Market Action Summary: 2/25/19


S&P 500 Overview: Will 2800 Prove Resistance?

  • Key level from last October, November, December.
  • Index is furthest from 50-day MA greatest since 1/26/18.
  • Good news of China calm priced in — for now.
  • Need signal before looking to get short.
  • Likely better to focus on individual sectors/stocks over broad index.

Don’t Forget About IPOs

  • Lyft coming to market by early April, Pinterest possible in early June
  • Peleton just hired JPM, GS.
  • Do you have ClickIPO?

Powell in the Senate Tomorrow

  • Focus on balance-sheet reduction (hawkish) / maintenance (dovish).
  • Gold (@GC), Silver (@SI) in focus.
  • GDX, SLV, NEM, WPM potential equities to watch.
  • Check out the gold / silver ratio chart of the week.

New Leaders and Narratives Emerging

  • Hotels & leisure outperform on signs of pricing power:
  • Chinese Internet stocks still far from old levels
  • Also, new China techs like TME, IQ, HUYA, CLPS, BILI have emerged.
  • Cybersecurity quietly running: FTNT, ANET, PANW
  • ZNGA, HUYA strong as ATVI, EA, TTWO struggle.
  • Turnarounds galore: GRMN, SNAP, GE, SYF, COTY, HBI, ALB, XRX

Don’s Watch List

  • Kohl’s (KSS) potential value play
  • Celanese (CE)
  • Best Buy (BBY) potential turnaround story
  • Comerica (CMA)
  • Smuckers (SJM) potentially bottoming

Russell’s Watch List

  • TEVA struggling with debt, drug-price negativity.
  • Japanese yen @JY bearish triangle.
  • @DX two bearish outside days this month as Powell spikes the punch bowl.
  • General Motors (GM) drifting higher. Is June high over $44 in play as Barra cleans house?
  • Salesforce (CRM) potential meltup into March 4 earnings.
  • Will Facebook (FB) run toward July gap down?
  • Keep watching Brazil for pension news.
  • Criteo (CRTO) potential growth-stock turnaround.

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David Russell is Global Head of Market Strategy at TradeStation. 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.