Headline News: Wall Street is set for a higher open despite inflation rising at the fastest pace since 1982. The Labor Department’s CPI report rose 0.8% for the month and 6.8% year over year. Food and energy prices, core CPI, were up 0.5% for the month and 4.9% year over year. Investors appear to feel the report will ease the pressure on the Federal Reserve to move ahead with its higher pace of tightening of monetary policy. Later today, the University of Michigan Consumer Sentiment report will be released, a potential market mover. Markets: The S&P 500 closed lower at 4667.45 and is now in the middle of a trading range at 4652.94-4702.87. We feel the index could trade in this range for a few days. However, today’s CPI report could have a negative effect on the index unless a higher inflation number was already priced into markets. So far this morning, the S&P 500 futures are higher by 37 points which could see the index test the upper end of the trading range. So, if the rally can hold for the first half an hour, we feel there could be a potential breakout above 4702.87 today. We are currently… Read More
Headline News: Wall Street is set for a lower open as investors appear to be on hold until tomorrow’s release of the U.S. inflation report. The Federal Reserve may announce a faster taper plan next week based on the results of the November CPI report due out on Friday. Also, the number of Americans filing new claims for unemployment benefits dropped to the lowest level in more than 52 years last week. Initial claims for state unemployment benefits fell by 43,000 to a seasonally adjusted 184,000 for the week ended December 4th. Markets: On Wednesday, the S&P 500 closed at 4701.21, just below the current resistance at 4702.87. The index has closed higher for three days in a row, so today should see some selling come into the markets. Also, the volatility index (VIX) moved below its 20 – day moving average, which is another good sign the recent sell-off is probably over for now. We are currently Intermediate-term bullish and short-term bullish. John N. Lilly III CPFA Accredited Portfolio Management Advisor℠ Accredited Asset Management Specialist℠ Portfolio Manager, RJFS Partner, DJWMG Windsor Wealth Planners & Strategist Futures trading is speculative, leveraged, and involves substantial risks. Investing always involves… Read More
Headline News: U.S. stock futures were higher after drugmakers Pfizer (PFE) and BioNTech (BNTX) announced that a three-shot course of their COVID-19 vaccine was shown to have a neutralizing effect against the omicron variant. A booster shot was reported to increase antibody protection 25- fold compared to the initial two-dose series. Travel stocks continued to rally, with Norwegian Cruise (NCLH) higher by 2.6% and Delta Air Lines (DAL) higher by 2.4%. Markets: On Tuesday, the S&P 500 quickly moved past resistance 4652.94 and closed higher at 4688.75. The trading came with up volume accounting for 85% of all shares traded, and that was the second 80% or higher up day in a row. Also, the RSI closed above the 50 level in support of the two-day rally. We are moving back to a short-term bullish stance and are encouraged that a new uptrend is potentially in place. Possible resistance could now come in at 4702.87, and potential support could be at 4652.94. We are currently Intermediate-term bullish and short-term bullish. John N. Lilly III CPFA Accredited Portfolio Management Advisor℠ Accredited Asset Management Specialist℠ Portfolio Manager, RJFS Partner, DJWMG Windsor Wealth Planners & Strategist Futures trading is speculative, leveraged, and involves… Read More
Headline News: U.S. stock futures are set to open 1% higher as concerns over the Omicron variant appear to be easing. Big tech stocks Alphabet (GOOGL), Microsoft (MSFT), Amazon (AMZN), and Apple (AAPL) were all higher by 2% in pre-market trading. Travel stocks were trading higher this morning, hoping the U.S. economy would not be shut down due to the new variant. Markets: The S&P 500 tested support at the 50-day moving average, 4547.46, and also tested resistance at 4598.53 before closing at 4591.67 on Monday. We would still like to see a close above the current resistance, 4598.53, soon potentially ending the recent downtrend. So far this morning, the index is trading at 4652.25 in pre-market trading, just under the potential resistance at 4652.94. A close higher at those levels would potentially move us back to short-term bullish. We are currently Intermediate-term bullish and short-term bearish. John N. Lilly III CPFA Accredited Portfolio Management Advisor℠ Accredited Asset Management Specialist℠ Portfolio Manager, RJFS 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… Read More
Headline News: Wall Street is set for a higher open as investors appear to be looking past the threat of the omicron variant’s effect on the U.S. economy. Equities tied to the economic reopening were higher and large technology equities were lower in pre-market trading. Meanwhile, comments by Fed officials suggested that the central bank could be set to raise rates sooner than currently expected. Markets: The S&P 500 traded in a wide range on Friday while testing resistance and briefly breaking through the support level at 4504.73. The volatility index (VIX) remained high, showing there is still a large amount of fear in the U.S. equity markets. So, wide range days could continue to be the norm until the uncertainty about the new COVID-19 variant and the pace of economic growth. A close above possible resistance at 4598.53 would be a positive and could bring in some buyers, but caution is still warranted until then. We are currently Intermediate-term bullish and short-term bearish. John N. Lilly III CPFA Accredited Portfolio Management Advisor℠ Accredited Asset Management Specialist℠ Portfolio Manager, RJFS Partner, DJWMG Windsor Wealth Planners & Strategist Futures trading is speculative, leveraged, and involves substantial risks. Investing always involves risk,… Read More
