S&P 500 OUTLOOK for FRI 5/25

Please check the outlook and forecast for tomorrow, Fri 5/25 below:

https://tradersai.blogspot.com/2018/05/s-500-outlook-for-fri-0525.html

S&P 500 testing the 2715-05 consolidation band AGAIN

https://tradersai.blogspot.com/2018/05/s-500-testing-2715-05-consolidation.html

Bulls relaxed in their territory - no bears in sight...yet!

S&P 500 Market Minutes for today, Mon 5/21:

MARKET ACTION TODAY - THE WHAT:

The S&P 500 index opened the trading week on a positive note, up 12.98 points - riding on the back of easing U.S. and China trade tensions. Led by Industrials and Telecommunication Services sectors, today’s gains were broad based with all the11 primary sectors closing with gains. Maintaining the optimism throughout the session and trading within a narrow range (2,725.70 - 2,739.19), the index closed the trading session up by 20.04 points at 2,733.01, gaining 0.74%.

MARKET ACTION TODAY - THE HOW AND WHY:

To reduce its trade deficits with the U.S., the Chinese government agreed to increase their purchases of American goods and services including agricultural and energy products. In return, the U.S. postponed the implementation of tariffs on Chinese goods valuing up to $150 billion. Benefiting from the easing of trade tensions between U.S. and China, Industrial stocks received a major boost, gaining 1.54% led by a 3.61% in Boeing Co.

Telecommunication Services and Technology sectors with Chinese clients were also amongst the top gainers of the day, up 1.49% and 0.84% respectively, which were further boosted after Micron Technology Inc., raised its profit and revenue guidance for the third quarter. Energy stocks also traded higher supported by high oil prices. The 10-year Treasury bond yield inched lower supporting the day’s gains, settling at 3.06% albeit staying above the psychologically important 3% mark. 

While today’s rally was broad based driven by easing trade concerns, stocks of Steel companies fell on the assumption that the previously announced steel import tariffs by the Trump administration will be put on hold or cancelled. Steel stocks had been rallying after the announcement of a 25% tariff on steel imports. 

S&P 500 OUTLOOK AND TRADING PLAN FOR TOMORROW - TUE, 05/22:

IMPORTANT NOTICES & DISCLAIMERS – READ CAREFULLY:

(i) This article contains personal opinions of the author and is NOT representative of any organization(s) he may be affiliated with. This article is solely intended for informational and educational purposes only. It is NOT any specific advice or recommendation or solicitation to purchase or sell or cause any transaction in any specific investment instruments at any specific price levels, but it is a generic analysis of the instruments mentioned.
(ii) Do NOT make your financial investment or trading decisions based on this article; anyone doing so shall do so solely at their own risk. The author will NOT be responsible for any losses or loss of potential gains arising from any investments/trades made based on the opinions, forecasts or other information contained in this article.
(iii) Risk Warning: Investing, trading in S&P 500 Index – spot, futures, or options or in any other synthetic form – or its component stocks carries inherent risk of loss. Trading in leveraged instruments such as futures carries much higher risk of significant losses and you may lose more than you invested in them. Carefully consider your individual financial situation and investment objectives before investing in any financial instruments. If you are not a professional trader, consult a professional investment advisor before making your investment decisions.
(iv) Past performance: This article may contain references to past performance of hypothetical trades or past forecasts, which should NOT be taken as any representation or promise or guarantee of potential future profits. Past performance is not indicative of future performance.
(v) The author makes no representations whatsoever and assumes no responsibility as to the suitability, accuracy, completeness or validity of the information or the forecasts provided.
(vi) All opinions expressed herein are subject to change at any time, without any notice to anyone.

 

 

S&P 500 TRADING PLAN FOR MON, 05/21

Bears putting up a decent fight! Bulls still staying strong!

Medium-to-long term investors:

Those who followed the medium term models would still be holding their longs into Monday (survived, again, the take-profit stop at 2708 by just about one point). If long, keep your take-profit stop still at 2708 and be happy with the profit if it hits - if it does not hit, be happy knowing that it is accumulating more profits. Those who are not holding any positions might want to follow the caution already published: “...wait for a better re-entry opportunity instead of trying to chase the long trade or a prematurely short trade”. 
While today's - and, this week's - market action is a bit weak on the bulls' part, it does not damage the strong bullishness which unfolded last week. Hence, medium-term models currently indicate no short bias until all the way below 2680. Medium term indications are for a long bias above 2635, flat below 2610, and a short bias below 2680. 

