S&P 500 (SPY) Dives To 3850 As FedEx Report Highlights Recession Risks

Key Insights

  • The disappointing report from FedEx put significant pressure on S&P 500 today. 
  • Treasury yields keep moving higher, which is bearish for stocks. 
  • A move below 3850 will push S&P 500 towards the next support level at 3825.

S&P 500 Remains Under Strong Pressure Ahead Of The Weekend

S&P 500 moved towards the 3850 level after a disappointing FedEx fiscal Q1 report. The report missed analyst estimates. In addition, FedEx withdrew its fiscal year 2023 earnings forecast, which was provided on June 23, 2022.

FedEx noted that “results were particularly impacted by macroeconomic weakness in Asia and service challenges in Europe, leading to a revenue shortfall in this segment of approximately $500 million relative to company forecasts.”

FedEx stock is down by 22% in today’s trading session. United Parcel Service stock has also found itself under material pressure.

The FedEx report boosted worries about a global recession. Not surprisingly, consumer cyclical stocks have found are losing ground today. Packaging Corporation of America and International Paper Company are down by more than 11%.

Other notable losers include General Electric, which is down by 5%, and Boeing, which is down by 4% in today’s trading.

Meanwhile, Treasury yields keep moving higher as traders remain nervous ahead of the Fed meeting. Higher yields are bearish for tech stocks, which are moving lower. Meta managed to settle below the $150 level and is testing yearly lows near the $146 level. Amazon stock is down by 3% today.

S&P 500 Tests Support At 3950

S&P 500

S&P 500 managed to settle below the support at 3885 and is testing the next support level at 3850. In case this test is successful, S&P 500 will move towards the next support level, which is located at 3825. A move below 3825 will push S&P 500 towards the support at 3800. If S&P 500 declines below this level, it will head towards the next support at 3780.

On the upside, the previous support level at 3885 will serve as the first resistance level for S&P 500. In case S&P 500 manages to settle back above 3885, it will head towards the resistance at 3900. A successful test of the resistance at 3900 will push S&P 500 towards the next resistance level at 3920.

For a look at all of today’s economic events, check out our economic calendar.

General Electric Shares Dip After Group Reaffirms Earnings Outlook

General Electric shares fell over 1.4% in pre-market trading on Thursday after the company reiterated its already-lowered earnings forecast for this year at its Investors Day as surging inputs costs and supply chain bottlenecks continue to bite.

The Boston Massachusetts-based company forecasts adjusted profit for the year in the range of $2.80-$3.50 per share. The company expects its profit margin will grow by 150 basis points that will generate $5.5 billion-$6.5 billion in free cash flow. General Electric also predicted an operating profit of nearly $10 billion and a free cash flow of around $7 billion for next year.

In the fourth-quarter results, which was released in late January, the company reported quarterly adjusted earnings of $0.92 ​ per share, beating the Wall Street consensus estimates of $0.83 per share. However, its revenue declined more than 7% to $20.3 billion from a year earlier. That missed analysts’ expectations of $21.5 billion.

General Electric stock fell 1.4% to $89.95 in pre-market trading on Thursday. The stock fell more than 3% so far this year after rising over 9% in 2021.

Analyst Comments

“Tail risks have been sufficiently managed over the past 4 years as to allow the particularly attractive Aviation and Healthcare franchises to be valued independently and pursue additional strategic optionality,” noted Joshua Pokrzywinski, equity analyst at Morgan Stanley.

“Power, pension, and Long-Term Care are no longer overarching drags on leverage, profitability, and cash. The catalyst path remains uneven, however, and deleveraging to unlock more equity value will ramp in earnest in mid-2022 through year-end 2023 as cash seasonality and Aviation aftermarket ramp. We see this as a good risk/reward framework today improving further as the year progresses.”

General Electric Stock Price Forecast

Fifteen analysts who offered stock ratings for General Electric in the last three months forecast the average price in 12 months of $112.33 with a high forecast of $132.00 and a low forecast of $55.00.

The average price target represents a 23.10% change from the last price of $91.25. Of those 15 analysts, 11 rated “Buy”, four rated “Hold”, while none rated “Sell”, according to Tipranks.

Morgan Stanley gave the base target price to $120 with a high of $160 under a bull scenario and $70 under the worst-case scenario. The investment bank gave an “Overweight” rating on the company’s stock.

Several analysts have also updated their stock outlook. UBS cut the price objective to $132 from $143. Credit Suisse lowered the target price to $116 from $122. RBC raised the price target to $113 from $108. BofA Global Research lashed the price objective to $132 from $140.

However, technical analysis suggests it is good to sell as 100-day Moving Average and 100-200-day MACD Oscillator shows a selling opportunity.

Check out FX Empire’s earnings calendar

Why General Electric Stock Is Down By 7% Today

General Electric Stock Falls As Guidance Disappoints

Shares of General Electric gained downside momentum after the company released its fourth-quarter earnings report.

General Electric reported revenues of $20.3 billion and adjusted earnings of $0.92 per share, missing analyst estimates on revenue and beating them on earnings.

For the full year 2022, the company expects to report adjusted earnings of $2.80 – $3.50 per share compared to earnings of $2.12 per share in 2021. Free cash flow is expected to total $5.5 billion – $6.5 billion.

The market focused on the EPS guidance as analyst estimates for 2022 were close to $4.00. With a midpoint of guidance at $3.15 per share, General Electric’s earnings expectations for 2022 are well below analyst forecasts, so it’s not surprising to see that the stock is down by more than 7% today.

What’s Next For General Electric Stock?

S&P 500 has been under significant pressure in recent weeks, and traders are sensitive to any bad news. In this light, it remains to be seen whether speculative traders will rush to buy General Electric stock after the recent pullback.

Assuming that the company will be able to report earnings at the midpoint of its guidance, the stock is trading at roughly 28 forward P/E which does not look cheap for General Electric.

