Posts by The Trend Letter

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Headlines – April 25/18

  • Here’s the threat to the stock market from rising bond yields. Read story
  • Trump’s travel ban faces US Supreme Court reckoning. Read story
  • Trump, Apple CEO to meet as US-China trade row roils tech sector. Read story
  • Iran’s Rouhani rejects Trump-Macron nuclear proposal. Read story
  • Twitter tops earnings projections as turnaround gains steam. Read story
  • The Winklevoss twins are teaming up with NASDAQ to sniff out bad actors on their cryptocurrency exchange. Read story
  • China assigns every citizen with a ‘Social Credit Score’ to identify who is trustworthy and who isn’t. Reads story
  • Madrid’s leader reigns over shoplifting allegations, weeks after being accused of faking master’s degree. Read story
  • NBC owner Comcast gate-crashes Fox’s takeover bid of Sky with $30.7 billion bid. Read story
  • Amazon workers booed Bezos in Berlin. Read story
  • North Korea’s nuclear test site is largely unusable, Chinese scientists say. Read story
  • These are the fastest growing jobs in every state. Read story
  • Loud noises knocked out computers that run stock exchanges across Northern Europe. Read story
  • On the lighter side. Check it out!

Stay tuned!

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Headlines – April 24/18

  • Ten dead, 15 injured as van plows through Toronto crowd. Read story
  • What’s sabotaging gold’s attempts to rally? Read story
  • Public outcry after China campus #MeToo activist ‘pressured into silence’. Read story
  • The worst is yet to come for brick and mortar retail stocks. Read story
  • CBO projects US GDP growth of 3.3%, highest in 15 years. Read story
  • Home prices surge in February – even as mortgage rates rise. Read story
  • Americans – including the rich and famous are losing out on billions of unclaimed money. Read story
  • Calexit plan to divorce California from US gets second chance. Read story
  • Facebook has revealed the hyper-specific internal rules it uses to police content. Read story
  • Amazon launches in-car delivery for Prime members using Amazon Key. Read story
  • Weak business morale in Germany, France, Italy points to slowdown. Read story
  • Apple’s mistakes with HomePod will cost it a huge new market, according to a brutal Deutsche Bank analysis. Read story
  • Violent April breaks brief peace in Baltimore, 29 killings in past 3 weeks. Read story
  • On the lighter side. Check it out!

Stay tuned!

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Headlines – April 23/18

  • European leaders urge Trump not to quit Iran deal: Germany. Read story
  • US bond market takes stab at 3%, rising 3 basis points to 2.986%. Read story
  • China’s Xi says internet control key to stability. Read story
  • ‘It’s a boy’: Duchess gives birth to new Prince. Read story
  • North Korea says it will suspend missile tests, close nuclear test site. Read story
  • Mexico murder rate soars with 7,667 killed in 3 months. Read story
  • Russian lawyer wonders why Mueller hasn’t contacted her. Read story
  • Amazon has top-secret plan to build home robots. Read story
  • How self-made millionaires get rich working for others. Read story
  • Forget iPhone X – Apple could launch a new iPhone with a bigger screen this year for as little as $550. Read story
  • People with depression are more likely to say certain words. Read story
  • ‘Cut off hands’: Mexican presidential candidate’s plan to deter thieves. Read story
  • Is walking actually good exercise? Five health experts weigh in. Read story
  • Shania Twain apologizes for saying she would have voted for Trump. Read story
  • On the lighter side. Check it out!

Stay tuned!

caution

Key targets for the S&P 500

As we close the week, we continue to see the S&P 500 consolidate, trading in a range between Near-term Support at 2581 and Near-term Resistance at 2707. That 2700 level is a resistance target we noted for the past month and it held right on schedule. The 2581 level has been our targeted support since March 27th.

spx1y0420

Looking at the 2-year chart we can see how the 200-DMA (blue line) has acted as very strong support for the S&P 500.  While we are actually still bullish for the market, at least for another 1-2 years, our indicators continue to warn that this consolidation phase that we have been in since January 26th, is not yet complete.  Our models warn that the market is ripe for a significant decline from the recent high at 2707, with a re-test of its 200-DMA likely, and a challenge of the lower band of the uptrend channel very possible.

