Bears Extend Winning Streak to 3-Straight

U.S. markets were choppy during the first half of Wednesday’s action before showing strength after a tweet from President Trump that confirmed China’s Vice Premier is on the way to the U.S. to make a deal. Of course, the devil will be in the details if a deal is announced on Friday, or if there will be a delay in negotiations with another round of fresh tariffs.

The slight momentum faded into the closing bell as the blue-chips were the only index that settled higher. Volatility simmered slightly but edged up after trading to a lower high than the previous session.

The Dow rose 2 points, or 0.01%, while tapping a late day high of 26,118 ahead of the closing bell. Lower resistance at 26,000-26,250 and the 50-day moving average was cleared with both holding and a close above the latter being a more bullish development.

The S&P 500 slipped 0.2% despite reaching an intraday peak of 2,897. Prior and lower resistance at 2,900-2,925 was challenged but held with a move above the latter signaling a return of strength.

The Nasdaq gave back 0.3% after making an intraday push to 8,004. Near-term and lower resistance at 8,000-8,050 on the 2nd-straight close below the former.

The Russell 2000 traded in a 13-point range with the low tapping 1,574. Upper support at 1,580-1,565 was breached for the 2nd-straight session and failed to hold with a close below the latter and the 50/200-day moving averages being a continuing bearish signal.

Healthcare and Consumer Discretionary paced sector winners after rising 0.2% and 0.03%, respectively.

Utilities led sector losers after falling 1.4%. Financials and Communication Services dipped 0.2%.


LendingClub (LC) upgraded to Outperform from Neutral at Wedbush
Mosaic (MOS) upgraded to Overweight from Neutral at JPMorgan
Qorvo (QRVO) upgraded to Buy from hold at Canaccord

Fortive (FTV) downgraded to Equal Weight from Overweight at Morgan Stanley
Inogen (INGN) downgraded to Neutral from Overweight at JPMorgan
Mylan (MYLWealth Strength IndexAAPL is Extremely Up and trending Up) downgraded to Market Perform from Outperform at Wells Fargo

Before the open (EST):
​Avaya Holdings (AVYA), BG Staffing (BGSF), Choice Hotels (CHH), Duke Energy (DUK), Gogo (GOGO), Harsco (HSC), International Seaways (INSW), LB Foster (FSTR), Malibu Boats (MBUU), National Vision Holdings (EYE), New Age Beverages (NBEV), (OSTK), Prestige Brands (PBH), Radnet (RDNT), Syneos Health (SYNH), Tapestry (TPR), Trade Desk (TTD), Vista Outdoor (VSTO), World Acceptance (WRLD)

After the close(EST):
​Air Lease (AL), Blue Bird (BLBD), Cumulus Media (CMLS), Dropbox (DBX), Equifax (EFX), Fly Leasing (FLY), GoPro (GPRO), HyreCar (HYRE), Joint (JYNT), LTC Properties (LTC), Mesa Air Group (MESA), Nutrien (NTR), Perceptron (PRCP), Remark Holdings (MARK), Sonos (SONO), TiVo (TIVO), Vale (VALE), Yelp (YELP), Zovio (ZOV)

Thursday’s economic reports (EST): 
​International Trade – 8:30am
Jobless Claims – 8:30am
PPI-FD – 8:30am
Wholesale Trade – 10:00am

Gold closed at $1,281.40 an ounce, down $4.20
Silver settled at $14.86 an ounce, down $0.07
Copper finished at $2.77 a pound, down $0.01
Crude Oil was at $61.40 a barrel, down $1.30
Bitcoin Investment Trust (GBTC) ended at $7.84 up $0.03

I hope this helps you prepare for the trading day. Make it a great one!

   Todd Mitchell