Headline News: Wall Street is set for a higher open after continued good Q1 earnings results. Bank of America (BAC) reported better than expected earnings and was higher by 1.3% in pre-market trading. Newly listed stock Coinbase (COIN) was higher by 8.8% this morning, a day after first-day trading that saw its market cap briefly touch $100 billion. Meanwhile, U.S. retail sales increased by 9.8% in March, and February’s report was revised higher to 2.7%, showing an increase in consumer demand. Markets: The S&P 500 traded sideways on Wednesday and has formed a small trading range of 4120.87-4151.69. The RSI index moved below the oversold zone, closing at 69.37, typically bringing in the sellers. A move above the 4151.69 level could be seen as bullish and attract new buyers since there will be no overhead resistance. We would like to see the trading remain inside the new range before continuing the impressive recent 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, 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 mixed after two major banks reported better than expected Q1 earnings. JPMorgan (JPM) beat estimates on both the top and bottom lines but was down over 1% in pre-market trading. Goldman Sachs (GS) reported record Q1 net profits and revenues and was higher by 1.7% in early trading. Also, crypto exchange company Coinbase (COIN) will begin trading on the Nasdaq exchange this morning. Investors will be monitoring the first day of trading closely as the crypto space continues to gain steam. Markets: The S&P 500 closed at another all-time high of 4141.59 after moving out of the small trading range. The base, once again, did not last long after a wide range day on 4/9/2021, which has been the pattern during the uptrend. The volume came in low at 2,051,974,656 while the RSI index remains in the overbought zone closing at 73.13. We question whether or not investors are pricing in good Q1 earnings ahead of the upcoming announcements, leading to a potential sell the news scenario. However, the uptrend is still in place, and the index remains bullish. Potential support could now come in at 4131.76, and possible resistance is now at 4,148.00.… Read More
Headline News: Stock futures are lower after U.S. federal health agencies recommended pausing the use of Johnson & Johnson’s single-dose COVID-19 shot. Meanwhile, the consumer price index for March rose 0.6% in March and 2.6% from March 2020. Core CPI, excluding food and energy, increased 0.3% and 1.5% year over year. Biden administration economists are now expecting inflation in the coming months, but they also said the increase could be temporary as the economy opens back up later this year. Markets: On Monday, the S&P 500 traded sideways, trading in a small range after achieving another all-time intraday high. The index has now formed a short-term trading range of 4095.51 and 4131.76. The volume was again low with only 1,911,669,120 shares traded, and the RSI index remains overbought, closing at 72.00. Recently the bases that have formed have only been 2-3 days long, so we are expecting the same timeframe to apply to this new potential base. The outcome of Q1 earnings and investor’s reaction to the recent inflation numbers could be critical to the next market move. We are currently long-term bullish and short-term bullish. John N. Lilly III CPFA Accredited Portfolio Management Advisor℠ Accredited Asset Management Specialist℠ Portfolio… Read More
Headline News: U.S. stock futures are lower as investors prepare for the start of the first-quarter earnings season. S&P 500 earnings are expected to rise by 25% from a year ago, according to Refinitive IBES data and the most significant quarterly gain since 2018. Later this week, U.S. consumer price data will be released and could ignite another potential rise in bond yields. So, the trading week could be choppy until all the week’s data releases are complete. Markets: The S&P 500 raced to another new all-time high, closing at 4128.80 on Monday. However, the trading was extremely light, with only 1,873,411,968 shares traded. The low volume has not been an issue during the recent uptrend, but we will continue to monitor because it will become important again. The RSI index is now in the overbought zone closing at 72.17, which could indicate possible selling today due to profit-taking. Potential support could now come in at the 4095.51 level, and possible resistance will be the recent high at 4129.48. 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… Read More
Headline News: U.S. stock futures are lower as investors appear to be taking gains after a two-day rally. Also, the start of the first-quarter earnings season could have investors in a wait-and-see mode. The progress of President Biden’s new infrastructure proposal will also be closely watched. Later today, the U.S job openings report will be released and could give more clues on the economic recovery’s health. Markets: The S&P 500 closed at another all-time high at 4077.91, but volume remained low with only 2,220,003,840 shares traded. The RSI index is close to the overbought level, closing at 68.27 in support of the rally. The low volume and a potentially overbought index are a small concern, but there is a new uptrend now in place. Possible resistance could come in at 4083.42, and potential support could come in at 4034.44. A down or sideways trading day is likely today after two strong rally days. 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 involves risk, including the loss… Read More
