investment with foreign currencies less attractive.

Using SPDR GOLD TRUST (GLD) as a tracker in our Stock Forecast Tool, the 10-day prediction window shows overall positive signals. The gold proxy is currently trading at $125.80, down 0.60%. Today’s predicted low is $126.56 (± 0.29) and the predicted high is $128.39 (± 0.30). The predicted close today is $127.93. 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

Market participants are pulling investment out of government bonds as risk-appetite is up, pushing yields a bit higher today and investors are looking toward more data to give clues about the state of inflation. The yield on the 10-year Treasury note is currently up 0.74% at 2.18%. 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 mixed signals in our 10-day prediction window. Today’s vector of -0.15% fluctuates throughout the forecast, indicating short-term volatility. The ETF is currently priced at $126.56- down 0.18% from the open. The predicted close today is $126.91 with a low and high of $126.06 (± 0.25) and $126.94 (± 0.25), 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 0.57% at 10.52, and our 10-day prediction window shows overall positive signals. The predicted close today is 11.13 with a positive vector of +1.35%. Today’s predicted lows and highs are 10.31 (± 0.26) and 11.21 (± 0.29), 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.

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

Click here for my daily recommendations & research tools!