In addition, the pressure on higher-PE stocks has been visible in recent trading sessions. While General Electric’s valuation may look modest compared to various tech leaders like NVIDIA or Tesla, traders should keep in mind that P/Es in the 30s or high 20s for companies like General Electric will always be questioned by the market.

To justify its current valuation, General Electric should deliver solid growth in the next few years. However, the recent guidance shows that this growth may be more modest compared to analyst expectations, which may serve as a longer-term negative catalyst for General Electric stock.

For a look at all of today’s economic events, check out our economic calendar.

General Electric Could Drop into the 60s

General Electric Co. (GE) reports Q4 2021 earnings in Tuesday’s pre-market, with analysts expecting the company to post a profit of $0.82 per-share on $21.35 billion in revenue. If met, earnings-per-share (EPS) will mark a tenfold improvement compared to the same quarter last year. However, GE issued a 1-for-8 reverse split in August, so the uptick isn’t nearly as dramatic. The stock topped out in March 2021 and broke down from range support in November.

Reorganization Continues Amid Headwinds

The company is breaking into three pieces, with aerospace, healthcare, and power generation divisions defining new profit centers. Healthcare is a sore thumb right now, as evidenced by a decline in reported sales from $19.9 billion in 2019 to $17.9 billion in the four quarters ending in September. GE is also dealing with heavy debt payments in a rising interest rate environment so refinancing will be more expensive going forward.

CEO Larry Culp outlined GE’s challenges in a weekend Barron’s interview, noting “Is there some deal limbo? Perhaps. But with Omicron, GE is trading in line with the sector. We’re going to continue to drive improvement. I think the story continues to be about our performance. Whether you’re looking at the performance trajectory of this business, or looking at the pieces, I think there’s going to be more appeal.”

Wall Street and Technical Outlook

Wall Street consensus yields a ‘Moderate Buy’ rating based upon 12 ‘Buy’, 2 ‘Overweight’, 9 ‘Hold’, 0 ‘Underweight’, and 0 ‘Sell’ recommendations. Price targets currently range from a low of $94 to a Street-high $145 while the stock is set to open Monday’s session just a buck above the low target. This disconnect with Main Street investors highlights broad-based concern about rising inflation and its impact on quarterly profits.

General Electric has posted lower highs since topping out in 2000. The last intermediate uptrend ended above 250 in 2016, ahead of a steep downtrend that posted a 27-year low in 2020. Positive price action into the first quarter of 2021 stalled at the 200-week moving average, yielding a sideways pattern that broke support in the mid-90s in November. The stock has spent the last two months testing new resistance, with last week’s selloff likely to continue in coming weeks.

Catch up on the latest price action with our new ETF performance breakdown.

Disclosure: the author held no positions in aforementioned securities at the time of publication. 

Wall Street Closes at Record But Facebook Weighs

Facebook Inc, down 3.92%, was the biggest drag on the S&P 500 and Nasdaq, after the company warned that Apple Inc’s new privacy changes would weigh on its digital business. Shares of the social media company closed below its 200-day moving average for the first time since March 8, a technical support level that could indicate further declines.

Facebook has other issues, certainly the earnings report wasn’t as stellar,” said Ken Polcari, managing partner at Kace Capital Advisors in Boca Raton, Florida.

“Then pile on the issues with the whistleblower, what they knew, what they didn’t know, how they set themselves up to benefit themselves even at the risk of kids and people that use the platform. That is going to kind of hang over it.”

However, the benchmark S&P index scored a new high, lifted by names with big market capitalizations. Nvidia Corp gained 6.70% to close at a record high of $247.17, while Amazon.com Inc advanced 1.68% and Apple rose 0.46%.

Support also came from a 6.95% advance in United Parcel Service Inc and a 2.03% rise in General Electric Co on the heels of their quarterly results.

The Dow Jones Industrial Average rose 15.73 points, or 0.04%, to 35,756.88; the S&P 500 gained 8.31 points, or 0.18%, at 4,574.79; and the Nasdaq Composite added 9.01 points, or 0.06%, at 15,235.72.

Earnings at S&P 500 companies are expected to grow 35.6% year-on-year in the third quarter, with market participants gauging how companies are navigating supply-chain bottlenecks, labor shortages and inflationary pressures.

“(The market) is getting tired. They ran them up ahead of earnings because everyone is expecting them to be good and robust, and they are … but the market feels tired to me now way up here,” said Polcari.

While nearly all 11 S&P sectors rose on the session, defensive plays such as utilities and real estate were among the best performers, indicating some caution in the market.

After the closing bell, Microsoft Corp gained 1.29% while Google parent Alphabet Inc slipped 0.24% following their quarterly results.

Data showed U.S. consumer confidence unexpectedly rebounded in October as concerns about high inflation were offset by improving labor market prospects. A Commerce Department report showed sales of new single-family homes surged 14.0% in September.

Ross Mayfield, investment strategist at Baird in Louisville, Kentucky, said with indexes at or near record levels, a run of good economic data could increase investor concerns the Federal Reserve may pull its timeline for a rate hike forward.

The central bank’s next policy announcement is expected on Nov. 3 after a two-day meeting.

Shares of Hasbro Inc climbed 3.23% after the toy maker posted an upbeat third-quarter profit even as it warned of a hit to holiday sales from supply chain issues.

Declining issues outnumbered advancers on the NYSE by a 1.13-to-1 ratio; on Nasdaq, a 1.23-to-1 ratio favored decliners.

The S&P 500 posted 69 new 52-week highs and no new lows; the Nasdaq Composite recorded 144 new highs and 79 new lows.

Volume on U.S. exchanges was 12.34 billion shares, compared with the 10.41 billion average for the full session over the last 20 trading days.

For a look at all of today’s economic events, check out our economic calendar.

(Reporting by Chuck Mikolajczak; Editing by Richard Chang)

Marketmind: Trillion-Dollar Tesla

LONDON (Reuters) – A look at the day ahead from Sujata Rao

The news was less cheerful from Facebook which is contending with whistleblowers and falling popularity among the young. But a $50 billion buyback plan, unveiled after market close, may be enough to lift the shares on Tuesday, especially if fellow tech titans Google, Microsoft and Twitter also post upbeat figures.

