Headline News: U.S. stock futures are sharply higher to start the week as investors appear to buy after last week’s selloff. Also, inflation expectations seem to be muted, and investors are beginning to respect the Fed’s stance that inflation is transitory. This morning, St. Louis Fed President Jeremy Bullard and Dallas Fed President Robert Kaplan will be giving speeches. Later in the day, New York President John Williams will also be speaking, and there could be new guidance on future Fed monetary policy. Markets: The S&P 500 moved below support at 4197.59 and then below the 50-day moving average to close at 4166.45 on Friday. The trading came with massive volume with 3,608,016,384 shares traded, and RSI dove below the mid-line closing at 43.37. The break of the 50-day moving average on the increase in volume has moved us to a short-term bearish stance. The next potential support level could now be at 4118.38. A close back above the 50-day moving average at 4181.59 would be constructive, but we don’t see that happening today. 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,… Read More
Headline News: U.S. stock futures are sharply lower this morning as investors appear to be fearful of rising inflation. However, St. Louis Fed President James Bullard said that it was natural for the Fed to tilt a little “hawkish,” and he said he sees the first interest rate increase in 2022. He also said, “We’re expecting a good year, a good reopening. But this is a bigger year than we were expecting, more inflation than we were expecting.” The comments had the 2-year treasury yield higher and the 10-year yield lower. The rise in the 2-year reflects higher expectations of the Fed raising rates, and the lower 10-year yield reflects less optimism for future economic growth. Markets: The S&P 500 traded down to support at 4197.59 and rallied to close higher at 4221.86. There was, finally, a substantial pick-up in volume with 2.580,717,824 shares traded. This morning, the S&P 500 futures are trading at 4180.25 as of 8:55 am. That would be an open below current support and right at the 50-day moving average at 4180.20. So, if buyers do not come in today, it is possible a new downtrend would be in place, changing the current dynamic of the… Read More
Headline News: U.S. stock futures are lower after the Federal Reserve moved up their timeline for rate hikes at Wednesday’s FOMC meeting. The FOMC signaled two rate hikes in 2023 and raised its inflation target for 2021 to 3.4% for the year. However, Fed Chari Jerome Powell said the projections for future rate hikes should be “taken with a grain of salt” and reiterated that he believes that inflation is transitory. Meanwhile, the number of Americans filing new unemployment claims increased last week for the first time in more than a month. Initial claims for state unemployment benefits totaled a seasonally adjusted 412,000 for the week ended June 12. Markets: The S&P 500 sold off after the FOMC meeting announcement and traded down to old support at 4197.59. The index did rally off that level, closing lower at 4223.70. There was a pick-up in the trading volume with 2,217,254,912 shares traded, and RSI closed lower at 55.44. Today, old support will now become new potential resistance, with the first level coming in at 4238.04. Possible support will remain at 4197.59, and a move below that level could bring in another round of substantial selling. So, the market needs to rally… Read More
Headline News: Wall Street is set for a flat open as investors await comments from the Federal Reserve after today’s FOMC meeting. The Fed has recently tried to calm fears of rising inflation. However, a jump in the retail sales report on Tuesday’s has economist worried the Fed would begin to tighten its loose monetary policy later in the year. Markets: The S&P 500 briefly traded at a new intraday all-time high of 4257.16 but sold off to close lower at 4246.59. The trading once again came on lower volume with only 1,827,635,456 shares traded, and RSI also closed lower at 61.34. We feel today’s FOMC meeting could be the catalyst that brings about a potential new all-time closing high. The index appears ready and willing to break out and start a possible new uptrend. 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 risk, including the loss of principal, and futures trading could present additional risk based on underlying commodities investments. The Relative Strength… Read More
Headline News: U.S. stock futures are flat ahead of Wednesday’s Federal Reserve meeting. Investors are looking for assurance that the Fed sees the current inflation rate as “transitory” before potentially committing new funds to equities. Meanwhile, U.S. retail sales fell more than expected in May, coming in with a 1.3% drop for the month. However, there was a shift to sectors that have been closed due to the pandemic. As a result, demand was higher for air travel, hotel accommodations, dining out, and entertainment. Markets: The S&P 500 closed at a new all-time high of 4255.15, and volume remained low with only 1,846,584,064 shares traded. We feel the index will potentially not follow through and move higher until mid-day on Wednesday after the FOMC meeting. Until then, the trading could continue to come on low volume and a low trading range. 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 risk, including the loss of principal, and futures trading could present additional risk based on underlying… Read More
