Headline News: Wall Street is set for a lower open as a private payroll report came in less than expected. The ADP National Employment Report was 330,000 jobs last month, well below the estimate of 695,000 jobs. Employers continue to struggle to find workers to fill 9.2 million job openings despite 9.5 million people being unemployed. Also, continued fears of a rise in COVID-19 cases have investors cautions to start the trading day. Markets: The S&P 500 closed higher at a new all-time closing high of 4423.15. The day’s trading came with good volume with 2,164,357,888 shares traded, and the Advance/Decline line moved to a new high. The one possible issue is the Net New High index actually moved lower. However, the fact the Advance/Decline line move to a new high first has us confident there will potentially be a new uptrend starting soon. Today could be a sideways day since yesterday was such a broad-ranging day, but it will be constructive for the S&P 500 going forward. 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… Read More
Headline News: Wall Street is set for a higher open as second-quarter earnings continue to come in better than expected. Earnings are now estimated to have grown 90% versus the forecast of 65.4% at the start of July, as reported by IBES data from Refinitiv. However, a rise in COVID-19 cases, along with the recent regulatory crackdown by China, has investors potentially cautious about adding new capital into U.S. markets. Markets: The S&P 500 closed lower at 4387.16 on Monday, but the index continues to build a base within the trading range. Potential resistance could now come in at 4422.73, and possible support is now at 4372.51. The net new high index is on the brink of achieving a high for 2021, which is a good sign the index could test the all-time high soon. 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 risk, including the loss of principal, and futures trading could present additional risk based on underlying commodities investments. The… Read More
Headline News: Wall Street is set for a lower open after an inflation report came in higher than expected. The personal consumption expenditures price index excluding food and energy increased to 3.5% in June, and that was the most significant increase since July 1991. Year over year, the index was 4% higher from this time last year. Personal income rose 0.1%, while consumer spending increased 1%, both coming in better than expected. Fed officials said they expect the inflation surge to be temporary as it has come from industries sensitive to the economic reopening. The slowdown in the supply chain was cited as a problem, but it too is expected to correct soon. Markets: The S&P 500 tested and failed at the all-time high on Thursday but closed higher at 4419.15. The index now has four-day base forming, which is what we have been hoping to see. However, in pre-market trading, the index is set to open lower by 34 points. So, a test and hold of potential support at 4372.51 would be good and would keep the base in place. Also, the Advance/Decline line moved to a new high in support of the trading high. However, the New High… Read More
Headline News: Wall Street is set for a higher open a day after the Federal Reserve stated the U.S. economic recovery was on track. The Fed also did not indicate a tapering of current policy is in the works. Meanwhile, this morning GDP for the second quarter came in at 6.5%, well below an expected increase of 8.4%. The overall increase came from an increase in personal expenditures of 11.8%, as consumers accounted for 69% of all activity. Markets: The S&P 500 was flat on Wednesday and traded inside the previous day’s range, creating an “inside day.” Typically an inside day is a short pause before a wide-ranging day in either direction. So far this morning, the futures point to a higher open, so we could potentially see the all-time high tested today. The best course of action would be another inside day that continues to form a base before tested the all-time high. Also, the last two trading days have closed lower with a pick up in the volume compared to the volume during the five-day rally. So, we still feel some caution is warranted. We are currently Intermediate-term bullish and short-term bullish. John N. Lilly III CPFA Accredited… Read More
Headline News: Wall Street is set for a higher open after a slew of positive second-quarter earnings reports were released late on Tuesday. Apple (AAPL) is trading lower while Microsoft (MSFT) and Alphabet (GOOG) are both trading higher in the pre-market. All three companies beat top and bottom-line estimates and had record-setting quarters. All eyes will be on the Fed meeting later today, where the central bank is expected to leave the fed funds rate unchanged. However, comments on future tapering of current policy, inflation, and the Delta variant could be market moving. Markets: The S&P 500 traded down to support at 4371.60 and rallied late in the day to close at 4401.46. The buying that came in at the support level was strong, so the support will be hard to breach if tested again. Potential resistance could now possibly come in at 4423.73 if the buying continues today. We would like to see a base form here between the support and resistance lines for a few days before an attempt at a new high. If the 4371.60 is taken out, the selling could accelerate, so caution is warranted today. We are currently Intermediate-term bullish and short-term bullish. John N.… Read More
