Market Action Summary: 10/1/18


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S&P 500 overview

  • Just finished best quarter since Q4 2013.
  • Uptrend steepening, somewhat like a year ago.
  • Safe-haven Japanese yen falling. Australia dollar, Turkish lira rising. Bonds under pressure.
  • Near-term range potential before payrolls, earnings. Watch 9/26 outside day.
  • Will 2910 be retested on @ES?

Calls & News of Note:

  • 9/24: Jamie Dimon of JPM: U.S. can keep growing at 3%.
  • 9/24: JP Morgan: Brent crude may hit $85-90 amid Iran sanctions, questions Saudi excess capacity.
  • 9/26: Fed raises GDP est +2.9% to → +3.1%. Meanwhile China & Asia slow, according to Asia Dev’t Bank & JPMorgan.
  • 9/27: JPMorgan bullish on AAPL amid increased value-add from large user base.
  • 10/1: CNBC: Seasonality favors strong Q4.

Don’s Watch List:

  • PepsiCo (PEP): EPS tomorrow morning.
  • Costco (COST): EPS Thursday afternoon. Support at $230, resistance at $245.
  • General Motors (GM): Monthly auto sales Wednesday morning.
  • Constellation Brands (STZ): Reports Thursday, with support at $207, resistance under $219.
  • Lennar (LEN): Homebuilder with earnings before the bell on Wednesday.

Russell’s Watch List:

  • Target (TGT) showing signs of bullish continuation. Good for options.
  • Whiting Petroleum (WLL), TransOcean (RIG) have breakout potential as oil climbs.
  • Exxon Mobil (XOM): Potential bullish continuation. Good for options.
  • Eli Lilly (LLY) challenging 2000 resistance around $108.
  • Johnson & Johnson (JNJ): Pullback following golden cross.
  • IWM: Russell where art thou? Rotation underway?
  • Basing/holding uptrend: SPLK, TRXC, TPR, WSM, CTAS
  • Careful of cannabis stocks losing volume: TLRY, CGC, CRON

From the Insights Blog:

Events to Watch:

  • 10/2: Jerome Powell speech
  • 10/3: Crude oil inventories
  • 10/5: Non-farm payrolls
  • 10/8: Quiet week w/Columbus Day, Brazilian elections.
  • 10/12: Earnings start with C, JPM, WFC.
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David Russell is VP of Market Intelligence at TradeStation Group. Drawing on nearly two decades of experience as a financial journalist and analyst, his background includes equities, emerging markets, fixed-income and derivatives. He previously worked at Bloomberg News, CNBC and E*TRADE Financial. Russell systematically reviews countless global financial headlines and indicators in search of broad tradable trends that present opportunities repeatedly over time. Customers can expect him to keep them appraised of sector leadership, relative strength and the big stories – especially those overlooked by other commentators. He’s also a big fan of generating leverage with options to limit capital at risk.