Short-term, we want to keep a close eye on that 200-DMA because it is an important technical indicator. In bull markets, stocks tend to spend most of their time above the 200-DMA, while during bear markets, they spend most of their time below this line. Stocks seldom stray too far from this line in either direction, and when they do, the further they stray, the faster they tend to revert back to it. Having spent most of the last 2-years above the 200-DMA, the S&P is now consolidating closer to that level.

We would expect to see the S&P drop below the 200-DMA in the next 2-3 weeks, recharge, and find a bottom before making a run at new highs.

Here are the Key levels to watch for the next 2-3 weeks:

Bearish scenario:

2587 – the 200-DMA
2535 – bottom of the 2-year uptrend channel
2470 – target low
2350 –  potential low

Bullish scenario:

2707 – near-term resistance
2780 – target high
2873 – key resistance

Note that should we see a surprise breakout through 2780, it would need to be acknowledged as an early resumption of the uptrend, and would suggest a break above the January 26th high of 2873 is likely, with an upside target of 2900-2920.

If we are correct and we see the bearish scenario play out over the next few weeks, and we hit our target low of 2470, then in early May we will likely be sending out some new BUY signals to subscribers. If you are not currently a subscriber but want to receive all of our weekly reports, including all of our buy & sell recommendations,  you can subscribe now and get The Trend Letter for only $369.95, a $230 discount off the regular price. Click Here to subscribe.

Stay tuned!

 

 

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Headlines – April 20/18

  • Watch out as even Fed doves fret about markets living in La-La land. Read story
  • Trump targets OPEC over high oil prices. Read story
  • The most important crypto indicator just turned bullish. Read story
  • A $76,000 monthly pension: Why states and cities are struggling to meet massive pension obligations. Read story
  • Trump on Comey memos: ‘Is that really the way America is supposed to work? I don’t think so’. Read story
  • Rudy Giuliani joins Trump team legal team, hopes to end Russia probe in ‘ a week or two.’ Read story
  • Why hackers are targeting your office gossip. Read story
  • China has reservations about Qualcomm’s $44 billion deal with NXP. Read story
  • Who is Miguel Diaz-Canel, Cuba’s new handpicked president? Read story
  • America’s nuclear headache: Old plutonium with nowhere to go. Read story
  • April shaping up to be Detroit’s coldest in 143 years. Read story
  • Nissan to cut hundreds of jobs at UK plant as diesel demands slides. Read story
  • After Southwest emergency, how you can tell the age of your airplane. Read story
  • A new report heaps skepticism on vitamin D and calcium supplements. Read story
  • On the lighter side. Check it out!

Stay tuned!

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Headlines – April 19/18

  • Oil rallies to 3-year high as supply tightens. Read story
  • Watch for ‘violent sell-off’ to thwart Saudi’s wish for $100 oil. Read story
  • China looks to speed up chip plans as US trade tensions boil. Read story
  • Former Trump lawyer says he warned the President that Cohen could turn against him. Read story
  • How hidden trackers on websites use ‘login with Facebook’ to harvest your data. Read story
  • Jeff Bezos reveals that Amazon has 100 million Prime users. Read story
  • It took three years for robots to learn to build an Ikea chair – and just 20 minutes to finish it. Read story
  • The CFA is the world’s most brutal exam in the world of finance – here’s what the questions look like. Read story
  • Survey: More than half of the world’s wealthy expect to live to 100. Read story
  • ‘Forest bathing’ takes tree hugging to new extremes. Read story
  • Hyper-realistic robot ‘indistinguishable from humans.’ Read story
  • A new start-up is disrupting the piggy bank with a cryptocurrency wallet for kids. Read story
  • San Francisco is building skyscrapers like crazy- and there could be a deadly downside. Read story
  • On the lighter side. Check it out!

Stay tuned!

