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Markets are trading higher ahead of this week’s two-day Federal Open Market Committee meeting, where rates are expected to be cut, and today’s third-quarter earnings from Google parent company Alphabet Inc, due after market close. Fed Chair Powell will meet with the press on Wednesday and discuss the latest policy update. Also supporting markets today are strong results from AT&T, Walgreens, and Spotify, all seeing shares rise off better-than-expected results. Tomorrow look for earnings from MasterCard, BP, and General Motors, while Wednesday will feature Apple and Facebook reports. With the market range-bound, overhead resistance near $302-$305 level, we will continue to follow the semiconductor sector as we approach a strong seasonal trend. We will look to buy near $294-$296 level for the SPY as there is little evidence the market will retest its 200 days MA. The market could certainly break through 52 weeks high and, with further volatility expected, we recommend readers maintain clearly defined stop levels for all positions. For reference, the SPY Seasonal Chart is shown below:
All three major U.S. indices are on track to close in the green with an early load of positive earning reports released before market open today, with still several big-name reports due today. AT&T, Walgreens, and Spotify released before market open to see shares rise off good reports. Also released today, HSBC and Resturant Brands saw shares lower; tomorrow look for MasterCard, Pfizer, BP, General Motors, Shopify, and Allstate Company. Today’s biggest report will come out after the market close with Google parent company Alphabet Inc. releasing their third-quarter data. Other key reports to follow this week include September core inflation and consumer spending on Thursday, October unemployment data on Friday.
Tomorrow, the second to last FOMC meeting of 2019 will take place with major speculation that there will be another interest rate cut. Fed Chair Powell will meet with the press following the conclusion of the meeting as per usual and indication on Fed sentiment going into 2020 will be key. Recent China-U.S. tariffs, impeachment concerns, and global tension have surely affected markets but whether or not this will factor into the Fed decision will be interesting. Other key developments include the European Union granting the U.K. on their Brexit deal, extending the deadline to January 31st, as well as continued to Middle East tension causing oil to lower today. Globally, both Asian and European markets closed in the green.
Using the “^GSPC” symbol to analyze the S&P 500 our 10-day prediction window shows positive signals. Today’s vector figure of +0.27% moves to +0.43% in five 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 October 10th, our ActiveTrader service produced a bullish recommendation for Wal-Mart Stores (WMT). ActiveTrader is included in all paid Tradespoon membership plans and is designed for day trading.
Trade Breakdown
WMT entered its forecasted Strategy B Entry 1 price range $118.93 (± 0.36) in its first hour of trading and passed through its Target price of $120.12 in the second hour of trading the following trading day. The Stop Loss price was set at $117.74.
*Please note: At the time of publication we do not own the featured symbol, LRCX. 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 Lam Research Corp (LRCX). LRCX 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 $280.30 at the time of publication, up 3.81% from the open with a +0.86% 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 $55.86 per barrel, down 1.41% 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 $11.65 at the time of publication, down 1.52% from the open. Vector figures show -0.15% today, which turns +2.48% in five 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 down 0.66% at $1,495.40 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 $140.69, down 0.82% at the time of publication. Vector signals show -0.37% 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 2.90% at 1.85% at the time of publication. The yield on the 30-year Treasury note is up 2.28% at 2.34% 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 -0.25% moves to +0.61% in three 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 CBOE Volatility Index (^VIX) is up 2.45% at $12.96 at the time of publication, and our 10-day prediction window shows mixed signals. The predicted close for tomorrow is $13.42 with a vector of +3.75%. 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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