All in all, the global equity index is inching back towards the record highs hit early-September. U.S. stock futures pointing north for Tuesday and Japanese markets added 1.8%. In Europe, a surprise 9% profit boost at UBS — its highest in six years — could see the pan-European banking index rally further past April 2019 highs.

But the supply-chain snarl-ups, container traffic jams and chip shortages bedevilling companies worldwide show no signs of going away any time soon.

Just take carmaker Hyundai, which missed profit estimates and predicted that the chip shortages hampering output would take a long time to fix. And French car parts maker Faurecia saw Q3 sales drop 10% as semiconductor shortages forced its customers to cut production.

Then there is the prospect of central bank policy tightening, with the Bank of England looking set to join rate-hike club next month.

It all adds up to slower economic growth and earnings, Citi reckons. That could see buy-side analysts switching to net “downgrade” mode on stock recommendations for the first time since the pandemic first hit, it added.

And don’t forget China, where another developer Modern Land missed paying a bond due on Monday. Shanghai and Hong Kong shares fell, despite gains for EV firms.

Key developments that should provide more direction to markets on Tuesday:

-Philadelphia Fed Nonmanufacturing Business Outlook Survey

-U.S. monthly home prices Aug/consumer confidence Oct/new home sales Sept

-U.S. 2-year note auction

-Europe earnings: Norsk Hydro posts record Q3; Reckitt Benckiser ups full-year f’cast after upbeat Q3; Logitech sales rise on work-from-home boom

– -U.S. earnings: 3M, Corning, Eli Lilly, General Electric, Hasbro, Invesco, JetBlue, Lockheed Martin, S&P Global, United Parcel Service, Xerox, Google, Microsoft, Texas Instruments, Twitter, Visa

(For graphic on Tesla – https://fingfx.thomsonreuters.com/gfx/mkt/jnvwewzegvw/Pasted%20image%201635194081739.png)

(Reporting by Sujata Rao; editing by Karin Strohecker)

Earnings Week Ahead: Most Big U.S. Banks, Delta Air Lines, UnitedHealth and Domino’s in Focus

Earnings Calendar For The Week Of October 11

Monday (October 11)

No major earnings are scheduled for release.

Tuesday (October 12)

Ticker Company EPS Forecast
TRYG Tryg KRW1.71
FAST Fastenal $0.42
PNFP Pinnacle Financial Partners $1.55

Wednesday (October 13)


BLACKROCK: The world’s largest asset manager is expected to report its third-quarter earnings of $9.70 per share on Wednesday, which represents year-on-year growth of over 5% from $9.22 per share seen in the same period a year ago.

The New York-based multinational investment management corporation would post revenue growth of over 13% to around $5.0 billion. In the last four consecutive quarters, on average, the investment manager has delivered an earnings surprise of over 9%.

“We believe BlackRock (BLK) is best positioned on the asset mgmt barbell given leading iShares ETF platform, multi-asset & alts combined with technology/Aladdin offerings that should drive ~13% EPS CAGR (2020-23e) via ~6% avg LT organic growth,” noted Michael Cyprys, equity analyst at Morgan Stanley.

“We see further growth ahead for Alts, iShares, international penetration, and the institutional market in the US. Recently acquired Aperio also bolsters solutions offering and organic growth. We expect the premium to widen as BLK takes share in evolving industry and executes on improving organic revenue growth trajectory.”

DELTA AIR LINES: The earnings per share (EPS) is expected to swing back to positive territory for the first time in seven quarters on Wednesday, more than doubling to $0.16 per share compared to a huge loss of -$3.30 per share seen in the same period a year ago.

The Airline company, which provides scheduled air transportation for passengers and cargo throughout the United States and across the world, is forecast to report revenue growth of over 170% in the third quarter to around $8.4 billion. It is worth noting that in the last two years, the airline has beaten consensus earnings estimates just three times.

“Airlines will report 3Q21 results later this month, beginning Oct 13 with Delta Air Lines’ release. We believe 3Q21 started strong, sagged in the middle and then finished strong as people started planning holiday trips,” noted Helane Becker, equity analyst at Cowen.

“We believe 4Q21 guidance will reflect a strong peak, likely >2019 levels while off-peak is likely to lag 2019 levels. Stocks to own include United Airlines (UAL), Alaska Air Group (ALK), Allegiant Travel (ALGT) & Southwest Airlines (LUV).”


Ticker Company EPS Forecast
JPM JPMorgan Chase $3.00
BLK BlackRock $9.60
INFY Infosys $0.17
WIT Wipro $0.07
FRC First Republic Bank $1.84
DAL Delta Air Lines $0.16

Thursday (October 14)


UNITEDHEALTH: Minnesota-based health insurer is expected to report its third-quarter earnings of $4.41 per share, which represents year-over-year growth of over 25% from $3.51 per share seen in the same quarter a year ago.

In the last four consecutive quarters, on average, the company has delivered an earnings surprise of over 11%. The largest insurance company by Net Premiums would post revenue growth of about 10% to around $72.0 billion.

UnitedHealth Group is the number one Medicare Advantage player with ~28% market share, the number two Medicare PDP player with ~20% market share, and the number two commercial player with ~15% market share,” noted Ricky Goldwasser, equity analyst at Morgan Stanley.

United’s model is enhanced via vertical integration with its OptumRx PBM platform, which is one of the three largest PBMs in the country. With a large lead in the breadth of services offerings and considerable exposure to government businesses, UnitedHealth is well-positioned for any potential changes in the US healthcare system. A strong balance sheet and continued solid cash generation give flexibility for continued M&A.”

DOMINO’S: The world’s largest pizza company is expected to report its third-quarter earnings of $3.11 per share, which represents year-over-year growth of about 25% from $2.49 per share seen in the same quarter a year ago.

