Morning Commentary
Headline News:
U.S. stock futures are mixed after two major banks reported better than expected Q1 earnings. JPMorgan (JPM) beat estimates on both the top and bottom lines but was down over 1% in pre-market trading. Goldman Sachs (GS) reported record Q1 net profits and revenues and was higher by 1.7% in early trading. Also, crypto exchange company Coinbase (COIN) will begin trading on the Nasdaq exchange this morning. Investors will be monitoring the first day of trading closely as the crypto space continues to gain steam.
Markets:
The S&P 500 closed at another all-time high of 4141.59 after moving out of the small trading range. The base, once again, did not last long after a wide range day on 4/9/2021, which has been the pattern during the uptrend. The volume came in low at 2,051,974,656 while the RSI index remains in the overbought zone closing at 73.13. We question whether or not investors are pricing in good Q1 earnings ahead of the upcoming announcements, leading to a potential sell the news scenario. However, the uptrend is still in place, and the index remains bullish. Potential support could now come in at 4131.76, and possible resistance is now at 4,148.00.
We are currently long-term bullish and short-term bullish.
John N. Lilly III CPFA
Accredited Portfolio Management Advisor℠
Accredited Asset Management Specialist℠
Portfolio Manager, RJ
Partner, DJWMG
Windsor Wealth Planners & Strategist
Futures trading is speculative, leveraged, and involves substantial risks. Investing always involves risk, including the loss of principal, and futures trading could present additional risk based on underlying commodities investments.
The Relative Strength Index (RSI), developed by J. Welles Wilder, is a momentum oscillator that measures the speed and changes of price movements.
The S&P 500 is an unmanaged index of 500 widely held stocks that is generally considered representative of the U.S stock market. Past performance may not be indicative of future results. Keep in mind that individuals cannot invest directly in any index, and index performance does not include transaction costs or other fees, which will affect actual investment performance. Individual investors’ results will vary. Opinions expressed are those of the author John N. Lilly III, and not necessarily those of Raymond James. “There is no guarantee that these statements, opinions, or forecast provided herein will prove to be correct. “The information contained was received from sources believed to be reliable, but accuracy is not guaranteed. Investing always involves risk, and you may incur a profit or loss. No investment strategy can guarantee success. The charts and/or tables presented herein are for illustrative purposes only and should not be considered as the sole basis for your investment decision. International investing involves special risks, including currency fluctuations, different financial accounting standards, and possible political and economic volatility. Investing in emerging markets can be riskier than investing in well-established foreign markets.
This is not a recommendation to buy or sell any company’s stock mentioned above.
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