Bulls Extend Win Streak to 8-Straight Weeks

U.S. markets continued their strong start for the year following Friday’s rally that extend the overall winning streak to 8-straight weeks. Ongoing progress regarding trade talks with China help fuel the breakout to prior November highs and the negotiations now moving to Washington D.C. next week.

​President Trump said the trade talks with China are going very well while adding that the U.S. is a lot closer than we ever were to having a real trade deal with China. Trump also said he expects trade between the U.S. and the U.K. will also be significantly increasing.

The Dow zoomed 1.7% after closing a half-point of the session high of 25,883. Fresh and lower resistance from late November at 25,800-26,000 was cleared and held with a move above the latter getting 26,250-26,500 in play.

The S&P 500 soared 1.1% following the late day run to 2,775. Lower resistance from late November at 2,775-2,800 held into the closing bell with a move above the latter getting 2,825-2,850 in the mix.

For the week, the Dow gained 3.1% and the S&P was higher by 2.5%.

The Russell 2000 jumped 1.6% after testing a high of 1,570. Fresh and lower resistance at 1,570-1,580 held into the close by a point with additional hurdles at 1,590-1,600 and the 200-day moving average.

The Nasdaq advanced 0.6% following the late session push to 7,477. Major resistance at 7,450 and the 200-day moving average was cleared and held to set up a possible run towards 7,525-7,600 on continued momentum.

Tech was up 2.4% for the week while the small-caps rocketed 4.2% higher.

Financials led sector strength after surging 2.1%. Energy and Healthcare rose 1.6% and 1.5%, respectively. There were no sector laggards.

For the week, Energy surged 2.9% while Industrial and Technology added 2.4% and 2.2%, respectively. There no were no sector laggards

The market is closed on Monday.

ANALYST UPGRADES/DOWNGRADES
AIG (AIG) upgraded to Buy from Neutral at Compass Point
Bloomin’ Brands (BLMN) upgraded to Outperform from Market Perform at William Blair
Workday (WDAY) upgraded to Outperform from Market Perform at Cowen

Ball (BLL) downgraded to Neutral from Buy at UBS
Coca-Cola (KO) downgraded to Neutral from Buy at Citi
General Dynamics (GD) downgraded to Neutral from Outperform at Credit Suisse

EARNINGS
Tuesday Before the Open (EST):
Advance Auto Parts (AAP), Cooper Tire & Rubber (CTB), Ecolab (ECO), Genuine Parts (GPC), Himax Technologies (HLX), Leidos Holdings (LDOS), Medtronic (MDT), Nobel Energy (NBL), Safe Bulkers (SB), Terex (TEX), Walmart (WMT),)

Tuesday After the Close (EST):
​American Water Works (AWK), Cadence Design Systems (CDNS), Devon Energy (DVN), Faro Technologies (FARO), Haverty Furniture (HVT), Herbalife Nutrition (HLF), Interface (TILE), La-Z-Boy (LZB), OneSpan (OSPN), ShotSpotter (SSTI), Texas Roadhouse (TXRH), Verisk Analytics (VRSKWealth Strength IndexVRSK is Moderately Flat and trending Down)

UPCOMING ECONOMIC NEWS
Tuesday’s Economic Reports (EST):
Housing Market Index – 10:00am

​METALS / OIL
Gold closed at $1,322.10 an ounce, up $8.20
Silver settled at $15.74 an ounce, up $0.21
Copper finished at $2.79 a pound, up $0.02
Crude Oil is at $55.79 a barrel, up $1.28
Bitcoin Investment Trust (GBTC) ended at $4.19, up $0.11

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

   Todd Mitchell