Market Insights

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S&P 500 Overview: Direction Unclear at Key Level

• S&P 500 at potential resistance but internals have improved amid hunt for value.
• Market hoping for best-case outcomes with Brexit, U.S. shutdown.
• Volatility, bond, yen price action suggests fear has passed for now.
• Index traders can wait for break to downside, but need confirmation.
• Fed beating dovish drum with no recession in sight.

Value Hunt Underway in New Names

• 2018’s IPOs like TLRY, ZS, IQ, PS are leading in the New Year.
• Small caps outperforming on signs smaller companies faring better than Fortune 500s.
• Brazil drawing buyers as Latin America’s top economy swings from socialist to pro-business.
• Some stocks already pushing new highs.
• Attend our New Stocks for the New Year presentation on Jan. 22.

Bullish Options Activity in Energy Space

• Jan. 8: Devon Energy (DVN) April 24 calls → April 28s, doubled in size.
• Jan. 10: Schlumberger (SLB) March 35 puts sold, targeting long-term low.

Don’ Watch List

• Citigroup (C) rallies on strong profits.
• JPMorgan Chase (JPM) may outperform this year. Watch earnings tomorrow morning.
• Wells Fargo (WFC) reports tomorrow morning
• Bank of America (BAC), Goldman Sachs (GS) report Wednesday morning
• Morgan Stanley (MS) reports Thursday morning

Russell’s Watch List:

• REGN, FB may break resistance lines and run into earnings 2-3 weeks from now.
• General Motors (GM) potential turnaround, golden cross coming.
• Goldman Sachs (GS) has a lot of bad news priced in.
• Palo Alto Networks (PANW) pushing resistance after strong earnings.
• Banks interesting as yield curve begins to steepen. Citi (C) predicts strong lending.
• Exelixis (EXEL): Watch for potential pullback, bounce near $22
• Coupa (COUP): Watch for breakout after Jan. 15 presentation.
• World Wrestling (WWE): May run away from 50-day MA.
• ZS, PS, DOMO making new highs in New Year, after strong earnings.

Indicator of the Week:

• Two lines of Easy Language helps you find recent IPOs:
  If BarNumber > 1 AND LastBarOnChart then
  Plot1(BarNumber, “BarNumber”);