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
Headline News: Wall Street is set for a lower open after the Group of Seven (G7) agreed to a global corporate tax rate of 15%. The move is an effort to crack down on corporate tax avoidance by the largest technology companies. However, the deal will still need to be negotiated over the next few months. Investors were encouraged by the weaker than expected jobs report on Friday that showed inflation might not be rapidly rising. Markets: The S&P 500 traded near the all-time high of 4238.04 but did not break through, closing at 4229.89 on Friday. The trading volume was low, with only 1,869,269,888 shares traded. RSI did move higher in support, closing at 60.41. The breakout came after a seven-day base had formed, so the index is in good shape to potentially move higher soon. There is also no overhead resistance to contend with if buying continues. Potential support will now be at 4209.52. 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… Read More
Headline News: Wall Street is set to open higher after investors appeared to ignore a report showing a rise in inflation. Consumer prices as measured by the personal consumption expenditures rose 0.7% in April and 3.1% for 12 months through April. Personal income also increased by 20.9% in March following the latest round of stimulus checks but was lower by 13.1% year over year. Also, the savings rate remained higher at 14.9%, and disposable personal income, after taxes and other withholdings, fell by 14.6%. Markets: The S&P 500 had a massive volume trading day as investors positioned themselves before releasing a significant inflation gauge. Volume came in at a staggering 3,396,979,200, but the index could only close flat at 4209.52. The heavy volume also shows the bulls and bears a still very active. RSI also traded flat, closing at 57.17. The index has formed the base we have been looking for and is set to potentially breakout and test the all-time high. We are moving our stance back to short-term bullish. Potential resistance could now come in at 4209.52, and possible support is at 4191.31. We are currently long-term bullish and short-term bullish. John N. Lilly III CPFA Accredited Portfolio… Read More
Headline News: U.S. stock futures are higher after comments from Federal Reserve officials calmed inflation fears. Fed vice chair Richard Clarida said he has faith in the central bank’s ability to engineer a “soft landing” if prices continue to push past what has been expected. Meanwhile, the yield on the 10-year treasury has moved lower by 14 basis points, also calming the fast-rising inflation fears. Markets: The S&P 500 rallied above resistance at 4191.31 only to sell off late closing at 4188.13. The selling was not intense as volume came in at only 2,109,542,400 shares traded. Also, RSI moved sideways, closing at 55.67. So, we feel a small base might form at this level before an attempt at the all-time high. The index has rallied over 3.5% off the 4061.41 low on 5/15/2021, and a consolidation of those gains here would be constructive. 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, 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… Read More
Headline News: Wall Street is set for a higher open after bond yields moved lower, propping up beaten-down mega-cap technology stocks. The yield on the U.S. 10-year bond moved to a two-week low, and Amazon(AMZN), Apple(AAPL), and Alphabet(GOOGL) were all up between 0.4%-1% in the pre-market. The lower bond yields help take the pressure off growth stocks whose cash flows are discounted at higher bond yields. Later today, the U.S. consumer confidence report will be released and is expected to move lower after a 14-month high in April. Markets: The S&P 500 moved past resistance at 4191.31, closing higher at 4197.05. However, the trading came on much lower volume of 1,841,332,224 shares traded. So, we can’t claim there is a new uptrend just yet due to a lack of overall participation yesterday. The RSI did move higher in support of the up move, closing at 56.92 and solidly above the middle line. The index needs a high volume day and another close above 4191.31 soon to keep the recent rally going. 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, RJFS Partner, DJWMG Windsor Wealth… Read More
Headline News: Wall Street is set for a higher open to start the week as technology and energy stocks are higher in pre-market trading. Stocks that benefit from the opening of the U.S. economy also gained in early trading. Investors appear to be in a “buy the dip” mood after the S&P 500 sold off by 4% at one point before a swift reversal. Meanwhile, the U.S. 10 year treasury yield was at 1.62%, which shows, at this time, inflation may not be increasing as fast as expected. Markets: The S&P 500 traded near resistance at 4191.31, but selling came in late in the day, closing lower at 4155.86. A failure at the resistance level was expected after two wide-ranging trading days. The index is now in a position to break through current resistance, and we feel that could potentially happen today. RSI also moved sideways and is also in a position to move higher with the S&P 500 today. 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, RJFS Partner, DJWMG Windsor Wealth Planners & Strategist Futures trading is speculative, leveraged, and involves substantial risks.… Read More
