Bulls Rebound, Get Weekly Win 01/06/2019

U.S. markets rebounded on Friday following a strong jobs number and optimism surrounding the scheduled trade talks between the U.S. and China. Talks will begin on Monday.

Soothing comments from the Fed and news that the U.S. House passed a spending bill package in an effort to end the partial government showdown also helped sentiment.

The Nasdaq zoomed 4.3% following the intraday push to 6,760. Fresh resistance at 6,750-6,800 held with continued closes above the latter being a bullish signal for a possible run towards 7,000 and the 50-day moving average.

The Russell 2000 jumped 3.8% after reaching a peak of 1,383. Lower resistance at 1,380-1,400 was cleared and held with a close above the latter signaling additional strength towards 1,425.

The Russell 2000 was up 3.3% for the week while the Nasdaq rose 2.4%.

The Dow rallied 3.3% following the midday run to 23,518. Prior and lower resistance at 23,400-23,600 with continued closes above the latter getting 23,800-24,000 back in play.

The S&P 500 soared 3.4% after tapping a session high of 2,538. Lower resistance 2,525-2,550 was cleared and held with a move above the latter being a continuing bullish development.

For the week, the S&P was up 1.9% while the blue-chips gained 1.5%.

Technology and Communication Services were up 4.4% and 4.3% to led sector strength. Materials and Industrials rose 3.9% and 3.8%, respectively.

There was no sector laggards.

For the week, Energy and Communication Services rose 4.9% and 4.1%. Real Estate was down 0.7% while Utilities slipped 0.1% and were the only sectors in the red.

Shutterfly (SFLY) upgraded to Overweight from Sector Weight at KeyBanc
Honeywell (HON) upgraded to Outperform from Sector Perform at RBC Capital
Etsy (ETSY) upgraded to Buy from Neutral at Goldman Sachs

Skyworks (SWKSWealth Strength IndexSWKS is Extremely Up and trending Up) downgraded to Neutral from Buy at Nomura Instinet
eBay (EBAYWealth Strength IndexEBAY is Extremely Flat and trending Up) downgraded to Neutral from Buy at Goldman Sachs
Chesapeake (CHK) downgraded to Underperform from Neutral at BofA/Merrill

Monday Before the Open (EST):
​Commercial Metals (CMC)

Monday After the Close (EST): None

Monday’s Economic Reports (EST):
Factory Orders – 10:00am
ISM Non-Manufacturing Index – 10:00am
TD Ameritrade IMX – 12:30pm

Gold closed at $1,285.80 an ounce, down $9.00
Silver settled at $15.79 an ounce, down $0.01
Copper finished at $2.64 a pound, up $0.07
Crude Oil is at $48.31 a barrel, up $1.22
Bitcoin Investment Trust (GBTC) ended at $4.53,
up $0.01

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

Todd Mitchell