Shortened Trade Week Turns Positive For Second Straight Session
After snapping the downtrend we saw last week which rolled onto Monday, U.S. stock indices rebounded on Tuesday and added to those gains throughout Wednesday. Omicron variant concern and uncertainty continue to influence market sentiment while the latest upbeat economic reports have offered some support. Volatility remains a concern as we head into the holiday season and end of the year. Markets will be closed on Friday in observance of the Christmas Holiday. Looking further ahead, inflation will remain a touchstone topic to dictate and influence market direction and sentiment in 2022 as the Fed expects to continue combatting the current inflation trajectory. Oil and gold traded higher today while the dollar dipped. On Thursday, look out for the regular weekly unemployment report as well as monthly home sales, personal income, and year-over-year core inflation. Next week, economic reports look to remain light during another shortened trade week.
We’re watching the vital support levels in the SPY, which are presently at $460 and then $455. We expect the market to continue the rebound till the end of December. Omicron virus and latest economic reports, specifically those further illuminating inflation status, can impact the next move in the market. NKE, MU, GIS, KMX are key earnings announcements this week that can potentially influence the market direction. Globally, European markets closed higher while Asian markets traded to mixed results. 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 Broadcom LTD (AVGO). AVGO is showing a steady vector in our Stock Forecast Toolbox’s 10-day forecast.
The symbol is trading at $646.24 with a vector of +1.03% at the time of publication.
10-Day Prediction data is 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 have a position in the featured symbol, avgo. Our featured symbol is part of your free subscription service. It is 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.
Oil
West Texas Intermediate for Crude Oil delivery (CL.1) is priced at $72.92 per barrel, up 2.53% at the time of publication.
Looking at USO, a crude oil tracker, our 10-day prediction model shows mixed signals. The fund is trading at $51.44 at the time of publication. Prediction data is uploaded after the market close at 6 p.m., CST. Today’s data is based on market signals from the previous trading session.
Gold
The price for the Gold Continuous Contract (GC00) is up 0.94% at $1805.5 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 $167 at the time of publication. Vector signals show +0.28% for today. Prediction data is uploaded after the market close at 6 p.m., CST. Today’s data is based on market signals from the previous trading session.
Treasuries
The yield on the 10-year Treasury note is down, at 1.457% at the time of publication.
The yield on the 30-year Treasury note is down, at 1.854% 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 mixed signals in our 10-day prediction window. Prediction data is uploaded after the market close at 6 p.m., CST. Today’s data is based on market signals from the previous trading session.
Volatility
The CBOE Volatility Index (^VIX) is $20.31 at the time of publication, and our 10-day prediction window shows mixed signals. Prediction data is uploaded after the market close at 6 p.m., CST. Today’s data is based on market signals from the previous trading session.