Headline News: U.S. stock futures are higher after the most robust job growth in seven months was released last Friday. The U.S. nonfarm payrolls came in at 916,000 for March, and February was revised upward to 468,000. The unemployment rate fell to 6% from 6.2%. Investors will now be watching future economic reports to confirm a strong economy and a continuation in job growth. Also, the start of corporate earnings season could be a boost to markets if companies show profitability. Markets: The S&P 500 closed at a new all-time high at 4019.87 and is now in rare air with no overhead resistance. However, volume was extremely low, with only 2,169,587,712, probably due to a three-day weekend. So, today’s trading action is vital in determining if a new uptrend is potentially now in place. A follow-through day on the above-average volume would solidify a new uptrend. Potential support will remain at the 3981.04 level if selling does come in 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, RJ Partner, DJWMG Windsor Wealth Planners & Strategist Futures trading is speculative, leveraged, and involves substantial risks.… Read More
Headline News: U.S. stock futures are lower after a spike in bond yields has investors fearful of future inflation. The 10 year Treasury spiked up six basis points to a yield of 1.77%, the highest level in 14 months. Encouraging news on vaccine rollouts and expected infrastructure spending raised economic recovery expectations. The prospect of faster growth along with low corporate borrowing costs could continue to push markets higher with a Fed that is currently dovish. Markets: The S&P 500 tested and failed at the 3981.04 resistance and broke but recovered the 3955.31 support level. The wide-ranging day came with below-average volume of only 2,372,314,880, and the RSI was flat, closing at 58.59. The days trading was inside Friday’s trading range, which means the index could be forming a new base. If so, a few more days of sideways trading would be constructive after such a large rally of the 3/25/2021 low of 3853.50. Potential support will remain at 3955.31, and possibly resistance will remain at 3981.04. 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… Read More
Headline News: The S&P futures are lower after a major hedge fund defaulted on margin calls. The news has created fears that U.S. lenders could also be in jeopardy of default on similar positions. Also, the news could have large institutions selling positions early to avoid potential losses in the future if the selling continues. The selling appears to have also hit U.S media stocks and Chinese tech companies. Markets: The S&P 500 closed at a new all-time high of 3974.54 on Friday. However, the move came on tame volume of just 2,600,602,880, just slightly above average. The RSI index did move much higher in support of the move closing at 59.09. So, the index needs a follow-through day soon on heavy volume to proclaim a new uptrend. A pullback to potential support today at 3955.31 would be expected and possibly set up a move to a new all-time high soon. 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 involves risk, including the loss of principal,… Read More
Headline News: Wall Street is set for a higher open today as investors were bullish on hopes of the fastest economic recovery since 1984. The Federal Reserve announced that banks could resume stock buybacks and raise dividends by the end of June. The news was seen as bullish because the restrictions were put in place due to the COVID-19 pandemic. Later today, the U.S. Personal income and outlays report will be released along with the U.S. Consumer Sentiment. Both reports could potentially be bullish on the growth of the U.S. economy. Markets: The S&P 500 traded below the 50-day moving average at 3870.52 but rallied to move back above two resistance levels. The recent selloff volume has been below average, and the RSI index held above the 50 level. We feel a rally could potentially be in the cards today as investors look to buy the dip. However, there will be strong resistance possible at the 3925.02 level that could be a problem. A close above resistance on above-average volume could be a sign the buyers are back in control. We are currently long-term bullish and short-term cautious. John N. Lilly III CPFA Accredited Portfolio Management Advisor℠ Accredited Asset Management… Read More
Headline News: U.S. stock futures are flat, and bond yields are lower to start the week. The 10- Treasury yield moved five basis points lower to 1.68% in pre-market trading, easing some higher inflation concerns. The tech-heavy Nasdaq looks set to open higher but is still 6% lower off the 2/12/21 record closing high. Investors will also be watching a speech by Federal Reserve Chairman Powell at 9:00 a.m, and he will appear before Congress on Tuesday and Wednesday regarding the CARES Act. Markets: The S&P 500 closed at 3913.10, flat for the day, and well below support at the 3928.65 level. The volume was massive, with 4,678,514,176 shares traded, which appears to be due to sector rotation out of high valuations technology stocks. The index traded down to 3886.75 and rallied, so we know that potential buyers exist at this level. The base we had been watching for is now gone, and the index now has a lot of work to do to, potentially, continue the recent uptrend. We will now move to a short-term cautious stance. We are currently long-term bullish and short-term cautious. John N. Lilly III CPFA Accredited Portfolio Management Advisor℠ Accredited Asset Management Specialist℠ Portfolio… Read More
