Dow Nears Intraday Record, Fed Chairman Powell Provides Dovish Testimony
Dow Jones nearing 32,000 record territory
On the second day of Fed Chair Jerome Powell’s testimony, major U.S. indices impressively booked gains with the Dow Jones nearing 32,000 record territory. Powell’s dovish sentiment eased market concern, erasing early week losses as uncertainty regarding economic stability loomed over the market. The Fed Chair indicated bond yields were rising at a proper rate for the correct reasons which eased additional concern.
Johnson & Johnson vaccine has no unexpected safety concerns or setbacks
On the vaccine front, rollout continues to progress with additional vaccines to be administered in the weeks to come while Johnson & Johnson reported their one-dose vaccine had no unexpected safety concerns or setbacks. Oil futures continue to rise while both the dollar and gold saw muted action today.
Broadcom, Target, Zoom, and Costco earnings next week
On Friday, key January economic data will release including Personal Income, Consumer Spending, and Core Inflation; February employment data is due next week. Likewise, next week’s earnings will remain light with Broadcom, Target, Zoom, and Costco headlining key corporate releases. Globally, Asian markets traded significantly lower while European benchmarks closed in the green.
Until an additional breakout is maintained, our models are projecting SPY to trade in the range of $364-$390. We continue to see a strong rotation from growth to value stocks and it is our opinion that the market could be prone to further corrections. The next level of support is set at the 50-day moving average, $364-$370. We encourage all market commentary readers to maintain clearly defined stop-levels for all positions. For reference, the SPY Seasonal Chart is shown below:
For reference, the S&P 10-Day Forecast is shown below:
Using the “^GSPC” symbol to analyze the S&P 500 our 10-day prediction window shows a near-term mixed outlook. Prediction data is uploaded after the market closes at 6 p.m. CST. Today’s data is based on market signals from the previous trading session.
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Thursday Morning Featured Symbol
Our featured symbol for Thursday is Kimco Realty Corporation (KIM). KIM is showing a steady vector in our Stock Forecast Toolbox’s 10-day forecast.
The stock is trading at $19.15 with a vector of +1.42% at the time of publication.
10-Day Prediction data uploaded after the market close at 6 p.m., CST. Today’s data is based on market signals from the previous trading session.
Note: The Vector column calculates the change of the Forecasted Average Price for the next trading session relative to the average of actual prices for the last trading session. The column shows the expected average price movement “Up or Down”, in percent. Trend traders should trade along the predicted direction of the Vector. The higher the value of the Vector the higher its momentum.
*Please note: At the time of publication Vlad Karpel does not have a position in the featured symbol, KIM. Our featured symbol is part of your free subscription service. Not included in any paid Tradespoon subscription service. Vlad Karpel only trades his money in paid subscription services. If you are a paid subscriber, please review your Premium Member Picks, ActiveTrader, or MonthlyTrader recommendations. If you are interested in receiving Vlad’s picks, please click here.
West Texas Intermediate for Crude Oil delivery (CL.1) priced at $63.45 per barrel, up 2.89% at the time of publication.
Looking at USO, a crude oil tracker, our 10-day prediction model shows positive signals. The fund is trading at $42.5 at the time of publication. Prediction data uploaded after the market close at 6 p.m., CST. Today’s data is based on market signals from the previous trading session.
The price for the Gold Continuous Contract (GC00) is down 0.10% at $1804.10 at the time of publication.
Using SPDR GOLD TRUST (GLD) as a tracker in our Stock Forecast Tool, the 10-day prediction window shows mixed signals. The gold proxy is trading at $169 at the time of publication. Vector signals show -0.29% for today. Prediction data uploaded after the market close at 6 p.m., CST. Today’s data is based on market signals from the previous trading session.
The yield on the 10-year Treasury note is up, at 1.382% at the time of publication.
The yield on the 30-year Treasury note is up, at 2.236% at the time of publication.
Using the iShares 20+ Year Treasury Bond ETF (TLT) as a proxy for bond prices in our Stock Forecast Tool, we see negative signals in our 10-day prediction window. Prediction data uploaded after the market close at 6 p.m., CST. Today’s data is based on market signals from the previous trading session.
The CBOE Volatility Index (^VIX) is $21.34 at the time of publication, and our 10-day prediction window shows mixed signals. Prediction data uploaded after the market close at 6 p.m., CST. Today’s data is based on market signals from the previous trading session