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Equities markets are seeing recoveries today, although trading is still choppy following Monday’s sell-off. Tuesday’s trading was erratic to say the least, with the Dow ranging 1,000 points up and down, ending 567 points up from the open. We’re likely to see continued volatility as market participants adjust to a new norm. Some analysts point to these new levels as a much needed correction.
At the time of publication, the DJIA is up 0.98%, or 241.19 points, at 25,162.45. The S&P 500 is at 2,715.56- up 0.75% from the open. The Nasdaq-100 is up 0.38% at 7,143.35.
Using the ^GSPC symbol to analyze the S&P 500, our 10-day prediction window shows continued negative signals. Today’s negative vector figure of -1.28% moves to -4.10% within three trading sessions. Today’s predicted support and resistance is 2,615.04 (± 7.37) and 2,704.77 (± 7.62), respectively. The predicted close today is 2,625.57. 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.
Highlight of a Recent Winning Trade
On February 6, our ActiveTrader service produced a bullish recommendation for Estee Lauder Companies, Inc. (EL). ActiveTrader is included in all paid Tradespoon membership plans and is designed for intraday trading.
Trade Breakdown
EL moved through the Entry 1 price range $133.43 (± 0.49) and moved to hit its Target price of $134.76 within the first hour of trading.
While the market is down 2.0%, see how we trade the current market and what to expect next in our Live Trading Room highlights. Today, Feb. 5, we held a Live Trading Room Session where our winning trades ranged 16.60% to to over 61% ROI!
| Symbol | Action | Open | Close | Entry | Exit | Stop Loss |
| CAT (option) | BUY | 2/5/18 | 2/5/18 | $9.00 | $9.90 | $6.50 |
| CAT (option) | BUY | 2/5/18 | 2/5/18 | $7.80 | $8.60 | $6.50 |
| ORCL (option) | BUY | 2/5/18 | 2/5/18 | $1.86 | $2.10 | $1.30 |
| SPY (option) | SELL | 2/5/18 | 2/5/18 | $1.15 | $0.76 | $3.50 |
| LBTYK | BUY | 2/5/18 | 2/5/18 | $36.69 | $36.62 | $36.02 |
Our Live Trading Room is open every trading day from 9:15 am Eastern Time, but these Live Trading Sessions are only available for Premium Members to attend Live.
We wanted to share the recording with you so you can see what you are missing.
Buy, Buy, Buy: Stock Signals for Thursday
Our featured stock for Thursday is Ingersoll-Rand (IR). IR is showing signals for an immediate upswing 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. Our 10-day prediction model shows vector figures moving past +2.00% within the next three trading sessions. Our benchmark for vector figures is +1.00%.
*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 $93.26 at the time of publication, up 1.65% from the open with a +2.22% vector figure.
Thursday’s prediction shows an open price of $91.60, a low of $91.30 and a high of $94.70.
The predicted close for Thursday is $91.93. Vector figures rise to +2.48% for Thursday, holding strong positive vectors throughout the forecast. This is a good signal for trading opportunities, because we use vectors as a primary factor in determining price movements for stocks and ETF.
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 next trading session relatively to 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 predicted direction of the Vector. The higher the value of the Vector the higher its momentum.
Oil
Crude prices are being sent lower again as the EIA reports continued supply climbs in U.S. inventories. Crude supplies rose by 1.9 million barrels last week, which was under forecasts but above a reported decline from the American Petroleum Institute. West Texas Intermediate for March delivery (CLH8) is priced at $61.99 per barrel at the time of publication, down 2.22% from the open.
Looking at USO, a crude oil tracker, our 10-day prediction model shows overall negative signals. The fund is trading at $12.46 at the time of publication, down 1.89% from the open. Today’s prediction sees support at $12.55 (± 0.04) and resistance at $12.85 (± 0.04). The predicted close for today is $12.59. Vector figures show -0.50% today, which reverses to a positive trend for three trading sessions before turning down to -1.14% on Feb. 13. 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 April gold (GCJ8) is down 0.40% at $1,324.30 at the time of publication. A strengthening U.S. dollar and stabilized treasury yields are putting downward pressure on the yellow metal. Typically, investors will move to gold in times of high volatility and uncertainty, but most are selling gold in order to shore up cash and raise liquidity.
Using SPDR GOLD TRUST (GLD) as a tracker in our Stock Forecast Tool, the 10-day prediction window shows overall negative signals. The gold proxy is trading at $125.26, down 0.10% at the time of publication. Today’s predicted low is $125.06 (± 0.21) and the predicted high is $126.61 (± 0.21). The predicted close today was $125.27. Vector signals show -0.27% for today, moving to +0.25% in the next three 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.
Treasuries
Treasury yields have been finding stability today after a spike in volatility and a massive equities selloff. Fluctuations are largely due to investor concerns about the pace of Fed interest rate hikes as economic data points to possible inflation signals. Other factors include incoming debt issuance spikes and an overall tighter monetary policy shift from the fed. This would impact the fixed value of government bonds, stoking selling activity which in turn would boost yields. The yield on the 10-year Treasury note is up 0.14% at 2.79% 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 -0.11% moves to -0.39% in four trading sessions after two days of positive vectors. The ETF is priced at $119.57 at the time of publication, down 0.33%. The predicted close today was $120.55 with a low and high of $119.27 (± 0.24) and $120.66 (± 0.24), respectively. 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 22.98% at 23.09 at the time of publication after a massive spike in previous sessions, and our 10-day prediction window shows a strong positive conviction. The predicted close is 31.60 with a positive vector of +2.87%. The predicted lows and highs are 23.09 (± 0.68) and 32.58 (± 0.95), respectively. 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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