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Major U.S. indices set new intraday highs as markets continue to maintain gains following last week’s U.S.-China agreement. Over in D.C., the House of Representatives have elected to impeach President Trump, sending the decision for impeachment over to the Senate, and for the most part not affecting markets. The next vote on impeachment will take place in January; also early next year, U.S. and Chinese trade representatives are planning to meet to discuss additional phases of the trade deal. November Core Inflation, Consumer Spending, and Personal Income reports are due tomorrow along with Q3 GDP Revision. With SPY short-term support currently at $315 and overhead resistance at $320, we will look to buy when the SPY is near $307 level. Additional volatility is expected and we encourage Market Commentary readers to maintain clearly defined stop levels for all positions. For reference, the SPY Seasonal Chart is shown below:
Yesterday, the Dow and S&P snapped their multi-day streak by closing lower though all three major U.S. indices are on track to close in the green today. With last week’s “Phase One” trade deal agreement between U.S. and China supporting markets, the next round of negotiations in early January become instrumental. Additional details are still to come from this partial deal as well as plans for further negotiations. Also occurring next month, the next step in the impeachment inquiry will make its way to the Republican-majority Senate where a vote will be held. For the most part, impeachment proceedings have not impacted markets. Over in the U.K., the latest election provided Brexit clarity as they prepare for their latest Brexit deadline: January 31st. Globally, both Asian and European markets closed to mixed results. Tomorrow’s GDP revisions for Q3 will headline economic reports while the triple header of November data (Consumer Spending, Personal Income, and Core Inflation) will also influence markets. Next week, look out for November New Home Sales and Durable Goods data during the shortened trade week.
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 +0.10% moves to +1.29% 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 December 3rd, our ActiveTrader service produced a bullish recommendation for Pepsico Inc (PEP). 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
PEP entered its forecasted Strategy B Entry 1 price range $135.88 (± 0.32) in its first hour of trading and passed through its Target price of $137.24 in the second hour of trading the following trading day in the final hour of trading. The Stop Loss price was set at $117.74.
*Please note: At the time of publication Vlad Karpel does not have a position in the featured symbol, CVS. 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 Friday is CVS Corp (CVS). CVS is showing a neutral 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 current-day predicted support and resistance, relative to our entire data universe.
The stock is trading at $73.85 at the time of publication, up 0.78% from the open with a +0.43% 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 $61.30 per barrel, up 0.61% from the open, at the time of publication.
Looking at USO, a crude oil tracker, our 10-day prediction model shows mostly positive signals. The fund is trading at $12.8 at the time of publication. Vector figures show +0.40% today, which turns +1.65% 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 0.36% at $1,484.00 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 positive signals. The gold proxy is trading at $139.4, at the time of publication. Vector signals show -0.19% 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 down 0.55% at 1.91% at the time of publication.
The yield on the 30-year Treasury note is down 0.22% 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 overall negative signals in our 10-day prediction window. Today’s vector of -0.27% moves to -0.69% 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 down 0.24% at $12.55 at the time of publication, and our 10-day prediction window shows negative 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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