Market Insights

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S&P 500 Overview: Careful Near Top of Range

• Top of channel forming near 2800 after best week in 7 years.
• S&P 500 stochastic overbought, last 3% over 10DMA.
• Jumble of moving averages suggests a period of neutrality.
• Good news priced in, with few clear positives in near term.
• Amount of downside unclear. May not be a full retest. Watch for potential triangle with higher low above 2650.
• Now’s the time to focus back on individual stocks.

Health Care Still Gaining Favor

• XLV the top SPDR fund in last month despite lagging today.
• Big pharma bullish chart patterns: PFE MRK AMGN
• Viewed as beneficiary of mid-term elections
• Myriad value opportunities in key names: BHC, CAH, AGN, ABC, WCG, CELG
• Safe haven amid trade uncertainties.

From the Blog:

• G-20 outcome: No clear resolution.
• Solar energy coming to life, political benefit.
• Goldilocks takes over the Fed
• Master the Matrix: TradeStation tutorial
• Why Stocks Move: Margins in focus. (Next up: credit.)

Don’s Watch For Tomorrow:

• Pre-market: Dollar General (DG) reports in the pre-market.
• Pre-market: Autozone (AZO) reports in the pre-market.
• Post-market: Marvell Technology (MRVL) reports in the post-market.
• Post-market: Toll Brothers (TOL) reports in the post-market.
• Post-market: At Home (HOME) reports in the post-market.

Russell’s Watch List:

• Micron Technology (MU) rebounding from 2014 support level.
• Tesla Motors (TSLA): Golden cross amid signs of transformation. Watch for potential acceleration from range.
• Fiat Chrysler (FCAU) may resume longer-term uptrend amid SUV strength.
• Lending Tree (TREE) may result longer-term uptrend.
• Homebuilder ETF (ITB) coming off low, pushing 50-day MA.
• Ulta Salon (ULTA) has breakout potential.

Options recap:

• 11/27: General Electric (GE) Dec 8-7 put spread rolled → Jan 6.50-5.5 put spread & upsized.
• 11/28: SPDR S&P 500 (SPY) Dec 288, 289 calls bought before Powell speech.
• 11/29: Twitter (TWTR) Jan 2020 70 calls bought.

Upcoming Events:

• 12/5: Market Closed. Congressional appearances of Powell, GOOGL’s Pichai to be rescheduled.
• 12/6: OPEC
• 12/7: Non-farm payrolls
• Next week: Potential Brexit vote in Parliament, ECB