Headline News: Wall Street is set for a lower open, as China imposed tighter restrictions on their American stock exchange-listed companies. Investors await earnings for the largest tech companies and a two-day Federal Reserve meeting this week. Chinese companies Alibaba Group (BABA) and Baidu (BIDU) were down 3% in pre-market trading after the restrictions were announced. Later this week, Apple (AAPL) and Microsoft (MSFT) will announce earnings for the second quarter, potentially two market-moving announcements. Meanwhile, the Fed meeting could see a policy shift to a faster tightening of the current policy due to the recent spike in inflation. Markets: The S&P 500 rallied to a new all-time high on Friday, closings at 4411.79 with below-average volume of 1,771,337,600. The index has now moved 4.2% off the 7/19/2021 low of 4233.13 after an impressive four-day rally. However, the Advance/Decline line and the New High indexes have not also made a new high. Typically negative divergences are short-term warning signs, but at this point, unless there is any negative news, the market looks ready to move higher potentially. If selling should come in, there is potential support at 4381.20 and then 4371.60, but dip buyers should step in to support those… Read More
Headline News: U.S. stock futures were higher as second-quarter earnings continue to come in better than expected. Twitter (TWTR) was 4% higher in pre-market trading, and Snap (SNAP) was set to open higher by 17%. Investors appear encouraged that earning next week from the mega technology companies will be positive and has the bulls back in charge to end the week. Markets: The S&P 500 closed higher at 4367.48 and is now just under potential resistance at 4371.60. The volume came in lower for the third day in a row, with only 1,856,150,272 shares traded. We feel the index needs to trade sideways here and begin to build a new base. However, the futures point to an open at 4379.00, indicating another rally and an open above the current resistance level. More importantly, the index has almost fully recovered from Monday’s sell-off and is now back in a position to potentially test the old high soon. 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, 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 lower after an unexpected rise in the jobless claims report this morning. Initial filings for unemployment insurance totaled 419,000 for the week ending July 17, well above the 350,000 estimates. Meanwhile, second-quarter earnings continue to come in better than expected, and so far, 88% of companies that have reported have beaten their earnings estimates, and 84% have beaten the revenue expectations. Markets: The S&P 500 rallied again on Wednesday, closing higher at 4358.69 while moving through important resistance. The rally had decreasing volume, but we feel there is enough bullish momentum to move us back to a short-term bullish stance. Also, the Advance/Decline line broke a downtrend line, and RSI continues to higher in support of the two-day rally. Potential support could come in at 4329.38, and possible resistance is now at 4371.60. Today could be a slow day with flat trading which would be constructive for the continuation of the rally. 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, RJFS Partner, DJWMG Windsor Wealth Planners & Strategist Futures trading is speculative, leveraged, and involves substantial risks. Investing… Read More
Headline News: Wall Street is set for a higher open as second-quarter earnings continue to come in better than expected, and economic growth stocks were also back in favor. Johnson & Johnson (JNJ), Coca-Cola (KO), and Harley Davidson (HD) were both higher after good reports. Also, Chevron (CV), Exxon (XOM), and Halliburton (HAL) were higher, possibly pointing to an increase in the economic recovery trade. So far, the earnings reports have justified the high stock valuations at which the markets are currently trading this year. Markets: The S&P 500 had a major reversal on Tuesday that took the index higher by 1.52%. The rally came on significant volume with 2,460,174,080 shares traded, and up volume accounted for 89.8% of the trading. The RSI index moved back above the middle line closing at 53.56, and the Advance/Decline line also turned higher. Potential resistance could now come in at yesterday’s high of 4336.84, and we now know where the sellers will possibly come into the market. If the index can follow through today will heavy volume it the recent sell-off could potentially be over. We are currently long-term bullish and short-term bearish. John N. Lilly III CPFA Accredited Portfolio Management Advisor℠ Accredited… Read More
Headline News: Wall Street is set for a higher open as second-quarter earnings are coming in better than expected. Shares of IBM (IBM) were higher after strong Q2 earnings, and interest rate sensitive bank stocks Citigroup (C), JPMorgan (JPM), and Goldman Sachs (GS) were also higher. So far, 41 S&P 500 companies have reported earnings, and 90% have beaten expectations. Investors appear to be more focused on the long-term outlook for corporations and, for now, see the Delta variant as a short-term situation. Markets: The S&P 500 had a massive sell-off and moved below three support levels only to rally late to close lower at 4258.49. The index briefly breached the 50-day moving average, but buying came in near where we thought it would. The volume was huge, with 2,831,611,392 shares traded, and down volume accounted for 85% of the trading. The index could see dip buyers come in early this morning and even test potential resistance at 4287.04. However, we still believe more selling is coming, and another test of the 50-day average could possibly occur soon. We are currently long-term bullish and short-term bearish. John N. Lilly III CPFA Accredited Portfolio Management Advisor℠ Accredited Asset Management Specialist℠ Portfolio… Read More
