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Thursday, July 26, 2018 8:06:09 AM
DP Alert: Stock Prices Spike on US/EU Trade Success
By: Erin Swenlin | July 25, 2018
New trade deals were announced regarding US-EU tariffs and that seems to have given the market an adrenaline shot. However, on the flip side, Facebook's earnings report miss is wreaking havoc on after hours trading for the technology sector. It'll be interesting to see whether this follows through on tomorrow's trading.
SECTORS
Each S&P 500 Index component stock is assigned to one, and only one, of 10 major sectors. This is a snapshot of the Intermediate-Term and Long-Term Trend Model signal status for those sectors.
As noted, the Financial SPDR (XLF) logged a new IT Trend Model BUY signal. This sector has been lagging, but with interest rates rising and good earnings being reported around the sector, it is starting to regain strength. Next up is strong overhead resistance along the May top near $28.50.
STOCKS
IT Trend Model: BUY as of 5/11/2018
LT Trend Model: BUY as of 4/1/2016
SPY Daily Chart: The SPY nearly logged a new all-time high. Given the trade talk euphoria that is seeping in, I expect we will see it very soon. I had thought that we'd see price pullback this week, but that really hasn't happened. The technicals are strong so I'm expecting a breakout to all-time highs...I just wasn't expecting this week.
Climactic Market Indicators: We saw climactic readings in breadth and given the strong bullish white hollow candle, I would view those high breadth readings as a buying initiation.
Short-Term Market Indicators: With the strong finish today, the short-term indicators have turned up. They've been very twitchy and indecisive so I don't want to place too much emphasis on that.
Intermediate-Term Market Indicators: It appears the ITBM is going to avoid a negative crossover and the ITVM will manage a positive crossover very soon. We saw some deterioration on these indicators last week, but they do seem to be turning around.
Conclusion: The market has been experiencing split personality disorder with mid-caps and small-caps showing relative weakness with large-caps and now we have possible problems for the NDX tomorrow based on Facebook misses. Trade tensions easing will be positive for the market in general, but after hours trading is suggesting it won't be enough for the NDX to overcome the Facebook debacle.
>>> Read More…
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By: Erin Swenlin | July 25, 2018
New trade deals were announced regarding US-EU tariffs and that seems to have given the market an adrenaline shot. However, on the flip side, Facebook's earnings report miss is wreaking havoc on after hours trading for the technology sector. It'll be interesting to see whether this follows through on tomorrow's trading.
SECTORS
Each S&P 500 Index component stock is assigned to one, and only one, of 10 major sectors. This is a snapshot of the Intermediate-Term and Long-Term Trend Model signal status for those sectors.
As noted, the Financial SPDR (XLF) logged a new IT Trend Model BUY signal. This sector has been lagging, but with interest rates rising and good earnings being reported around the sector, it is starting to regain strength. Next up is strong overhead resistance along the May top near $28.50.
STOCKS
IT Trend Model: BUY as of 5/11/2018
LT Trend Model: BUY as of 4/1/2016
SPY Daily Chart: The SPY nearly logged a new all-time high. Given the trade talk euphoria that is seeping in, I expect we will see it very soon. I had thought that we'd see price pullback this week, but that really hasn't happened. The technicals are strong so I'm expecting a breakout to all-time highs...I just wasn't expecting this week.
Climactic Market Indicators: We saw climactic readings in breadth and given the strong bullish white hollow candle, I would view those high breadth readings as a buying initiation.
Short-Term Market Indicators: With the strong finish today, the short-term indicators have turned up. They've been very twitchy and indecisive so I don't want to place too much emphasis on that.
Intermediate-Term Market Indicators: It appears the ITBM is going to avoid a negative crossover and the ITVM will manage a positive crossover very soon. We saw some deterioration on these indicators last week, but they do seem to be turning around.
Conclusion: The market has been experiencing split personality disorder with mid-caps and small-caps showing relative weakness with large-caps and now we have possible problems for the NDX tomorrow based on Facebook misses. Trade tensions easing will be positive for the market in general, but after hours trading is suggesting it won't be enough for the NDX to overcome the Facebook debacle.
>>> Read More…
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Information posted to this board is not meant to suggest any specific action, but to point out the technical signs that can help our readers make their own specific decisions. Your Due Dilegence is a must!
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