The four major U.S. stock market benchmarks closed at all-time highs again on Tuesday, with the Dow ending above 19,000 and the S&P 500 finishing above 2,200 for the first time, and the Nasdaq and Russell 2000 posing new record closes. Futures markets suggest U.S. equities will stabilize today, as oil steadies after an impressive run. Investors are also looking toward U.S. reports on jobless claims, durable goods and consumer confidence.
Minutes of the last Fed meeting may keep a few traders at their desks until mid-afternoon before they bolt for the Thanksgiving holiday. But the release should be anticlimactic after recent comments from Fed officials, who are pointing to a rate increase next month at every opportunity. Fed funds futures currently show the odds of a December rate hike at 100%.
OPEC will debate an oil output cut of between 4%-4.5% at its meeting in Vienna next week, according to Reuters. The deal wouldn’t include Libya or Nigeria, but it’s understood that Iraq and Iran have reservations with Iraq’s foreign minister, who said on Tuesday that OPEC should allow the country to continue raising output without restrictions. If a cut were to be made, OPEC’s current output would reduce by more than 1.2M barrels per day.
In Asia, Japan closed. Hong Kong flat at 22676. China -0.2% to 3241. India +0.4% to 26051.
In Europe, at midday, London +0.3%. Paris -0.6%. Frankfurt -0.8%.
Futures at 6:20, Dow flat. S&P flat. Nasdaq flat. Crude +0.4% to $48.21. Gold flat at $1211.40.
Ten-year Treasury Yield flat at 2.32%
(Source: Seeking Alpha)
7:00 MBA Mortgage Applications
8:30 Durable Goods
8:30 Initial Jobless Claims
9:00 FHFA House Price Index
9:45 PMI Manufacturing Index Flash
9:45 Bloomberg Consumer Comfort Index
10:00 New Home Sales
10:00 Consumer Sentiment
10:30 EIA Petroleum Inventories
12:00 PM EIA Natural Gas Inventory
1:00 PM Results of $28B, 7-Year Note Auction
2:00 PM FOMC minutes
Early profit-taking lead to renewed buying off the 2192.00 intra-day support level as prices reached 3 Day Cycle Rally Target (2203.00) This has been a powerful rally across all sectors and capping off this rally at Cycle Target in fitting style.
Today is Cycle Day 1 (CD1)…Normal is for some type decline…Trading is expected to be very light pre-holiday, so be careful not to over-commit to positions. Uptrend is solidly intact with continued upside potential targeting 2212 – 2216 zone. It would take a shift below 2180 handle to change current bullish sentiment.
Range Projections and Key Levels
**Note: The odds highlighted are NOT predictions or trade recommendations, rather a guide based upon historical observed occurrences.
Today’s Hypotheses: December (Z) Contract
*****The levels outlined below are more general framework within a larger range…They are to be used are reference prices from which to consider trade opportunities, not hard trade levels.
Scenario 1: IF price clears and converts PH (2203.00), THEN upside remains wide-open to 2212 – 2216 STATX and Range High Zones.
Scenario 2: Failure to push higher above PH (2203.00) opens door for pullback targeting 2191 – 2189 3 Day Central Pivot Zone.
Stay Focused…Non-Biased…Disciplined ALWAYS USE STOPS!
“Knowing is not enough, We must APPLY. Willing is not enough, We must DO.” –Bruce Lee
*****This trade strategy report is disseminated for “education only” and should not be viewed in any way as a recommendation to buy or sell futures products.”
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