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Markets are extending last week’s significant gains with a focus on this week’s meeting between U.S. President Trump and Chinese President Xi, as well as monitoring escalating tensions in Iran. The Group of 20 summit kicks off this weekend in Osaka, Japan, where recent global trade tensions will likely be discussed. Oil prices continue to rise following the second incident in Iran which sparked the U.S. President to propose new sanctions. Other news to monitor includes the recent Caesars Entertainment buyout as well as the Bitcoin and Gold rallies. Earnings are light this week and major names include FedEx, Micron, General Mills, Nike, and Walgreens. The SPY continues to trade at an all-time high and we expect the market to remain between $286-$296. We encourage our readers to avoid chasing near $296 and look to buy near $286. However, we do not see market momentum carrying SPY above $300 level. For reference, the SPY Seasonal Chart is shown below:
All three major U.S. indices were in the green in early morning trading following a solid week for U.S. markets which saw the SPY reach record highs. Currently, Dow nears record highs while the Nasdaq has eased off its gains and remains flat. This week’s G20 summit will feature the first face to face meeting between Trump and Xi in months, giving investors some confidence a trade agreement could be laid out in the days that follow. The other major geopolitical concern in focus remains the rising tensions in Iran. Last week, two separate incidents brought attention to the area and now it has been reported President Trump is looking for further sanctions to impose. Oil futures and global benchmark continued to alternate between gains and losses. Globally, Asian markets in the green while European markets finished with mixed results.
Gold futures remain in the green following continued global turmoil while Bitcoin has also seen a decent rally recently, currently trading above $10,000. Goldman Sachs Group is seeing nice gains after their announced plans to disrupt banking with their new startup consumer bank Marcus. This, coupled with Boeing shares rising, helped the Dow close in on its record high. Elsewhere, Eldorado Resorts recently agreed to buy Caesar Entertainment for $8.7 billion. The deal is set to value Caesars at $13 a share and has the stock up 13% today. Eldorado Resorts is currently down 10%. Major earnings to monitor this week include Lennar, FedEx, Micron, General Mills, Rite Aid, Walgreens, Nike, and Constellation Brands.
Using the “^GSPC” symbol to analyze the S&P 500, our 10-day prediction window shows positive signals. Today’s vector figure of +0.07% moves to +2.35% in five trading sessions. The predicted close for tomorrow is 2,975.04. Prediction data is uploaded after the market close at 6 pm, CST. Today’s data is based on market signals from the previous trading session.
On June 5th, our ActiveTrader service produced a bullish recommendation for Under Armour Inc (UAA). ActiveTrader is included in all paid Tradespoon membership plans and is designed for day trading.
Trade Breakdown
UAA entered its forecasted Strategy B Entry 1 price range $24.70 (± 0.16) in its first hour of trading and passed through its Target price $24.95 in the second hour of trading that day. The Stop Loss price was set at $24.45.
*Please note: At the time of publication we do own the featured symbol, WMT. 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 Tuesday is Walmart Inc (WMT). WMT 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.
The stock is trading at $111.23 at the time of publication, with a +0.11% 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 the 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 Crude Oil delivery (CL.1) is priced at $57.37 per barrel, down 0.09% from the open, at the time of publication.
Looking at USO, a crude oil tracker, our 10-day prediction model shows positive signals. The fund is trading at $11.93 at the time of publication. Vector figures show +0.75% today, which turns +7.63% 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 the Gold Continuous Contract (GC00) is up 1.36% at $1,419.20 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 $133.48, up 1.00% at the time of publication. Vector signals show +0.24% 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 1.55% at 2.03% at the time of publication. The yield on the 30-year Treasury note is down 1.15% at 2.56% 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 positive signals in our 10-day prediction window. Today’s vector of +0.04% moves to +0.70% 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 down 0.06% at $15.39 at the time of publication, and our 10-day prediction window shows mixed signals. The predicted close for tomorrow is $16.10 with a vector of +4.91%. 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.
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