|Day's Range||7,133.29 - 7,291.26|
|52 Week Range||6,011.24 - 7,700.56|
Based on the early price action, the direction of the December NASDAQ-100 Index futures contract is likely to be determined by trader reaction to the 50% level at 7057.00. The short-term range is 7728.75 to 6907.75. Its retracement zone at 7318.25 to 7415.25 is the primary upside target.
Global stocks trade mostly higher on Tuesday morning. The political tension between the US and Saudi Arabia over the disappearance of Jamal Khashoggi remains in focus.
Based on the early price action, the direction of the December E-mini NASDAQ-100 Index futures contract is likely to be determined by trader reaction to the main 50% level at 7057.00.
Later this week, traders will get a chance to react to earnings from Netflix, Morgan Stanley, Johnson & Johnson, Procter & Gamble and Honeywell. Investors will be keying in on Netflix, which releases its earnings report after the close on Tuesday because this stock is one of the bellwether FANGS.
When the Fed was throwing money at the market, everyone was an “investing genius” because all you had to do was buy shares and momentum did the leg-work. However, with value investing, there is no momentum or if there is, it’s to the downside.
Rising US yields, along with the fears of a global economic slowdown have pressured global stock markets last week. Is this the start of a correction or a recession?
U.S. Treasury yields snapped back on Friday as U.S. stocks rebounded from a steep sell-off earlier in the week. The rise in yields was fueled by investors who reversed their safe-haven buys of Treasurys during the height of the stock market sell-off. Bond yields move inversely to prices.
On Thursday, U.S. President Trump said that, “It’s a correction that I think is caused by the Fed and interest rates. ”“The first two weeks of October are historically biased to the downside – they are usually cleaning up a sell-off from September. We didn’t get much of one this year, but we are still in that negative two-week period,” Cashin said on CNBC’s Closing Bell.
Based on the early price action, the direction of the December E-mini NASDAQ-100 Index on Thursday is likely to be determined by trader reaction to the value zone at 6898.50 to 6822.75. Basically, look for an upside bias to develop on a sustained move over 7057.00 and a downside bias on a sustained move under 6822.75. Trading in between these levels will create choppy trading conditions.
The technology sector was the biggest drag on both the S&P 500 Index and the Dow with the NASDAQ Composite posting is largest single day sell-off since June 24, 2016. The overall tech sector in the S&P 500 posted its worst day in seven years, falling 4.8 percent.
On Wednesday morning the markets are dominated by mixed dynamics. Political events in Europe have somewhat drawn attention from the U.S. debt markets and there is still pressure on the bonds.
Traders returned from Monday’s Columbus Day holiday by driving the yield on the benchmark 10-year Treasury note above 3.25 percent in early trading, returning to its highest level since 2011. The yield on the 30-year Treasury bond rose above 3.43 percent, its highest level since 2014.
I’ve got news for you, bull markets don’t die this fast so expect some backing and filling over the near-term. I don’t see a “crash” coming, but short-term corrections are inevitable because rates are rising. These attractive higher rates are offering investors alternatives to the stock market for the first time in years and that’s alright for me.
Based on the early price action, the direction of the December E-mini NASDAQ-100 Index on Tuesday is likely to be determined by trader reaction to the price cluster at 7393.50 to 7398.00.
Towards the end of 2017, the term “synchronized global growth” cropped up. Markets started to price strong global growth in 2018. Copper, an indicator of global economic activity, rallied almost 8% in December 2017 and ended the year with 31.3% gains. Earlier in 2018, the IMF raised its 2018 global economic growth forecast to 3.9% from 3.8%.
Although global stocks trade steady on Tuesday morning, the sentiment remains negative. High bond yields, oil prices, and geopolitical instability continue to weigh on financial markets.
The S&P500 saw the biggest change since 1999. What might be the impacts of changes on investors? There are many of them, and in the long run, many of them are crucial.
Last week, it was rapidly rising Treasury yields drawing money out of stocks and raising concerns over future earnings due to increasing financing costs. This week, the focus could shift to the consumer. This is because of rising mortgage rates for homeowners and buoying credit card bills for the typical consumer.
China’s economic growth was led by higher infrastructure investments and growing exports. Companies like Apple (AAPL) used China as a manufacturing base due to its low-cost advantage. China has started to gradually progress from an investment-driven economy to a consumption-driven economy.
Based on the early trade, the direction of the December E-mini NASDAQ-100 Index is likely to be determined by trader reaction to the 50% level at 7462.00 and the 61.8% level at 7398.00. Basically, look for an upside bias on a sustained move over 7461.25 and for a downside bias on a sustained move under 7389.50.
The Labor Department reported the economy added 134K jobs in September versus the 185K estimate while revising August’s nonfarm payroll number up dramatically, to 270,000 form 201,000. In other news, the Bureau of Labor Statistics and the U.S. Census said the U.S. Trade Balance deficit increased $3.2 billion in August to $53.2 billion, a 6.4 percent increase and part of an ongoing trend in 2018.
Based on the early price action, the direction of the December E-mini NASDAQ-100 Index futures market is likely to be determined by trader reaction to the uptrending Gann angle at 7474.25.
The two-side volatility was best seen in the Dow which rose 250 points to a new all-time high early in the session, but ended up settling only 54 points higher. The S&P 500 also soared early, however, it struggled late to settle nearly unchanged. The NASDAQ also treaded water late in the day.
U.S. stocks and U.S. Treasury yields moved higher after ADP and Moody’s Analytics reported that job growth surged in September to its highest level in seven months. The ISM non-manufacturing index rose to 61.6 last month, its highest level since the index was created in 2008. Economists were looking for a reading of 58. Crude oil prices fell on Wednesday after the EIA report showed a big jump in U.S. crude stockpiles and top exporter said it increased output to near a record high.
Powell said he saw the U.S. economy generating highly optimistic expectations, with the unusual combination of low unemployment and inflation fueling hopes for an extended expansion.