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
Headline News: U.S. stock futures are set to open lower by at least 1% after a spike in global COVID-19 cases raised concerns about economic growth. The delta variant has spread among the unvaccinated, and there the U.S. has averaged 30,000 new cases a day for the last seven days. Also, more worries about a rapid rise in U.S. inflation even as the economy continues to open back up could slow down consumer spending. Markets: We have been concerned a pullback was in the works due to the recent trading action of the S&P 500. The S&P 500 closed below support at 329.79 and, as of this morning, is set to open lower at 4271.75. So, this would bring in potential support at 4257.16 and then the 50-day moving average at 4239.17. We also feel the 50-day moving average will be strong support, and any pullback to that level would be a possible buying opportunity. For today, we think caution is warranted and will not be looking to make any new buys. We are currently long-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… Read More
Headline News: Wall Street is set for a higher open after U.S. retail sales increased in June and increased expectations the economy grew in the second quarter. The report showed a 0.6% increase, and May was revised lower to show sales falling at 1.7%. Later today, the University of Michigan Consumer Sentiment for July will be released along with May’s business inventories. Markets: The S&P 500 closed at 4360.03, which was just below the first level of support at 4361.88. The trading came with a pick-up in volume with 1,989,714,816 shares traded, and RSI also moved lower, closing at 62.65. The next level of potential support is still at 4329.79, and we feel that level will be tested 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 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 Relative Strength Index (RSI), developed by J. Welles Wilder, is a momentum oscillator that measures… Read More
Headline News: It appears a lot of the good news has already been priced into stocks. U.S. stock futures are lower even as second-quarter earnings continued to beat expectations. Also, the yield on the 10- year Treasury continues to move lower, which is raising fears about a global recovery as Covid-19 cases are rising. Meanwhile, the number of new unemployment claims fell last week, but worker shortages are still hampering businesses ‘ efforts to hire people to meet demand. Initial claims for unemployment benefits fell 26,000 to a seasonally adjusted 360,000 for the week ended July 10th. Markets: The S&P 500 traded in a channel for the third day in a row and is now forming a base. However, the Advance/Decline line moved below an upward trend line despite the index briefly trading at a new intraday all-time high. The negative divergence is typically a warning more selling could be potentially coming soon. If so, possible support is still at 4361.88, but that level has been tested twice and is weak. The next level could possibly come in at 4329.79 if any selling comes into the markets. We are currently long-term bullish and short-term bearish. John N. Lilly III CPFA… Read More
Headline News: U.S. stock futures are higher after Federal Reserve Chairman Jerome Powell is set to say the central bank was still ways off from altering its easy policies. The remarks will come today in the Chariman’s semiannual testimony before Congress, and he is also expected to state he expects inflation to moderate later in the year. Also, second-quarter earnings have started, and investors will be watching the reports closely for signs U.S companies are still financially strong. Markets: The S&P tried and failed to break out above resistance at 4386.68 and closed lower at 4369.68. Hopefully, the index will now form a new base before attempting to achieve another new high. If, so potential support could now come in at 4361.88, and possible resistance is now at 4386.68. The Advance/Decline line is close to breaking an uptrend line, so we feel there is a chance the index is still in danger of a potential short-term pullback 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 Manager, RJFS Partner, DJWMG Windsor Wealth Planners & Strategist Futures trading is speculative, leveraged, and involves substantial risks. Investing… Read More
Headline News: U.S. stock futures are lower after new data showed consumer prices rose in June. The CPI increased by 0.9%, while the core CPI rose 4.5% year over year for the month. That was the most significant increase in 13 years for the month of June, which is further evidence the economic recovery is gaining momentum. A rise in vaccinations, low interest rates, and continued government stimulus is increasing consumer demand, straining the supply chain, and raising prices in the U.S. economy. Markets: The S&P 500 closed at another new all-time high at4384.63, and the index has moved 2.2% higher in three days. However, during that three-day rally, the volume has been lower each day, and yesterday had only 1,705,771,904 shares that were traded. We will continue to be concerned about the lack of volume because we feel that is a sign of selective buying. Today, potential resistance could come in at 4386.68, and possible support will remain at 4361.88. We are currently long-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 lower as concerns about an uptick in coronavirus cased continue to grow. Australia will reportedly extend its lockdown in Sydney, and South Korea will enforce stricter social distancing rules. Meanwhile, the second-quarter earnings-reporting season will begin tomorrow, and investors will want to see if the earnings can match equity valuations after the rally in the S&P 500. Markets: The S&P 500 closed at a new all-time high at 4369.55 Friday, but volume was low with only 1,790,340,224 shares traded. Possible resistance could now come in at 4371.60 if the market opened higher today. Potential support could now come in at 4361.88 and then 4329.79, and we feel the second level will hold if tested today. The lack of volume is a concern, and some profit-taking would be expected after such a broad-ranging trading day. We are currently long-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 to open lower today as fears rise that the continued spread of the COVID-19 variant will slow the U.S. economy’s growth. The FOMC meeting notes released on Wednesday showed the Fed feels the U.S recovery has a long way to go. However, Atlanta Fed President Raphael Bostic warned that a spike in the virus could hamper the economic recovery. Also, the 10-year yield fell by another four basis points to 1.28% and is another sign investors are now in a risk-off mood. Markets: The S&P 500 closed at yet another all-time new high at 4358.13 on Wednesday. The RSI index moved back into the overbought territory after closing at 71.19. This morning, the S&P 500 is down 1.29% in pre-market trading and is set to open under the support level at 4300.73. The next potential support level could then possibly come in at 4274.67. There is also possible support at the Fibonacci 50% retracement level at 4262.93, and we feel the index will hold above this level for today. If the selling becomes intense, there is a possible strong support level at 4257.16. We are moving to a short-term bearish stance today. We are… Read More
