Daily Commentary
Headline News:
U.S. stock futures are higher to start the week despite lawmakers failing to agree on a coronavirus relief bill over the weekend. Also, Secretary of State Pompeo announced actions against a “broad array” fo Chinese-owned software deemed a threat in the coming days. President Trump did allow Microsoft (MSFT) and others to continue talks to acquire Chinese owned Tiktok, and continued positive Q2 earnings results have investors in a bullish mood.
Markets:
The S&P 500 traded below support at 3233.13 early but rallied higher late in the day to close at 3271.12. The move came with heavy volume, and the index is now close to potential resistance, and new possible breakout, at 3279.23. The RSI index is still in a trading range after closing at 61.03. So, we were very encouraged by the trading action last week! Markets look set to test and possible breakout of the trading range high at 3279.23 sometime this week.
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 by J. Welles Wilder, is a momentum oscillator that measures the speed and changes of price movements.
The S&P 500 is an unmanaged index of 500 widely held stocks that is generally considered representative of the U.S stock market. Past performance may not be indicative of future results. Keep in mind that individuals cannot invest directly in any index, and index performance does not include transaction costs or other fees, which will affect actual investment performance. Individual investors’ results will vary. Opinions expressed are those of the author John N. Lilly III, and not necessarily those of Raymond James. “There is no guarantee that these statements, opinions, or forecast provided herein will prove to be correct. “The information contained was received from sources believed to be reliable, but accuracy is not guaranteed. Investing always involves risk, and you may incur a profit or loss. No investment strategy can guarantee success. The charts and/or tables presented herein are for illustrative purposes only and should not be considered as the sole basis for your investment decision. International investing involves special risks, including currency fluctuations, different financial accounting standards, and possible political and economic volatility. Investing in emerging markets can be riskier than investing in well-established foreign markets.
This is not a recommendation to buy or sell any company’s stock mentioned above.
.