Headline News: U.S. stock futures are lower to start the week as investors wait to hear from the Federal Reserve on Wednesday. The Fed is expected to maintain a dovish monetary policy while claiming the recent rise in inflation is short-term. Markets: The S&P 500 tried to breakout above the 4249.74 level but could only manage to close the day at 4247.44. The Trading volume came in at only 1,677,576,448 shares traded, but RSI did move higher, closing at 62.49. We are still expecting a breakout soon, and the index needs a catalyst to bring in more buyers. That could come later this week after the Federal Reserve meeting on Wednesday. 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 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… Read More
Headline News: U.S. stock futures are higher as investors appear to believe the recent surge in inflation will only be temporary. The recent surge is now being blamed on pent-up demand for goods and a lagging supply chain. There is also a belief that the Fed will not be tightening policy and will remain accommodative. Markets: The S&P 500 closed at a new all-time high of 4239.18, but we don’t consider that a breakout. The trading came with only 1,949,987,648 shares traded, and some selling came into the market late in the day. RSI did move high in support of the up-day closing at 61.21. The index will need to close higher on the above-average volume before claiming a new uptrend is in place. Potential resistance is now at 4249.74, and possible support could come in at 4238.04. 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 risk, including the loss of principal, and futures trading could present additional risk based on underlying commodities investments. … Read More
Headline News: Wall Street is set for a higher open despite consumer prices rising 5% in May, which was the fastest pace since the summer of 2008. Also, the report excluding food and energy came in a 3.8% gain, the highest since 1992. A significant increase in used car prices was the main driver for the increases, with a 29.7% increase for the past 12 months. The gasoline index rose 56.2% year over year, and food prices were tepid, coming in at only a 2.2% increase over the same period. Markets: The S&P 500 failed for the fourth time to move past the all-time high of 4238.04 and closed lower at 4219.55 on Wednesday. Volume came in at only 1,789,478,080 shares traded, and the RSI index closed lower at 58.05. The more a resistance level is tested, the weaker it becomes because more and more sellers go away. So, we continue to believe a break out to a new all-time high will still potentially happen 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… Read More
Headline News: U.S. stock futures were flat to start the day as investors appear to be waiting for an inflation report due out on Thursday morning. The 10-yr Treasury yield was near a three-month low this morning in part due to the belief inflation is not rapidly rising. The decline in long-term interest rates has seen investors favoring large-cap growth stocks, which could positively affect markets today. Markets: The S&P 500 tried to breakout out past the all-time high of 4238.04 but failed, closing lower at 4226.52. Trading volume came in at only 1,748,923,520, which helps explain why there was no breakout. Also, the RSI was flat, closing at 59.72. So, the market took a break to consolidate the recent gains off the 6/3/2021 low of 4167.93. We feel a potential new high will occur soon, and a possible new uptrend will be in place. 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 risk, including the loss of principal, and futures trading could present… Read More
Headline News: Wall Street is set for a higher open, and the S&P 500 could achieve a new all-time high when trading begins. Rising inflation is still a concern, along with the Fed potentially starting to tapper its bond program. However, investors are hoping the Fed will keep its inflation target low and keep easy monetary policies in place. The consumer price index report will be released on Thursday and is expected to be 4.7% on an annual basis. Markets: The S&P 500 tried to breakout out past the all-time high of 4238.04 but failed, closing lower at 4226.52. Trading volume came in at only 1,748,923,520, which helps explain why there was no breakout. Also, the RSI was flat, closing at 59.72. So, the market took a break to consolidate the recent gains off the 6/3/2021 low of 4167.93. We feel a potential new high will occur soon, and a possible new uptrend will be in place. 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