Headline News: Wall Street is set for a higher open despite the fact that the November jobs report coming in lower than expected. The Nonfarm payrolls for November increased by only 210,000 compared to the estimate of 573,000, and the unemployment rate fell to 4.2% compared to forecasts of 4.5%. Meanwhile, the omicron variant has now been detected in five U.S. states, but investors seem encouraged that symptoms have been mild so far. Markets: The S&P 500 rallied on Thursday, closing higher at 4577.10 on volume of 2,790,614,272. The index moved past the resistance at the 50-day moving average, tested the 4598.53 resistance level, and failed. The volatility index moved off the recent high but is still at oversold levels. So, we feel the S&P 500 can close higher today and possibly halt the recent selloff if there is a close above 4598.53. If selling should come in today, we feel the potential support at the 50-day moving average at 4542.95 will hold. We are currently Intermediate-term bullish and short-term bearish. John N. Lilly III CPFA Accredited Portfolio Management Advisor℠ Accredited Asset Management Specialist℠ Portfolio Manager, RJFS Partner, DJWMG Windsor Wealth Planners & Strategist Futures trading is speculative, leveraged, and… Read More
Headline News: U.S. stock futures are higher in early trading despite the first reported case of Omicron in the United States. Entertainment and leisure stocks were higher in the pre-market, with Boeing (BA), Royal Caribbean (RCL), and MGM Resorts (MGM) all higher by 2%. Meanwhile, Fed Chari Jerome Powell told Congress on Wednesday that the “economy is very strong and inflation pressure are higher. It is therefore appropriate in my view to consider wrapping up the taper of our asset purchases, which we announced at the November meeting, perhaps a few months sooner.” Markets: The S&P 500 moved below the 50-day moving average and closed lower at 4513.04 with volume of 3,044,670,208. The vast two-day increase in volume shows investors are now very concerned and want to hold safer investments. Also, the volatility index moved higher and is now near the 1/25/21 high of 37.51. The move below the 50-day average was surprising and has driven us to a short-term bearish stance for now. The next potential support level could not come in at 4465.40. We are currently Intermediate-term bullish and short-term bearish. John N. Lilly III CPFA Accredited Portfolio Management Advisor℠ Accredited Asset Management Specialist℠ Portfolio Manager, RJFS… Read More
Headline News: U.S. stock futures are much higher to start the day after the Private payrolls report came out better than expected. The ADP National Employment Report increased by 534,000 jobs last month, and the October report was revised higher by 1,000. Yesterday, Federal Reserve Chairman Jerome Powell testified before Congress and stated that inflation should not be considered ” transitory” in the future. That has investors eagerly awaiting the Beige Book report on current economic conditions due out today at 2:00 p.m ET. Markets: The S&P 500 sold off again on Tuesday, closing lower at 4567.00 on massive volume of 4,056,184,320. The index is now just above potential support at 4551.60, but the pre-market open is indicated to be at 4624.50, well above possible resistance at 4585.43. We feel these wide-range trading days will continue until there is some certainty on the Omicron variant’s impact on the U.S. economy. The volatility index also moved higher and is near the level where buying typically comes into markets. We believe any selling can be a potential buying opportunity. We are currently Intermediate-term bullish and short-term bullish. John N. Lilly III CPFA Accredited Portfolio Management Advisor℠ Accredited Asset Management Specialist℠… Read More
Headline News: Wall Street is set for a lower open after a warning from Moderna’s chief executive on the effectiveness of the COVID-19 shots against the Omicron variant. CEO Stephane Bancel told the Financial Times it could take months to develop and ship a vaccine that targets the Omicron variant. Also, Regeneron Pharmaceuticals Inc said its COVID-19 antibody treatment could also be less effective against the new variant. Markets: The S&P 500 gapped higher on the open and closed higher at 4655.27 on Monday. The trading came with above-average volume of 2,497,637,120 shares traded, and RSI moved back above the 50 level, closing at 53.66. The trading took the index back into an old trading range which was encouraging, but the index is set to gap lower at the open due to virus concerns this morning. We are hopeful the potential support at 4585.43 will hold today due to buyers coming in at that level last Friday, and that should make the 48585.43 solid support today. If the selling intensifies, the next level of possible support could come in at 4551.60. We are currently Intermediate-term bullish and short-term bullish. John N. Lilly III CPFA Accredited Portfolio Management Advisor℠ Accredited Asset… Read More
Headline News: Wall Street is set for a higher open and rebound after the heavy selloff on Friday. S&P 500 futures were higher by 45 points, although the World Health Organization announcing the omicron variant poses a “very high” global risk. Also, the South African doctor who first raised alarms stated that patients had “extremely mild” symptoms from the virus so far. However, investors appear to see the recent selloff as a buying opportunity this morning. Markets: The S&P 500 experienced heavy selling on Friday with 2,130,846,464 volume with only a half-day of trading. The RSI index moved below the important 50 level, closing at 44.44 in support of the selling. Although the short-term outlook is unsettled, the long to intermediate view is still positive, and we feel the recent selling could be short-lived. So far this morning, S&P 500 futures are higher as investors reassess the omicron risk to U.S markets. The volatility index (VIX) is now at levels that show extreme fear, and buying, typically, comes in those levels. Potential resistance could now come in at 4680.36, and possible support could now be at 4551.60. We are currently Intermediate-term bullish and short-term bullish. John N. Lilly… Read More
