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Today, markets are trading higher off strong third-quarter earnings and growing optimism regarding U.S.-China negotiations following the latest comments from Chinese Vice Premier Liu He. With most companies that have already reported recording better-than-expected third-quarter results, earnings have continued to impress and support markets. This week will be headlines by Amazon, Intel, Comcast, and Microsoft, as well as reports from McDonald’s, Twitter, and Visa. Overseas, it appears as though the European Union will grant the U.K. and extension on their Brexit deadline following Prime Minister Boris Johnson’s request for a three-month extension. Although we believe the market is range-bound, further volatility can occur and we recommend readers maintain clearly defined stop levels for all positions. Currently, there is little evidence the market will retest its 200 days MA and we believe it is just a matter of time for the market to break through 52 weeks high. We will follow the semiconductor sector as we approach a strong seasonal trend for the market to make new highs and look to buy with the SPY near $294-$296 level; $302-$305 remains resistance overhead resistance for SPY. For reference, the SPY Seasonal Chart is shown below:
This week, global news continues to impact markets both in the U.S. and overseas with Brexit, Middle East tension, and U.S.-China negotiations as key factors. In the U.K., Prime Minister Boris Johnson officially asked for a Brexit deadline extension from the European Union. Originally set for October 31st, the U.K. will seek a three-month extension which should be granted as the latest comments from EU officials look to support the motion. In the Middle East, tension continues to pressure oil with increased volatility over the last month, pushing prices lower today. Following last week’s meeting in D.C., China and the U.S. look to continue negotiations in the coming months as the latest agreement was widely labeled as only “phase one,” further tariffs are still set to kick in before year’s end. Globally, both European and Asian markets closed higher.
Last week, marquee third-quarter corporate earnings included Netlfix, Citigroup, Chase, and additional major banks, most of which saw better than expected results and caused shares to rise. This week, look for Amazon, Visa, Intel, Comcast, 3M, Microsoft, McDonald’s, and Twitter. Haliburton reported earnings today which also topped expectations, causing shares to rise, while following the market close today look for TD Ameritrade to report; Procter & Gamble, Snap Inc, Texas Instruments, and UPS report tomorrow. Economic reports remain light this week with September existing home sales tomorrow, durable goods and manufacturing data on Thursday. Additional earnings of interest this week include Verizon, Capital One, T-Mobile, Raytheon, Tesla, Caterpillar, and Boeing.
Using the “^GSPC” symbol to analyze the S&P 500 our 10-day prediction window shows positive signals. Today’s vector figure of +0.03% moves to +2.84% 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, PNC. 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 (PNC). PNC 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 $145.56 at the time of publication, up 1.42% from the open with a +0.70% 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 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 $61.17 per barrel, down 3.10% 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 $11.16 at the time of publication, down 0.53% from the open. Vector figures show +0.11% today, which turns to +2.45% 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 down 0.48% at $1,486.90 at the time of publication.
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 $139.8, down 0.47% at the time of publication. Vector signals show -0.22% 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 up 2.45% at 1.80% at the time of publication. The yield on the 30-year Treasury note is up 1.66% at 2.29% 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 -0.46% moves to -0.29% 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 0.56% at $14.17 at the time of publication, and our 10-day prediction window shows negative signals. The predicted close for tomorrow is $12.64 with a vector of -11.13%. 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.
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