The company has beaten consensus earnings per share (EPS) estimates only twice in the last four quarters. The largest pizza chain in the world would post revenue growth of about 7% to around $1.03 billion.


Ticker Company EPS Forecast
UNH UnitedHealth $4.41
BAC Bank Of America $0.71
WFC Wells Fargo $1.00
MS Morgan Stanley $1.69
C Citigroup $1.74
USB US Bancorp $1.15
WBA Walgreens Boots Alliance $1.02
AA Alcoa $1.75
DCT DCT Industrial Trust $0.02
TSM Taiwan Semiconductor Mfg $1.04
DPZ Dominos Pizza $3.11
CMC Commercial Metals $1.19

Friday (October 15)


The New York-based leading global investment bank is expected to report its third-quarter earnings of $10.11 per share, which represents year-over-year growth of over 4% from $9.68 per share seen in the same quarter a year ago.

It is worth noting that in the last two years, the world’s leading investment manager has surpassed market consensus expectations for profit and revenue most of the time. The world’s leading investment manager would post revenue growth of over 4% to around $11.25 billion.

“Reason to Buy: Organic growth, solid capital position and steady capital deployment activities continue to enhance Goldman’s prospects. Business diversification offers long-term earnings stability,” noted analysts at ZACKS Research.

“Reason to Sell: Geopolitical concerns and volatile client-activity levels may hinder the top-line growth of Goldman. Further, legal hassles and higher dependence on overseas revenues remain other headwinds.”


Ticker Company EPS Forecast
GS Goldman Sachs $10.11
PNC PNC $3.38
TFC Truist Financial Corp $1.09
HON Honeywell International $2.01
GE General Electric $0.51
PLD ProLogis $0.47
VFC VF $1.16
JBHT J B Hunt Transport Services $1.79
GNTX Gentex $0.42
MAN ManpowerGroup $1.91
SXT Sensient Technologies $0.80
ABCB Ameris Bancorp $1.17
ACKAY Arcelik ADR $0.68
BMI Badger Meter $0.50


Today’s Market Wrap Up and a Glimpse Into Wednesday

A winning streak on Wall Street came to a screeching halt today after all three of the major indices finished in the red. The Dow Jones Industrial Average, S&P 500 and Nasdaq all ended the day lower after Monday’s record session.

The Nasdaq fell more than 1% as tech stocks tumbled. Investors appear to be taking some profits after five days of gains.

Technology leaders reported their earnings after the closing bell, including Google parent Alphabet, Microsoft and Apple. All three companies shined in different areas, while revenues were strong all around.

Durable Goods orders for items such as vehicles and appliances increased last month, the latest data show, in yet another sign that the economic recovery is in full swing. Supply-chain constraints continue to be a problem, however.

The results buoyed General Electric shares, which climbed 1% higher. GE also reported Q2 earnings, and its aviation division is poised to benefit from a rebound in the travel industry.

The FOMC began a two-day meeting today. And while inflation will no doubt be at the center of the discussions, economists are not expecting any surprises. Stock index futures are under pressure, with the Dow Jones, S&P 500 and Nasdaq all moving lower. Dow futures are down nearly 100 points on Tuesday evening.

Stocks to Watch

  • Apple’s earnings were better than expected, while iPhone sales increased 50% vs. year-ago levels to USD 39.6 billion. The stock is down more than 1% in extended-hours trading as investors worry if Apple can keep the good times rolling, especially in light of chip supply issues.
  • Microsoft just flipped green in after-hours trading with the stock up 1%. The company outperformed analyst estimates on the top and bottom lines. Fourth-quarter revenues soared more than 20% to USD 46.2 billion. Microsoft has a market cap of USD 2.15 trillion.
  • Google parent Alphabet far exceeded Wall Street estimates and benefited from robust online advertising sales.

Look Ahead

The earnings parade is far from over, with Facebook, PayPal, McDonald’s and more all on tap for Wednesday. In addition, Dow stock Boeing will unveil its Q2 results before the opening bell. The company is widely expected to report a loss as it continues to grapple with 787 jet airliner setbacks.

Quarterly Revenue Growth Lifts General Electric

General Electric Co. (GE) is trading at a 4-week high in Tuesday’s pre-market after beating Q2 2021 estimates by a few pennies and reaffirming fiscal year 2021 guidance. The struggling conglomerate posted a profit of $0.05 per-share, $0.02 better than consensus, while revenue rose a modest 3.1% year-over-year to $18.3 billion. GE raised its 2021 free cash flow outlook to the $3.5 billion to $5.0 billion range, about $1 billion higher than previous estimates.

Selling Unprofitable Divisions

The company is shedding unprofitable businesses after years of declining revenue, with a $30 billion sale of the aircraft leasing business to AerCap Holdings N.V. (AER) the latest divestiture. The pandemic threw a wrench in this multiyear pruning process but GE has survived supply disruptions and is now back on track. Even so, no one in their right mind believes this fossil from another era can grow enough revenue to restore its lost reputation as a capitalist powerhouse.

General Electric will complete a one-for-eight reverse split after Friday’s closing bell, lifting the stock price above the psychological $100 level. This oddly-timed move will reduce outstanding shares to just over one billion but is likely to have little or no effect on price action. In fact, the transaction is sending the wrong signal to Wall Street because reverse splits are typically used by struggling companies that are worried about delisting or bankruptcy.

Wall Street and Technical Outlook

Wall Street consensus has modestly improved so far in 2021, lifting to an ‘Overweight’ rating based upon 12 ‘Buy’, 1 ‘Overweight’, and 8 ‘Hold’ recommendations. Price targets currently range from a low of $5 to a Street-high $21 while the stock is set to open Tuesday’s session about $1.50 below the median $15 target. Potential upside through the third quarter appears limited, given proximity to the median target and a ceiling of resistance at $14.50.

