U.S. stock futures are set for a flat open to start the week after President Trump issued an executive order to support the economy with new stimulus. The order partly restored the unemployment benefits came after negotiations between the two parties broke down last week. Also, tensions between the U.S. and China are still ongoing and continue to weight on the markets. However, a better than expected earnings season and hopes of more stimulus have investors encouraged to about the health of the U.S economy.
The S&P 500 rallied for a fifth straight day and closed at 3351.28 on Friday, which was just above resistance at 33374.33. Volume has been average during the run-up and could be a sign that not all stocks are participating in the uptrend. The RSI index has also moved higher in support of the uptrend and closed at 68.90 just below the overbought zone of 70. We continue to believe the new uptrend will possibly continue, but we are now cautious and looking for some potential profit-taking to come in soon. If so, we feel the selling will be short-lived and present a new 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
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.