Headline News: U.S. stock futures are lower to start the day but are off the lows after a key inflation report was released. The personal consumption expenditures price index (PCE) showed a slow inflation rate in January. The lower increase was .03% for January and 1.5% year over year. The news sent the 10-year yields lower to 1.47% after they have risen to 1.6%. Meanwhile, Democrats continue to struggle with passing President Biden’s $1.9 trillion stimulus package. The bill was blocked when it was determined the $15 minimum wage hike could not be included in the current bill. Markets: The S&P 500 traded in another wide-ranging day now sites just below potential support at 3830.41. The index moved through two support levels during the day to close lower at 3829.34. The next possible support level is the critical 50-day moving average at 3805.12. Volume was again huge with 2.918,171,904 shares traded, and RSI moved below the middle line to close at 45.76. So, a close below the 50-day could potentially bring in a new round of selling. A close above 3830.41 and, more important, 3870.90 would be good sign sellers have lost control. We are currently long-term bullish and short-term… Read More
Headline News: U.S. stock futures were higher as investors hope the late-day rally on Tuesday will carry through to today’s trading. Yesterday, Fed Chairman Powell testified that inflation was “soft” and that the U.S. economy was “a long way from our employment and inflation goals.” Also, the Food and Drug Administration’s staff endorsed Johnson & Johnson’s (JNJ) single-shot vaccine for emergency use. The U.S. will now have three vaccine’s and hopes are higher for a faster rollout for the nation. Markets: The S&P 500 had a wide trading range Tuesday that saw a test and break of support at 3830.41 and a test of resistance at 3892.59. The index closed higher on the day at 3881.37 with above-average volume of 2,933,668,416. RSI did move slightly higher and closed at 54.83 and did not provide confirmation of the up move. So, today’s trading could be critical if any new potential uptrend will form soon. If possible resistance at 3892.59 is breached on high volume, we feel the index’s recent selling could be done. We are currently long-term bullish and short-term cautious. John N. Lilly III CPFA Accredited Portfolio Management Advisor℠ Accredited Asset Management Specialist℠ Portfolio Manager, RJ Partner, DJWMG Windsor Wealth… Read More
Headline News: U.S. stock futures are lower as investors are selling technology stocks that currently have a high valuation. The selling is a reaction to an increase in interest rates and an increase in the pace of inflation. Also, Federal Reserve Chairman Powell will testify before Congress, and he is expected to announce the Fed will tolerate the new rate of inflation. Later today, the U.S. consumer confidence report will come out and will also provide guidance on the U.S. economy. Markets: The S&P 500 closed at 3876.50 on Monday, which was well below support at 3892.59. The trading increased as 2,737,207,808 shares were traded, and RSI also confirmed the down move, closing at 54.03. The significant increase in volume possible shows the sellers now have control. We have now moved to a short-term cautious stance due to the break of the support line. Potential support could now come in at 3870.90 and then at the 3830.41 level. We are currently long-term bullish and short-term cautious. 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… Read More
Headline News: U.S. stock futures are lower on fears of rising Treasury yields leading to increased inflation and fears of high equity valuations. The Yield on the 10-year Treasury note has passed the 1.30% level considered by many to be a key level for the Federal Reserve. However, Chairman Powell is expected to reiterate a commitment to an easy monetary policy in his semi-annual testimony before Congress later this week. Also, fears of a slow vaccine rollout continue to be a significant concern for investors. Markets: The S&P 500 tested resistance at 3931.50 only to close lower at 3906.71 on Friday. The index is now back in the middle of the current trading range and is still forming a base. Volume was much higher, with 2,301,386,496 shares traded. The 3931.50 level has now been tested five times, and the sellers could be drying up soon at that level. If so, we continue to believe a potential new uptrend will begin. The pick-up in volume could also be a sign that the sellers could be done, but we will have to wait and see if the index can breakout with an above-average volume day. We are currently long-term bullish and short-term… Read More
Headline News: U.S. stock futures are higher despite new fears of a slowing economy and further pullbacks in the S&P 500. Concerns over high stock valuations and a slow vaccine rollout have investors cautious. Currently, stocks are trading at 22 times 12-month forward earnings, which is the most expensive since the late 1990s during the dot-com bubble. Meanwhile, the IHS Markits’ flash reading on Manufacturing is reported later today and is expected to show lower U.S. factory activity. Markets: The S&P 500 traded down to 3885.03 and below support at 3892.59 but rallied to close at 3913.97. The index is now back in the middle of the recent trading range and the base that started on 2/9/2021. Volume was good with 2,002,668,544 shares traded, but the RSI index moved lower to close at 61.77. The reversal was impressive because support was broken for a second time, but the fact that buyers poured back in is a good sign that a possible new uptrend could start. We feel the buying could carry over into today and possibly help push the index back to the potential resistance at 3931.50. We are currently long-term bullish and short-term bullish. John N. Lilly III CPFA… Read More
