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The two week stock market recovery- led by a tech sector rally today- continues as worries of inflation remain. All three major indices saw significant advances for the second week in a row, closing with substantial gains of 1% last Friday. Concerns regarding raised interest rates as a reaction to possible forthcoming inflation have cast a shadow of doubt on the sustainability of strong post-market rallies. Tuesday will see Fed Chairman Jerome Powell going to Congress to discuss the 2018 interest-rate hikes to discern if the Fed will go with three or four. Investors will be focused on upcoming commentary from Fed officials to gauge the pace of interest rate hikes and opinions on inflation. Some market analysts believe markets have adjusted to better deal with the reality of inflation with less fear and volatility. In other news, new-home sales reports released today for January were under projections, causing homebuilder share to slide.
At the time of publication, the DJIA is up 1.33%, or 337.22 points, at 25,647.21. The S&P 500 is at 2,772.35- up 0.91% from the open. The Nasdaq-100 is up 1.10% at 6,972.05.
Using the ^GSPC symbol to analyze the S&P 500, our 10-day prediction window shows overall positive signals. Today’s vector figure of 0.49% moves to +1.55% within one trading session. Today’s predicted support and resistance levels are 2,751.47 (±13.53) and 2,809.53 (± 13.82), respectively. The predicted close today is 2,774.85. 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 23, our ActiveTrader service produced a bullish recommendation for Red Hat, Inc. (RHT). ActiveTrader is included in all paid Tradespoon membership plans and is designed for intraday trading.
Trade Breakdown
RHT opened within Entry 1 price range of $144.66 (± 0.84) in the first hour of trading, proceeding to hit its Target price of $146.11 within the next five hours of trading. Before closing, RHT reached a high of $146.63. The Stop Loss was set at $143.21.
Our featured stock for Tuesday is Amazon, Inc. (AMZN). AMZN is showing solid bullish signals 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 reaching +1.00% and rising throughout the forecast within four trading days. 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 $1515.41 at the time of publication, up 1.03% from the open with a +0.94% vector figure.
Tuesday’s prediction shows an open price of $1492.08, a low of $1491.03 and a high of $1506.61.
The predicted close for Tuesday is $1504.79. Vector figures rise to +1.32% in four trading sessions and build 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.
Special Urgent Trading Invitation:
The next 30 days are the “sweet spot”
of this volatile market.
Don’t miss this opportunity to pick through the wreckage for the earnings reports the market overlooked.
URGENT: REGISTRATION EXPECTED TO FILL UP FAST!
Oil
Oil prices continue to rise due to lower U.S. production and stalled production at a Libyan oil production facility. Crude oil storage, as reported by U.S. Energy Information Administration, fell by 1.6 million barrels last week. Likewise, OPEC-member countries withheld 1.8 million barrels a day following the inception of global production cut agreement at the end of 2016. West Texas Intermediate for April delivery (CLJ8) is priced at $64.04 per barrel at the time of publication, up 0.79% from the open.
Looking at USO, a crude oil tracker, our 10-day prediction model shows overall negative signals. The fund is trading at $12.89 at the time of publication, up 0.94% from the open. Today’s prediction sees support at $12.67 (± 0.06) and resistance at $12.94 (± 0.06). The predicted close for today is $12.91. Vector figures show 0.38% today, which move to -0.02% in one trading session. 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 February gold (GCG8) is up 0.25% at $1,332.20 at the time of publication. Concerns about Fed monetary policy regarding additional interest rate hikes and recent economic reports, such as the low rate of new-home sales from January, have contributed to a rise in gold.
Using SPDR GOLD TRUST (GLD) as a tracker in our Stock Forecast Tool, the 10-day prediction window shows overall positive signals. The gold proxy is trading at $126.35, up 0.17% at the time of publication. Today’s predicted low is $126.14 (± 0.30) and the predicted high is $126.90 (± 0.30). The predicted close today is $126.45. Vector signals show 0.25% for today, moving to 1.03% 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
Yields are pulling back from last weeks gains due to uncertainty around Fed Chairman Powell’s Tuesday meeting with Congress. The continued pullback in yields can be attributed to undetermined attitudes towards inflation and the possibility of an additional fourth interest hike. The yield on the 10-year Treasury note is down -0.32% at 2.86% 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 followed by a downward correction in our 10-day prediction window. Today’s vector of -0.07% moves to +0.08% in three trading sessions before seeing another negative correction. The ETF is priced at $118.29 at the time of publication, up 0.14%. The predicted close today is $118.74 with a low and high of $118.08 (± 0.23) and $118.94 (± 0.23), 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 2.00% at 16.16 at the time of publication, and our 10-day prediction window shows steady negative signals. The predicted close is 13.05 with a vector of -20.02%. The predicted lows and highs are 9.74 (± 0.39) and 16.49 (± 0.66), 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.
Special Urgent Trading Invitation:
The next 30 days are the “sweet spot”
of this volatile market.
Don’t miss this opportunity to pick through the wreckage for the earnings reports the market overlooked.
URGENT: REGISTRATION EXPECTED TO FILL UP FAST!
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