Headline News: U.S. stock futures are higher as recent economic data appeared to ease the fears of higher inflation. The U.S. jobless claims were reported at 444,000, and that has investor encouraged the April jobs report was a blip and not a long-term change in direction. Also, the Philadelphia Federal Reserve reported business activity fell to 31.5 from 50.2 in April. The report was more evidence that economic growth may not accelerate too fast and keep inflation tame this year. Markets: The S&P 500 rallied past resistance at 4128.59 to close higher at 4159.12. The volume was lower, with only 2,147,379,072 shares traded. So, we did get a follow-through day, but the volume is still not enough to declare a new uptrend. However, RSI did turn higher, moving through the middle line closing at 52.74 in support of the rally. Potential resistance is now at 4191.31, and a breakthrough of that level could indicate the bulls are back in charge. The likely scenario today is a low-volume sideways trading action to consolidate the two-day rally. 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, RJFS Partner,… Read More
Headline News: Wall Street is set for a lower open after yesterday’s FOMC minutes showed the Fed discussed tapering off bond purchases. The report showed policymakers were also discussing easing the crisis support if the U.S. economy continued to show strong growth. Meanwhile, the number of Americans filing for unemployment claims fell to 444,000 for the week ending May 15th. The report was the lowest number since mid-March 2020 and shows job growth has picked up this year. Markets: The S&P 500 sold off down near support at 4056.88 but rallied strongly to finish the day higher at 4115.68. The trading with 2,401,767,680 shares traded which was a substantial increase over yesterday’s trading. RSI could only manage a lateral move, so, for now, the rally is suspect until there is a follow-through day on above-average volume. The index has now put in a double bottom, leading to dip buyers possible coming back into the markets. Potential resistance could come in at 4128.59, and a move above that level would be very constructive for the index. 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, RJFS Partner,… Read More
Headline News: U.S. stock futures are lower as investors continue to worry about inflation, equity valuations, and a top in economic growth. Also, news that Senate Republicans and President Biden are still far apart on a new infrastructure deal is another concern. Meanwhile, later today, the FOMC April meeting minutes will be released, potentially giving guidance on the health of the U.S. economy. Markets: The S&P 500 sold off late in the day, closing at 4127.83, just below support at 4128.59. The volume did pick up with 2,310,848,256 shares traded, and RSI dove below the middle lien closing at 49.00. The heavy selling is a concern, and the 50-day moving average at 4076.46 is now in play as potential support. The index needs to rally today back above 4128.59, or more selling could come in and push it lower. Another wide range down day would negate last week’s rally, and the 4056.88 level would be the next possible support. 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, 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 to start the week after the S&P 500 fell 4% at one point last week. Investors appear to be leary of rising inflation and high stock valuations. Also, the Fed’s minutes will be released on Wednesday, giving more information on the potential for a rise in inflation. First-quarter earnings will wrap up this week, and so far, 86% of S&P 500 companies have posted positive earnings. Markets: The S&P 500 rallied for the second day in a row and closed higher at 4173.85. Over the last two days, the volume has trended lower, with Friday’s trading coming in with only 1,895,455,232 shares traded. The RSI index did move higher, moving through the middle line to close at 54.46. We feel the market requires rest, and there could be some selling today. However, that would be normal and constructive after two wide-ranging days. A small base at these levels could set up another rally soon. Potential resistance could come in at 4191.31, and possible support could come in at 4128.59. 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, RJFS… Read More
