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U.S stocks rallied today with the Dow and S&P reaching record highs behind the easier tariffs recently levied from both U.S. and China. Earlier this week, President Trump stated that the U.S. will move forward with more tariffs on another $267 billion worth of Chinese products, this time at only 10%, with China retaliated with another set of tariffs ranging from 5%-10% on $60 billion worth of U.S. goods that will take into effect Monday, September 24th. The lower percentage duties produced some optimism in investors as the previous tariff-escalation signaled some selloffs this year. Concern for a full-blown trade war remains but markets seem to be taking the tariff escalation in stride, continuing to march forward behind economic reports and strong earnings reports rather than being held back by trade war fears. SPY Seasonal Chart forecast is shown below:
The Dow hit an all-time high in early morning trading as all but two of its 30 companies were in the green, with Boeing and Caterpillar Inc. making some of the biggest gains. S&P advanced in all but two of its eleven sectors. Nasdaq is also recording some nice gains behind a strong tech sector. Asian stocks also rose, once again showing how both U.S. and Chinese markets are moving in tandem during the tariff back and forth. Until proven otherwise, this pattern looks to remain which could also be a point of optimism in the recent rally as a resolution is, seemingly, in the best interest of both sides. Another outcome, as projected recently by soon-to-be former-CEO of the Alibaba Group Jack Ma is that the trade war could be a long-standing one, in the range of twenty-plus years. This, of course, is a far less optimistic outlook and one worth monitoring as more developments unfold. For now, investors will continue to look towards economic reports to drive market trends. The recently released labor report saw a nice drop in jobless claims which continues to shrink in 2018. Look for more reports and, of course, the FOMC meeting next week to direct markets.
Some notable market-movers today include Micron Tech which rose in early morning trading in anticipation of an after-market earnings report, as well as Tilray that continues its wild run, yesterday up some 50% while today the symbol is down almost 20%, gaining almost 600% just this month. This kind of volatility, according to analysts, will likely continue for the time being as weed stocks slowly integrate into the market.
Elsewhere, Trump had some strong words for the OPEC as oil prices neared $80 per barrel. Oil lowered slightly thereafter but prices have been on the rise since Trump decided to pull out of the Tehran nuclear accord and renew Iran sanctions, curbing Iran’s exports. With an OPEC meeting on the horizon, Trump’s tweets seem to be sending a clear message to OPEC-members:
Using the “^GSPC” symbol to analyze the S&P 500, our 10-day prediction window shows mixed signals. Today’s vector figure of +0.08% moves to -0.16% in five trading sessions. The predicted close for tomorrow is 2,901.78. 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 September 14th, our ActiveTrader service produced a bullish recommendation for Colgate Palmolive Co (CL). ActiveTrader included in all Tradespoon membership plans and is designed for intraday trading.
Trade Breakdown
CL entered the forecasted Entry 1 price range of $67.59 (± 0.21) in its first hour of trading and moved through its Target price of $68.27 the following trading session in its first hour of trading. The Stop Loss was set at $66.91.
See how we traded in volatile conditions and what you might expect in our next Live Trading Room. During recent volatility, we held Live Trading Room Session, on September 18th, where we had some great trades below!
| Symbol | Net Gain% |
| PFE(OPTION) | 31.71% |
| D | -22.83% |
| D | 39.22% |
| BAC(OPTION) | 28.57% |
| CVS | 57.53% |
| CSV(OPTION) | 45.45% |
| GD | 44.04% |
Our Live Trading Room is open every trading day from 9:15 am Eastern Time for the first hour of trading, but these Live Trading Sessions are only available for Premium Members.
We wanted to share the recording with you so you can see the profits you might be missing- even during volatile markets.
Today only, we are going to do something we RARELY do!
We are offering LIFETIME ACCESS to our Tools Membership!
This means that you will get Lifetime Access to our entire suite of trading tools, and after your initial payment, you will never be billed again for as long as you remain a member!
Our featured stock for Friday is HP Inc (HPQ). HPQ is showing a confident vector trend in our Stock Forecast Toolbox’s 10-day forecast. This stock is assigned a Model Grade of (B) indicating it ranks in the top 25th 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 $25.77 at the time of publication, up 2.02% from the open with a +0.48% 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 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.
Oil
West Texas Intermediate for October delivery (CLV8) is priced at $70.78 per barrel, down 0.46% from the open, at the time of publication. Oil futures lowered after Trump’s tweet towards OPEC, instructing “OPEC monopoly must get prices down now!” Look for details to emerge following the September 23rd OPEC-members and allies meeting.
Looking at USO, a crude oil tracker, our 10-day prediction model mostly all negative signals. The fund is trading at $14.81 at the time of publication, down 0.87% from the open. Vector figures show -0.06% today, which turns -1.00% in two 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.
Gold
The price for December gold (GCZ8) is up 1.7% at $1,210.00 at the time of publication. This would mark the eighth straight session the safe-haven commodity finished above the $1,200 line. The dollar, on the other hand, is down 0.62% at $93.96, capping off a mostly down week for the currency.
Using SPDR GOLD TRUST (GLD) as a tracker in our Stock Forecast Tool, the 10-day prediction window shows mixed signals. The gold proxy is trading at $114.16, up 0.25% at the time of publication. Vector signals show -0.20% 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.
Treasuries
The yield on the 10-year Treasury note is up 0.24% at 3.08% at the time of publication. The yield on the 30-year Treasury note is up 0.01% at 3.21% at the time of publication. Yields continue their march up this week as bonds are feeling pressure from the tension back and forth between U.S. and Chian.
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 -0.05% moves to -1.11% 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.
Volatility
The CBOE Volatility Index (^VIX) is down 1.45% at $11.58 at the time of publication, and our 10-day prediction window shows all positive signals. The predicted close for tomorrow is $12.29 with a vector of +3.23%. 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.
Today only, we are going to do something we RARELY do!
We are offering LIFETIME ACCESS to our Tools Membership!
This means that you will get Lifetime Access to our entire suite of trading tools, and after your initial payment, you will never be billed again for as long as you remain a member!
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