November 30, 2018
Mark Newton CMT, Newton Advisors, LLC
VIDEOS- Friday Technical Video: CLICK BELOW
BOTTOM LINE: BULLET FORM
Stocks showing resilience into G-20 meeting, and any hint of conciliatory tone this weekend likely viewed as a positive for Stocks-2750 Key for SPX, 6950 for NDX and 68 for XLK- Getting above these should allow for followthrough higher given bullish seasonality and bearish sentiment
Transportation stocks along with Pharmaceuticals both showed meaningful breakouts this week, which bodes well for both groups to trend higher and outperform
US 10-Year Treasury yields and Stocks have diverged in recent days for the first time in nearly two months. This trend of stocks and bonds moving together could persist near-term
US Dollar index set to finish out the month of November near the highs, and additional strength looks likely into mid-to-late December before a reversal lower into 2019
Buy ideas to consider: CQQQ, UAL, CMI, UNP, DB(Dolby), FB, FDS
Sell/short ideas to consider: BGG, WY, CAR, WDC, STX
SPX- DAILY Chart-
S&P daily chart showing prices still quite resilient and inching higher near the highs of the day. While a stallout was expected, it looks right to lean long into next week, thinking that the bar has been set quite low for the G-20, and that any hint of reconciliation and/or postponement of Tariffs should be viewed quite positively by markets next week. Overall, over 2750 is bullish for a move to 2775 and then 2810-5.
Transports showing a very bullish breakout move this week and should help this group extend higher, with TRAN targets near 11092 initially, and then 11206. Groups like Airlines and Rails also making bullish moves that should help these to also outperform.