Headline News: U.S. stock futures were flat as investors reacted to the January retail sales report and release of the latest FOMC minutes. The Federal Reserve is expected to keep monetary policy loose and keep interest rates low until inflation rises to 2%. The Commerce Department reported that January sales surged by a seasonally adjusted rate of 5.3%. Also, consumers increased savings, which was reported at $2.38 trillion in December. The U.S. economy is now forecast to grow by 4.3% in 2021. Markets: The S&P 500 moved to a new all-time trading high of 3950.43 but sold off almost immediately to close lower at 3932.59. There was a pick in volume with 2,283,136,000 shares traded. The rejection of a new closing high with higher volume shows the index may be moving too far too fast, and more basing action might be needed to start a new uptrend. The RSI index did not move higher along with the S&P 500 and provided more proof of an index that is not ready to move higher just yet. 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,… Read More
Headline News: U.S. stock futures are lower as investors appear to be taking profits after the recent rally in the S&P 500. One catalyst for the rally has been corporate earnings, with 82% of 355 S&P firms topping estimates for the fourth quarter. Meanwhile, recent Reuters polls showed the U.S. economy is expected to reach pre-COVID-19 levels within a year. This comes after data showed a large drop in the number of new virus cases and hospitalizations in the United States. Markets: The S&P 500 traded in another broad-ranging day and again tested and held support at 3892.59. The volume was extremely light, with only 1,985,404,288 shares traded. The index is now forming a textbook base that will potentially lead to another new closing high soon. The RSI index is also moving sideways and forming a base confirming the trading action on the S&P 500. Potential support will remain at 3892.59, and possible resistance could come in at 3931.50. 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… Read More
Headline News: U.S. stock futures are higher and suggest a new all-time high open for the S&P 500. Fourth-quarter earnings have exceeded expectations easing concerns that markets were overvalued. The Labor Department announced that the U.S. CPI increased 0.3% last month and year over year rose 1.4%. Later today, Fed Chairman Jerome Powell will give a speech and is expected to say the Fed will tolerate a slow growth in inflation for now. The news appears to have investors in a bullish mood to start the day. Markets: The S&P 500 briefly traded at a new all-time high at 3918.35 only to sell off later to close lower at 3911.23. Again, volume was below average with only 2,053,238,144 shares traded, and RSI moved sideways to close at 63.99. We are hopeful the trading action is the start of a base and a rest period so the index can continue the recent uptrend soon. Potential support could still come in at 3892.59, and possible resistance could now come in at the 3918.35 level. 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… Read More
Headline News: U.S. stock futures are lower after closing at another all-time high on Monday. A lack of negative catalysts and strong corporate earnings has been cited as the reason for the recent six-day rally. Today, House Democrats will reportedly move forward with a stimulus bill that includes $1,400 checks with $75,000/year eligibility. The stimulus will be the first step toward the proposed $1.9 trillion bill President Biden has proposed to prop up the U.S. economy. Markets: The S&P 500 closed at 3915.59 on Monday, which was yet another all-time high. Also, once again, volume was low with 2,148,268,800 shares traded, which was below average. We continue to believe the index is extended and needs some sideways trading to consolidate recent gains. The first potential support level could come in at 3892.59 and then possibly at 3874.93. If selling should come in, the down move could be swift and present a possible buying opportunity. 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… Read More
Headline News: U.S. stock futures are trading at new all-time highs to start the week on hopes of a new relief package, and a speedy vaccine rollout that will prop up the U.S. economy. Treasury Secretary Yellen said if Congress approves the $1.9 trillion plan, the county could be at full employment in 2022. The CDC also announced that 31.59 million people had received one or more doses of the COVID-19 vaccines, while 9.1 million people go the second shot as of Sunday. Markets: The S&P 500 closed at another all-time high at 3886.83 on Friday, capping off a massive rally for the week. However, volume continues only be average, which is a concern. The index is not yet overbought, so there is room to potentially move higher this week. Potential support could come in at 3874.93 and then at 3859.75. Possible resistance will be the all-time high at 3894.56. We feel some sideways trading would be healthy but the recent uptrend should be in place as a new trading week starts. 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… Read More