General Electric ended a four-year decline at a 28-year low in March 2020 and turned higher, mounting the February 2020 peak at 13.26 in February 2021. The breakout failed immediately, yielding months of sideways action that’s been crisscrossing the contested level repeatedly. The stock is trading at the dead center of this pattern on Tuesday, offering mixed messages to shareholders. A rally over 14.50 is needed to overcome this barrier while a decline through the July low at 11.82 could generate much greater downside.

For a look at all of today’s economic events, check out our economic calendar.

Disclosure: the author held no positions in aforementioned securities at the time of publication. 

Marketmind: What If Transitory Is Not so Transitory After All?

On Thursday, Michael Saunders became the second Bank of England rate setter in two days to signal it may be time to consider reining in stimulus as inflation ramps up. Earlier this week central banks in Canada and New Zealand took steps towards unwinding post-crisis stimulus.

No surprise then that two-year gilt yields shot up 6 basis points after Thursday’s BoE comments in the biggest one-day jump since February. In contrast, U.S. bond yields continue to be pinned down by Fed chief Jerome Powell’s dovish rhetoric.

But another run of strong data could test the Fed’s resolve too; figures due later this session are expected to see U.S. June retail sales rose in June after declining in May.

In the meantime, equity markets are struggling to hold their nerve in the face of a continued surge in coronavirus infections globally.

Japan’s benchmark Nikkei share average fell below the psychologically key 28,000 mark and MSCI’s Asia stock index, excluding Japan, was last down 0.3%.

European and U.S. stock futures were mixed.

The dollar was headed for its best weekly gain in about a month, supported by investors’ drift toward safety.

Oil prices were a touch weaker, staying under pressure after a compromise deal between leading OPEC producers and a surprisingly poor weekly reading on U.S. fuel demand.

Key developments that should provide more direction to markets on Friday:

– BOJ cuts growth forecast, unveils climate scheme plan

– Ericsson Q2 earnings below market estimates; Burberry reports “excellent start” to its new year, with full-price sales accelerating; Puma raises 2021 outlook nASN001G8Y]

– German car registrations

– U.S. bond sales data

– Federal Reserve events:  New York Fed President John Williams speaks

– U.S. earnings: State Street, Honeywell, General Electric

– European earnings: Sandvik, Adtech, Husquarna, Handelsbanken, Swedbank, Richemont trading statement,

-Fitch to review Greek rating

For a look at all of today’s economic events, check out our economic calendar.

(Reporting by Dhara Ranasinghe; Editing by Sujata Rao)


EU Antitrust Regulators to Decide on AerCap’s $30 Billion Ge Deal by July 26

The world’s two largest aircraft leasing companies are seeking to create a new financing giant which would be the largest buyer of jetliners built by planemakers Airbus and Boeing.

The deal will reshape a global air finance industry that has attracted a flood of capital in recent years as investors look for higher returns.

AerCap requested EU approval on Friday.

The EU competition enforcer can approve the deal with or without concessions or it can open a four-month investigation if it has serious concerns.

Analysts said the scale of the combined entity, controlling about three times the number of aircraft as its nearest competitor, Dublin-based Avolon, could force AerCap to offload aircraft to meet antitrust demands.

(Reporting by Foo Yun Chee; Editing by Edmund Blair)

General Electric Reports Smaller Cash Outflow, Reaffirms 2021 Outlook

By Rajesh Kumar Singh and Ankit Ajmera

The company also reaffirmed its full-year free cash flow and earnings per share outlook.

Tuesday’s earnings report, however, disappointed investors who were expecting the industrial conglomerate to upgrade its 2021 outlook.

The improvement in earnings at power and renewables businesses was also not as strong as some analysts were expecting.

GE’s shares, which have gained over 145% since last May, were down 2.80% at $13.19 in pre-market trade.

The Boston-based company reported a cash outflow of $845 million compared with an outflow of $2.2 billion last year. Analysts surveyed by Refinitiv, on average, expected a cash outflow of $1.3 billion.

The first quarter tends to be GE’s slowest period of the year. However, improved earnings from a year ago and better working capital helped slow the cash burn.

The company expects a similar year-on-year improvement in cash flow in the current quarter.

Free-cash flow is closely watched by investors as a sign of the health of GE’s operations and ability to pay down debt.

Its jet-engine business, usually GE’s cash cow, is still reeling from the plunge in global air travel. The unit generated revenue of $4.99 billion during the quarter, down 28% from a year ago and below analysts’ estimate of $5.31 billion, according to IBES data from Refinitiv.

GE reported $17.12 billion in revenue, down 12% year-on-year, and lower than $17.5 billion estimated by analysts in a Refinitiv survey.

On an adjusted basis, it earned 3 cents per share in the quarter, compared with 2 cents per share a year earlier.

(Reporting by Rajesh Kumar Singh in Chicago and Ankit Ajmera in Bengaluru; Editing by Saumyadeb Chakrabarty, Steve Orlofsky and Nick Zieminski)

GM Further Cuts Production in North America Due to Global Chip Shortage

By Ben Klayman

The U.S. automaker said its Wentzville, Missouri, assembly plant would be idled during the weeks beginning March 29 and April 5. It will extend down time at its plant in Lansing, Michigan, which has been idled since March 15, by two weeks.

The action was factored into GM’s prior forecast that it could shave up to $2 billion off this year’s profit, spokesman David Barnas said. GM did not disclose how much volume would be lost by the move, but said it intended to make up as much lost production as possible later in the year.

The chip shortage came as North American auto plants were shut for two months during the COVID-19 pandemic last year and chip orders were canceled, and as demand surged from the consumer electronics industry as people worked from home and played video games. That’s now left carmakers competing for chips.

Semiconductors are used extensively in cars, including to monitor engine performance, manage steering or automatic windows, and in sensors used in parking and entertainment systems.

Vehicles affected by the GM production cuts include the mid-sized pickup trucks, the Chevrolet Colorado and GMC Canyon in Missouri, and the Cadillac CT4 and CT5 and Chevy Camaro cars in Michigan.