Aggressive, short term, medium-frequency, or professional traders:

Those who followed the aggressive short term models would have gone short below 2720. By the very design, as a short term or medium-frequency trader, you would not be carrying any positions into the weekend, so you would have booked decent profits already and should be flat into the Monday's session. If not, re-consider how you think of your trading style.
Short term models indicate going short below 2720, flat between 2720 and 2735, and long above 2735. For short positions, use the 2705-2700 range as a pivot range to take profits and/or re-establish shorts. Exercise caution about potential sudden spikes up while short within 2700-2680 - use tight stops and small profit-targets within this range. 

Market Action, Fri, 05/18

S&P 500 Outlook for Mon, 05/21

IMPORTANT NOTICES & DISCLAIMERS – READ CAREFULLY:

(i) This article contains personal opinions of the author and is NOT representative of any organization(s) he may be affiliated with. This article is solely intended for informational and educational purposes only. It is NOT any specific advice or recommendation or solicitation to purchase or sell or cause any transaction in any specific investment instruments at any specific price levels, but it is a generic analysis of the instruments mentioned.
(ii) Do NOT make your financial investment or trading decisions based on this article; anyone doing so shall do so solely at their own risk. The author will NOT be responsible for any losses or loss of potential gains arising from any investments/trades made based on the opinions, forecasts or other information contained in this article.
(iii) Risk Warning: Investing, trading in S&P 500 Index – spot, futures, or options or in any other synthetic form – or its component stocks carries inherent risk of loss. Trading in leveraged instruments such as futures carries much higher risk of significant losses and you may lose more than you invested in them. Carefully consider your individual financial situation and investment objectives before investing in any financial instruments. If you are not a professional trader, consult a professional investment advisor before making your investment decisions.
(iv) Past performance: This article may contain references to past performance of hypothetical trades or past forecasts, which should NOT be taken as any representation or promise or guarantee of potential future profits. Past performance is not indicative of future performance.
(v) The author makes no representations whatsoever and assumes no responsibility as to the suitability, accuracy, completeness or validity of the information or the forecasts provided.
(vi) All opinions expressed herein are subject to change at any time, without any notice to anyone.

S&P 500 MARKET ACTION - FRI, 05/18

Bears putting up a decent fight! Bulls still staying strong!

The S&P 500 index traded lower during Friday’s session as a slight pullback in Treasury yields and oil prices weighed down on Financials and Energy sectors, overshadowing gains in Industrial and Health-care sectors. Conflicting news headlines around U.S. – China trade talks further weighed down on investor sentiments. Holding on to the 2,710 support level (at 100 DMA) for the third day in a row and bouncing off it after reaching the day’s low at 2,709.18, the index ended a choppy week at 2,712.97 down 7.16%, losing 0.26% and with a weekly loss of 0.54%.

Disappointing earnings guidance reported by Campbell Soup Co., Nordstrom Inc. and Applied Materials Inc. at the tail-end of this earnings season weighed down on Semiconductors and Consumer Discretionary sectors as they continue to remain under pressure due to rising input costs. The agricultural and construction equipment maker, Deere & Co. gained 5.75% after reporting an expected growth of 35% in equipment sales for the third quarter, lifting the broader Industrials sector by 0.55% to be the best performer in the index.

Energy stocks shed gains (losing 0.81%) as oil retreated after reaching the $80 price mark for the first time since November 2014. Financial stocks also shed some of their last week’s gains as the 10-year Treasury yields inched lower to settle at 3.059% after reaching the seven-year high of 3.11% in Thursday trading session.

Chinese officials denied Thursday’s news reported by several news outlets that China has offered to reduce its trade deficit with the U.S. by up to $200 billion. Meanwhile, Congress officials planned to push forward a bill that could block deals between American and Chinese companies that pose a risk to national security. Gains in the equity markets remained capped as investors dealt with the conflicting news headlines around latest developments in the U.S. – China trade talks.

S&P 500 Outlook for MON, 05/21

TRADING PLAN FOR MON, 05/21