Headline News: Wall Street is set for a lower open as bond yields moved to a 14-month high. The U.S. 10-year Treasury traded at 1.75% in pre-market trading, causing fears of a rapid inflation increase. However, the Federal Reserve pledged to accept higher inflation while keeping monetary policy accommodative through 2023. Inflation is expected to pass the Fed’s target of 2.0% this year, yet Chairman Powell thinks the increase will be temporary that will not change future policy Markets: The S&P 500 closed at another all-time at 3974.12 after a wide-ranging day on Wednesday. The index moved below support at 3950.43 only to rally back up to a high of 3983.87 which is now potential resistance. There have now been two days of base-forming, and we feel a few more basing days will be needed before the uptrend can potentially continue. 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 loss of principal, and futures trading could present additional risk based on underlying… Read More
Headline News: U.S. stock futures were lower as investors wait for the outcome of the Federal Reserve meeting later today. The Fed will be releasing new forecasts on interest rates and economic growth. Also, the 10-year Treasury yield rose to a 13-month high at 1.67%, while the 30-year rate moved up to 2.42%. The uptick in the rates has traders moving into value stocks and out of growth stocks this morning. Markets: The S&P 500 rallied to a new intraday all-time high at 3981.04 but sold off late to close lower at 3962.71. We don’t feel this is a market top due to our indicators showing good internal strength. However, we still think a base with possibly some more selling down to 3928.65 could take place. The current uptrend is still in place and should continue after a brief pause at these levels. 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 loss of principal, and futures trading could present additional risk based… Read More
Headline News: U.S. stock futures were little changed as investors waited for key economic data releases and the start of the two-day Federal Reserve meeting. The U.S. retail sales report could show a strong consumer when released later today. Also, the industrial production, along with the U.S. Redbook, will be reported and could also give clues to the health of the U.S. economy. The closely watched 10- Treasury yield was lower at 1.59% in pre-market trading. Markets: The S&P 500 closed at a new all-time high of 3968.94 after moving past the last line of resistance on Monday. The index is now in rare air, where there is currently no overhead resistance. The trading came with a small pick up in volume with 2,382,335,232 shares traded. Potential support could now come in at 3960.27 and then possibly 3950.43. Volume for advancing issues was only 61%, so it appears a sense of complacency has potentially set in. We would still like to see a more prominent base form before a continuation of the 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… Read More
Headline News: U.S. stock futures are mixed, and the 10-year Treasury is lower to start a new week. Investors will be watching interest rates closely after Fed Reserve officials stated the recent rise had not caused a policy change. The central bank will hold meetings on Tuesday and Wednesday, and Chairman Powell is expected to strike a dovish tone for future policy. Markets: The S&P 500 closed at 3943.34, just under potential resistance at 3950.43. The index appears to be starting a base that we feel could lead to another new all-time high. Volume was again lower, with only 2,263,134,720 shares traded on Friday. Potential support could now come in at 3928.65 and then 3914.50. We believe those levels could hold, forming a new base and a pause in the 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 loss of principal, and futures trading could present additional risk based on underlying commodities investments. The Relative Strength Index (RSI), developed… Read More
Headline News: Wall Street is set for a higher open after U.S. bond yields moved to a one-week low in pre-market trading. The 10-year Treasury was trading at 1.5% easing concerns of higher inflation. Congress passed the $1.9 trillion COVID-19 relief bill, which is expected to improve economic growth. Also, the number of Americans filing for unemployment benefits report came in lower than expected. The initial claims were 712,000 down from 754,00 the prior week, showing an improving labor market. Markets: The S&P 500 traded above resistance at 3914.50 but sold off late to close at higher on the day 3898.81. The recent rally has come with lower volume each day, so we still believe a pause with a base is needed. The RSI index did move higher in support of the up move and closed at 54.89. The S&P 500 did break the trend of lower highs which is a bullish signal. We will now move to a short-term bullish stance. The index now has potential resistance at 3914.50 and then 3928.65, and it could have possible support at 3885.76 and then 3870.90. The 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 the February consumer price