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Markets traded higher today behind strong earnings and cooling fears over the Chinese coronavirus. Chinese officials reported heightened measures to counter the spread of the virus which eased global concerns and returned financial-focus to earnings season. Johnson & Johnson, Abbott Laboratories, and Fifth Third Bank reported earnings before the market open today while Texas Instruments is due to report after the close. Yesterday, key 4Q corporate earnings from Netflix, IBM, Capital One, and United Airlines were released. During this earnings season, we remain bullish in the short-term but expect additional pullbacks. Currently, SPY support and resistance remain near $320-$330 level 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 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:
After yesterday’s dip, which stopped several multi-day streaks, U.S. stocks rebounded today reaching intraday highs as the S&P and Nasdaq closed in the green. China’s latest viral scare was caused by the coronavirus, which has since been confirmed by Chinese officials to be under containment. This cooled global worry of further disruption and returned focus to the latest earnings season. Yesterday, key earnings from IBM and Netflix guided markets while today Johnson & Johnson, Abbott Laboratories, and Fifth Third Bank lead big-name earnings releases. Boeing continues to weigh on the Dow while IBM is still up following its earnings release, currently up 3%. Netflix showed positive global growth but saw shares slightly dip today. Existing Home Sales data for the month of December was also released to decent growth and solid reception. Tomorrow, look for Intel, Procter & Gamble, and Comcast earnings.
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 +0.26% moves to +1.67% 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, ADSK. 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 Autodesk Inc (ADSK). ADSK is showing a positive vector 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 current-day predicted support and resistance, relative to our entire data universe.
The stock is trading at $195.84 at the time of publication, with a +0.14% 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 $56.60 per barrel, down 3.03% 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 0.06% at $1,558.80 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 up 1.54% at 1.85% at the time of publication.
The yield on the 30-year Treasury note is up 1.10% at 2.30% 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.
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