Meanwhile, GM said its San Luis Potosi, Mexico, assembly plant, idled since Feb. 8, will resume production with two shifts beginning the week of April 5.

Also on Wednesday, Ford Motor Co said it would cut output this week of the Transit van at its Kansas City, Missouri, assembly plant due to the shortage. Production of the flagship F-150 pickup at the plant is not affected.

Last week, GM said it was building certain 2021 light-duty full-size pickups without a fuel management module, hurting their fuel economy performance by one mile per gallon.

Ford and Stellantis have said they would partially assemble and park their large pickups to finish later when chip supplies allow.

Japanese automaker Honda Motor Co on Tuesday said it would further cut North American production due to supply-chain issues, including the chip shortage.

Exacerbating the shortage was a recent fire at a Renesas Electronics chip plant in Japan. Barnas said GM was assessing the impact of the blaze. Ford is doing the same, while Stellantis and Mazda said their operations have not yet been affected.

German auto supplier Continental said it was assessing the impact of the fire and was in “daily contact” with Renesas.

“We are considering all possible measures, including the evaluation of other alternative technical solutions,” Continental said in a statement.

(Reporting by Ben Klayman in DetroitEditing by Bernadette Baum)

Why Shares Of General Electric Are Down By 6% Today?

General Electric Video 10.03.21.

General Electric Stock Falls After Company Cuts Earnings Guidance

Shares of General Electric found themselves under pressure after the company announced that its full-year earnings per share would be $0.15 – $0.20 compared to its previous guidance of $0.15 – $0.25.

The stock was moving higher ahead of the company’s Investor Day so the market expected that the company’s actual results in 2021 would be closer to the higher end of the original guidance. In this light, the new guidance served as a material bearish catalyst for the stock.

In addition, the company recommended a 1-for-8 reverse split in order to decrease the number of shares outstanding. At 8.77 billion, General Electric’s share count is huge, so this move makes sense.

Traders are also taking a close look at the company’s decision to combine its GE Capital Aviation Services with AerCap, whose stock has recently gained ground on rumors about the upcoming deal.

What’s Next For General Electric?

Assuming that General Electric meets its earnings guidance in 2021, its stock is currently trading at a forward P/E for 2021 of  65 – 87. Analysts expect that the company’s performance will materially improve in 2022 and 2023, but they may be pressed to revise their forecasts after the recent guidance cut.

Shares of General Electric have been steadily moving higher in 2021, so the market was not prepared to hear any disappointing news as it looked like the company was headed in the right direction.

The AerCap deal may be serving as an additional negative catalyst in the near-term as the deal is complex and General Electric may need time to get positive results out of this combination. In addition, the deal will likely have to go through some regulatory hurdles which may take up to a year.

At the same time, the stock has pulled back materially from recent highs and may attract those traders who missed the recent upside move and were waiting for such an opportunity.

For a look at all of today’s economic events, check out our economic calendar.

General Electric Losing Altitude After Aircraft Leasing Sale

General Electric Co. (GE) is trading lower by more than 3% in Wednesday’s pre-market after AerCap Holdings Inc. (AER) announced an agreement to acquire aircraft leasing division GE Capital Aviation Services. GE will receive 111.5 million newly issued shares in the deal, along with more than $24 billion in cash, and own 46% of AER after closing the transaction. The partial merger will require regulatory approval, which is expected by the fourth quarter of 2021.

Reverse Split Approved

The GE board also approved a 1-for-8 reverse split that will lift the stock price above 100. There are currently 8.74 billion shares outstanding, with a float of 8.71 billion. The new pricing and float will make short selling more attractive, with current daily average volume at nearly 80 million shares and a short float of less than 1%. That’s a two-edged sword for future price action because bad short bets could stoke the upside.

CEO Larry Culp issued an upbeat statement after the news, noting “I remain confident we will deliver value for GE’s shareholders, employees, customers, and communities for the long term. We are excited to shift more toward offense, investing in breakthrough technologies to serve the needs of our customers and the world—for more sustainable, reliable, and affordable energy; more integrated and personalized healthcare; and smarter and more efficient flight.”

Wall Street and Technical Outlook

Wall Street consensus has improved in the last year, yielding an ‘Overweight’ rating based upon 14 ‘Buy’, 7 ‘Hold’, and no ‘Sell’ recommendations.  Price targets currently range from a low of $5.00 to a Street-high $21.00 while the stock is set to open Wednesday’s U.S. session less than $1.00 above the median $13.12 target. The bearish reaction to the deal likely reflects continued skepticism and a wait-and-see attitude about GE’s long-term outlook.

General Electric completed a double bottom last week, confirming the end of a four-year downtrend. It’s risen 255% since May 2020 and is trading above the 200-week moving average for the first time since 2017. However, the new uptrend has a long way to go because, despite progress, the stock is still situated below the .382 Fibonacci selloff retracement level. Reward: risk is turning against long positions at current levels, with major resistance between 15 and 20.

For a look at all of today’s economic events, check out our economic calendar.

Disclosure: the author held no positions in aforementioned securities at the time of publication. 

Why Shares Of General Electric Continue To Move Higher?

General Electric Video 04.03.21.

General Electric Stock Gets A Boost From Analyst Upgrades

Shares of General Electric have started the year on a strong note and gained about 25% year-to-date. Today, the stock tested multi-month highs at the $14 level after Morgan Stanley upgraded the company’s shares and changed its price target from $13 to $17.

Morgan Stanley believes that the upcoming investor day presentation, which is scheduled to take place on March 10, will serve as an additional upside catalyst for the stock.

Earlier, UBS increased its price target for General Electric stock from $14 to $15 which also provided significant support to the company’s shares.

In late January, General Electric released its fourth-quarter report which beat analyst estimates on both earnings and revenue. The company delivered solid cash flow performance, and the market continued to buy the turnaround story.

What’s Next For General Electric?

