U.S. stock futures are higher this morning after robust earnings reports and a rally in global markets. Zoom Video (ZM) surged 31% in pre-market trading after a strong earnings report and upbeat forward guidance. Tesla (TSLA) was also higher in early trading after announcing the company plans to sell up to $5 billion in stock. Factory orders in China grew last month, Eurozone manufacturing also grew last month, and Germany’s output grew at its fastest pace since February.
The S&P 500 sold off after briefly trading at a new all-time high to close at 3500.31. There was a substantial uptick in volume, with 2,538,152,448.00 shares traded after only 2,012,912,640 traded on Monday. The RSI index remains in the overbought level, closing higher at 76.93. If the index can form another base at these levels, we feel there is a potential for another new uptrend. However, we remain cautious that sellers may come in, take some profits, and potentially move the index lower.
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.