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:
• MAR, HLT, RCL, NCLH
• 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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