The current rally of General Electric stock started back in October when traders began to pay more attention to cyclical stocks. The rally continued month after month and pushed the company’s valuation to high levels. Currently, General Electric shares are trading at more than 25 forward P/E for 2022 which looks like a rich valuation for an estabilished cyclical company.

However, the market believes that the upcoming U.S. economic stimulus package and the ultimate improvements on the coronavirus front will provide enough support to the company’s business. In addition, General Electric’s performance is expected to improve in the next several years which is bullish for the stock.

The near-term fate of General Electric stock will depend on whether cyclical stocks will remain strong amid inflation fears, which are highlighted by the recent increase in the U.S. government bond yields.

If the market continues to buy cyclical stocks, General Electric stock will have a great opportunity to develop additional downside momentum as the company also has internal upside catalysts.

For a look at all of today’s economic events, check out our economic calendar.

General Electric Moves Higher On Strong Q4 Free Cash Flow Performance

General Electric Video 26.01.21.

General Electric Shares Gain Ground After The Release Of Q4 Earnings Report

General Electric stock is up by more than 5% in today’s trading session after the company provided its fourth-quarter earnings report.

General Electric reported fourth-quarter revenue of $21.9 billion and adjusted earnings of $0.08 per share, beating analyst estimates on revenue and missing them by $0.01 on earnings.

Traders focused on the company’s improved free cash flow performance. The company recorded free cash flow of $4.4 billion in the fourth quarter, driven by working capital movements and improving Renewables and Power orders.

General Electric managed to improve its free cash flow performance despite the challenges posed by the coronavirus pandemic, and the market rewarded the company by pushing its shares to multi-month highs.

Analysts expect that General Electric’s earnings performance will continue to improve in the upcoming years, and the fourth-quarter earnings report suggests that the company is moving in the right direction.

General Electric Stock May Move Towards 2020 Highs In Case Sector Rotation Continues

Shares of General Electric finished the year 2020 on a strong note as sector rotation provided significant support to industrials in the last months of the previous year.

However, the stock has not reached 2020 highs as the continued problems on the coronavirus front around the world continue to weigh on market sentiment.

As S&P 500 is at all-time highs, investors and traders actively search for stocks which have not reached exorbitant valuations. In this situation, General Electric’s successful turnaround story and increased sector rotation may push the company’s shares to new highs.

However, it should be noted that General Electric’s performance remains heavily dependent on the developments in the real economy while a material stake in Baker Hughes makes the company’s shares sensitive to oil price dynamics.

In this light, General Electric stock will likely need additional positive news on the vaccine front for sustainable upside in the near term as markets served by the company will clearly benefit from improvements on the healthcare front.

For a look at all of today’s economic events, check out our economic calendar.

Revisiting Our October 23 Four Stocks To Own Article – Part I

Just before the US Elections, we authored an article related to four stocks/sectors that we thought would do well immediately after the November 2, 2020 elections.  The article highlighted how sector rotation in almost any market trend can assist traders in finding solid trading triggers.  We picked four stocks from various sectors for this example:

AAL American Airlines Travel/Leisure
ACB Aurora Cannabis Cannabis
GE General Electric Industrial/Specialty Industry
SILJ Junior Silver Miners ETF Precious Metals Miners

When you review my article from October 23 and the November 6 follow up article related to these stock picks, you will quickly see that all of these stocks exhibited similar types of technical patterns.  They were all bottoming in an extended rounded bottom formation and had all started to near a Pennant/Flag Apex in price.  Additionally, many of them, with the exception of SILJ, had set up a very clear RSI technical divergence pattern over the course of setting up the extended bottom in price.

My research team and I selected these stocks because of key expectations related to the post-election mentality of investors related to various sectors.  First, the cannabis sector had a number of new US states approve cannabis legislation – providing for an expected increase in business activity for the entire cannabis sector.  Second, no matter who won the election, another round of stimulus was likely to be approved resulting in increased economic opportunity for companies like GE and AAL.  The Travel and Leisure sector still had its risks as a surge in COVID cases could greatly disrupt future travel expectations.  Junior Silver Miners was our “hedge trade”.  If none of these other stocks started to rally, then Silver Miners would likely move 15% to 20%+ higher over time.

We thought it would be a good time to check in with our picks to share the importance of using sector trends to your advantage.  Currently, there are dozens of sectors that are either in a solid bullish trend or are shifting into new bullish trends.  Being able to catch these setups early and having the confidence to act on these trends is very important. We highlighted some of these setups in our October 23 article, but they happen all the time in various market sectors.

What is important is being able to see the setups, identify the sectors that have the strongest capability for future trends, then determining if you should trade the Sector ETF or some individual stocks within that sector.  Generally, the Sector ETFs provide enough liquidity and opportunity that you don’t need to worry about the individual stocks.  Yet, sometimes, applying the same techniques to the strongest sector stocks can add a very valuable component to your trading.

Below, we have highlighted the accomplishments of each stock symbol over the past 60+ days.  For this example, we will estimate a $20k allocation for ALL TRADES ($5k each) and use a simple 33% target allocation for Target 1, Target 2, and the Trailing Remainder.  That means, we take 33% of the position off at Targets 1 and 2, then let the remaining 33% trail with a protective stop.

Symbol Entry Price Target 1 % Target 2 % Last Price %
AAL $12.60 39.81% NA 22.44%
ACB $4.68 124.35% NA 114.72%
GE $7.63 22.77% NA 48.56%
SILJ $14.68 NA NA 10.11%

Our $20k sample account would look something like this right now…

Symbol Entry Price Target 1 $ Target 2 $ Last Price $
AAL $12.60 $656.87 NA $6,408.61
ACB $4.68 $2,068.28 NA $10,802.59
GE $7.63 $375.71 NA $6,995.44
SILJ $14.68 NA NA $5,505.50
Total => $29,712.14

Overall, this represents a +48.5% net account profit in just over 60 days by focusing on sector trends and rotations.  In the future, if any of our higher Target levels are reached, we’ll pull another 33% of these trades and lock in these gains while we let the remaining position carry forward with a trailing stop.  The trailing stop should be based on the last completed target level reached.  For example, if Target 1 is reached, then the stop should be placed just below the Entry Price level.  If Target 2 is reached, then the stop should be placed just below the Target 1 level and it should begin to trail higher as new price highs are reached.