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Headlines – April 18/18

  • Morgan Stanley beats, posts record quarter. Read story
  • Russia: our response to US sanctions will be precise and painful. Read story
  • Pompeo visits North Korea, forms ‘good relationship with Kim’, says Trump. Read story
  • McConnel shuts down bill to protect Mueller. Read story
  • Iceland’s Bitcoin heist suspect ‘flees on PM’s plane.’ Read story
  • Starbucks to close 8,000 stores for ‘racial-bias education program.’ Read story
  • Why the Saudi crown prince met with Trump. Oprah, Bill Gates, and Jeff Bezos. Read story
  • IBM earnings show AI not paying off yet. Read story
  • US launches anti-dumping probe into steel wheels from China. Read story
  • This proven recession predictor is close to sounding an alarm. Read story
  • The best money transfer rates bypass both banks and blockchain. Read story
  • Elon Musk reportedly tells employees to just leave meetings or hang up the phone if it’s not productive. Read story
  • Turkish fighter jets ‘harass’ Greek PM’s helicopter. Read story
  • Autonomous drones will soon decide for themselves who to kill. Read story
  • On the lighter side. Check it out!

Stay tuned!

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Headlines – April 17/18

  • IMF says global growth to hit seven-year high, but could be curtailed by trade barriers. Read story
  • Famed war reported Robert Fisk reaches Syrian ‘chemical attack’ site and concludes ‘they were not gassed.’ Read story
  • China seeks trade firewall with Europe against US. Read story
  • Tesla is temporarily stopping Model 3 production again, threatening its financial future. Read story
  • New EU law to force Facebook, Google, Microsoft to give police user’s data, even if stored outside EU. Read story
  • Fed’s Williams sees US inflation at or above goal for years. Read story
  • France’s Macron: Europe is in ‘civil war’ over democracy. Read story
  • American Express launches a new credit card for jet setters – with a $450 annual fee. Read story
  • Alberta moves to restrict oil, gas flow as dispute with BC escalates. Read story
  • How much would you pay for Facebook? Read story
  • China to ease rules on foreign auto makers after US calls for level playing field. Read story
  • Japan to trial ‘world’s first urine test’ to spot cancer.  Read story
  • Doing taxes is such a pain that American forgo billions in savings just to get it over with. Read story
  • On the lighter side. Check it out!

Stay tuned!

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Headlines – April 16/18

  • Russian stocks slip as traders brace for another round of US sanctions. Read story
  • Putin predicts global ‘chaos’ if West hits Syria again.Read story
  • Oil prices slide after last week’s big gains, as Syria-risk fatigue sets in. Read story
  • Russia denies tampering with suspected Syria chemical attack site. Read story
  • Bank of America tops profit, revenue expectations. Read story
  • US bans American companies from selling to Chinese phone maker ZTE. Read story
  • Mark Modius predicts 30% market correction. Read story
  • Japan’s PM Abe’s woes deepen as rating drop, predecessor predicts resignation. Read story
  • 1/3 of Canadians fear bankruptcy amid ‘debt trap’ warning. Read story
  • The billion dollar, Alibaba-backed AI company that’s quietly watching people in China. Read story
  • Families of Chinese activists face house arrest, harassment from ‘smiling tigers’. Read story
  • Amazon warehouse workers reportedly say they pee into bottles, scared of being punished for taking breaks. Read story
  • Google’s astounding new search tool will answer any question by reading thousands of books. Read story
  • On the lighter side. Check it out!

Stay tuned!

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Headlines – April 12/18

  • JPMorgan, Citigroup, and Wells Fargo top earning expectations. Read story
  • Russia says Syrian ‘chemical attack’ was staged. Read story
  • Trade war backfire: Steel tariff shrapnel hits US farmers. Read story
  • White House plans hard line stance to push China trade concessions. Read story
  • Elon Musk says Tesla will be profitable in third, fourth quarter. Read story
  • Trump says US will join TPP only if terms improve. Read story
  • Canada honours victims of Humbolt Hockey team bush crash with “Jersey Day”. Read story
  • Trudeau to press BC to accept Trans Mountain pipeline. Read story
  • Trump calls Comey ‘untruthful slime ball’. Read story
  • Comey compares Trump to Mafia Boss. Read story
  • The Cambridge Analytica data breach also harvested people’s private Facebook messages. Read story
  • What we learned from Mark Zuckerberg’s congressional testimony. Read story
  • Paul Ryan about to collect almost $85,000 a year pension. Read story
  • Former Postmaster General says Amazon is good for the Postal Service. Read story
  • On the lighter side. Check it out!

Stay tuned!