index showed inflation not increasing rapidly. The data showed a February increase of 0.4% and year-over-year growth of 1.7%, both inline with expectations. The news appears to ease concerns over rising interest rates and rising consumer prices. The closely watched 10-year Treasury yield was lower at a rate of 1.56% in early trading, and that has traders in a bullish mood. Markets: The S&P 500 raced past resistance at 3870.90, sold off from the high late in the day, and closed higher at 3875.44. Volume was above average with 2,770,601,472 shares traded, and RSI moved past the middle line closing at 52.68. The index has now formed a V-shaped pattern off the 3/4/2021 low, and a base could be needed to consolidate recent gains. Potential resistance could now come in at 3914.50 if the current rally continues 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. Investing always involves risk, including the loss of principal,… Read More
Headline News: U.S. stock futures are higher after a pullback in bond yields to start the day. The U.S. 10 year Treasury bond yield moved to 1.54% after achieving a 12 month high of 1.613% on Monday. The rate increase came as investors began to price in a faster economic recovery and potentially higher inflation. However, today the high valuation stocks that have been beaten down are rebounding in pre-market trading and has the index set for another potential wide rang trading day. Markets: The S&P 500 raced past resistance at 3870.90 only to selloff and closed lower at 3821.35. The close was below the critical 50-day moving average, which is now at 3821.35. The trading came with much lower volume, with only 2,978,129,920 shares traded. So, the index is now in jeopardy of testing potential new support at 3789.54. A further concern is that the index has been posting a series of lower highs on each rally, which typically means sellers still control the index. We will remain short-term cautious for now. 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… Read More
Headline News: U.S. stock futures are lower despite the passage of President Biden’s $1.9 trillion Covid relief bill. The bill provides another round of stimulus checks and an extension to the unemployment benefits. The 10-year Treasury yield moved back up to 1.6%, and investors fear that could potentially cause more selling in high valuation stocks. Markets: The S&P 500 had another wide-ranging with massive volume to close out the week. The index tested the 3/4/21 low 3726.34 and then rallied back above the resistance of 3830.41 to close higher at 3841.94. The volume came in at 3,302,966,784, and RSI moved higher in support to close at 49.16. So, potential support is now back at 3830.410 and the 50-day moving average at 3821.99. We expect some early selling to come in early today, which is normal, but the current support levels need to hold to keep the sellers on the sidelines. 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: U.S. stock futures are surging to start the day after a stronger-than-expected jobs report was released. Also, a continued drop in the COVID-19 case has investors encouraged about the U.S. economy. Nonfarm payrolls increased by 379,000 last month, added by a significant increase in restaurant hirings. However, the yield on the 10-year Treasury moved above 1.6% after the report. Federal Reserve Chairman commented that the move in the rates “has caught his attention”, but he did not give any guidance on how the central bank might react. Markets: The S&P 500 closed well below the 50-day moving average and old support at the 2/26/2012 low. The trading came with massive volume with 3,360,170,240 shares traded, and RSI also dove lower in support of the selling to close at 40.64. New potential support could now come in at 3694.12, and we feel that level could possibly be tested soon. The index could see a snap-back rally today, but any rally could potentially be met with more buying to close out a tough week for markets. 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… Read More
Headline News: U.S. stock futures are flat after better than expected weekly jobless claims by the Labor Department. First-time filings for unemployment insurance totaled 745,00 for the week ending February 27. That was a drop from 7500,000 the previous week. Investors will also be watching a speech on the economy by Federal Reserve Chairman Jerome Powell later today. Also, pre-market, the U.S. 10-year Treasury yield was 1.48%, well below the 1.6% yield achieved on 2/25/2021. Markets: The S&P 500 closed at 3819.72, which was below support at 3830.41. The selling did intensify during the day once that level was breached. So, the index is now just above the critical 50-day moving average at 3817.87. Also adding to the concerns, RSI 45.59 again closed below the mid-line in support of the selling. Volume was above average, with 2,702,671,872 shares traded. The index needs to close above the 50-day average, or we feel a test of the 2/26/2021 low at 3789.54 could potentially be immanent. 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… Read More