Usually, we will pick an exit price level based on some type of trend failure or reversal point.  In most cases, this happens when the longer-term (Weekly based) moving averages change direction and price activity displays a clear technical pattern showing the bullish trend has ended.  Most traders are capable of determining their own exit points using technical indicators and other tools as they wish.

When some sector is trending very strongly, we don’t want to attempt to second guess the peak level or end of the trend.  We just want to ride that trend for as much profit as we can – unless some other sector sets up a new opportunity where we can better deploy our assets for profits. We like to let the trend work itself to an eventual end and use our Target Levels to lock in gains along the way.

American Airlines Trade

The following Weekly chart of American Airlines (AAL) highlights the simple trade we suggested on October 23, 2020.  As you can see, the upward sloping lows in price aligned with the upward sloping RSI trend (in the lower pane).  AAL has reached our first target level (the MAGENTA line) and has recently settled near $15.13.  Our stop level should be just below our entry price level, near or below $12.60 at this time as we wait to see how the bullish trend continues.

In Part II of this article, we’ll go over the remaining three stock symbols we initially suggested on October 23, 2020 and highlight even more details related to sector trending.

Many years ago I was researching Japanese Candlesticks and the teaching of Seiki Shimizu (The Japanese chart of charts: Shimiz) settled well with my thinking.  In his writing, he suggests that more than 60% of the time traders are waiting for new setups/trades.  This is something that many traders need to fully understand in order to balance aggressive trading tendencies with their abilities to create profits and protect assets.

If this theory is correct, then trades only need to focus on the 30% to 40% of any 12-month span of time  (three to four months) where the bigger sector trends/trades setup and initiate.  Otherwise, these trends may continue, in some form, over the remainder of the time to generate profits (or not).  This type of thinking suggests that traders only need to focus on the best immediate setups in any market trends/sectors and ignore the “froth” in the markets on a day-to-day basis.  Doing so will allow most traders the freedom to create profits by taking skilled and effective entry triggers while being able to enjoy life, family, and other hobbies.

Trading does not need to be a full-time, 24/7 effort.  The global markets generate big sweeping sector trends sometimes 2 to 4 times a year as capital moves in and out of various trend cycles (short, intermediate, and long term).  All we have to do is find the best sectors to trade, then wait for the trigger/entry setup. Now, imagine what it would be like if you could accomplish something like this every week or month with technology? You can with my BAN Trader Pro strategy and Hotlist.

BAN Trader Pro can help you identify and trade the Best Asset Now.  The BAN Hotlist helps us identify the strongest and best trade setups in any market sector.  Every day, we deliver these setups to our subscribers along with the BAN Trader Pro system trades.  You owe it to yourself to see how simple it is to profit from sector rotation with my strategy. You can sign up here for my 100% educational webinar for free.

For a look at all of today’s economic events, check out our economic calendar.

Have a great week!

Chris Vermeulen
Chief Market Strategist


General Electric Up 70% In The 4th Quarter

General Electric Co. (GE) rallied to an 8-month high in the first hour of Tuesday’s U.S. session following an Oppenheimer upgrade. The stock has risen more than 70% so far in the fourth quarter, underpinned by growing optimism the four-year downtrend has finally come to an end. The former icon of innovation fell an astounding 82% from the 2016 high into May 2020’s 29-year low, and more than 92% since posting an all-time high in August 2000.

GE Paying Off Old Debts

The company is working off an enormous debt load after years of bad management. The crash in bond yields is making the job easier, along with key personnel changes designed to end a near-comatose corporate culture. Unfortunately, bad timing is playing a role in GE’s recovery because the aviation division is posting huge losses due to the collapse in air travel and MAX-737 grounding. Fortunately, that crisis will ease as we get closer to wide-scale vaccine distribution.

Oppenheimer analyst Christopher Glynn upgraded General Electric from ‘Market Perform’ to ‘Outperform’, setting a price target of $12 while noting the “rating reflects our view of more pointed read-through of cost reduction initiatives, resulting in early stages of clearer breadth of operating momentum across segments. We believe working capital performance could surprise to the upside in 2021, considering GE is working through widespread facility consolidations and managing working capital amidst that during 2020”.

Wall Street And Technical Outlook

Wall Street is finally jumping on board the bull train, with a ‘Moderate Buy’ rating based upon 8 ‘Buy’ and 5 ‘Hold’ recommendations. No analysts are recommending that shareholders close positions and move to the sidelines. Price targets currently range from a low of $5 to a Street-high $12 while the stock is trading about $1.30 below the high target. This placement makes sense because this is a long-term recovery play rather than a short-term trading vehicle.

General Electric undercut the 2018 low at 6.40 during the pandemic decline, reversing after trading just below the 2008 low at 5.51. The uptick that started in the fourth quarter has established a ‘2B’ buy signal while continued upside that reaches or exceeds the February 2020 high at 13.26 will confirm a bullish double bottom reversal. That level has come into narrow alignment with the 200-week EMA, with a breakout establishing the first uptrend since 2016.

For a look at all of today’s economic events, check out our economic calendar.

Disclosure: the author held no positions in aforementioned securities at the time of publication.


Four Stocks To Consider Buying Before The US Elections

Our research team put together this list of stocks to help you understand how to attempt to target strategic gains between now and 30 to 60 days after the elections. If you have not been paying attention to what is happening in the markets right now, be sure to read to the end of this report.

If you have not already prepared for the election event, and the pending chaos that is likely to happen after the elections, you better start doing something to protect your portfolio right now. Leaving your portfolio exposed in the moderate to high risk sectors in your IRA or 401k could result in some wicked risks to your total capital if you are not cautious.


Personally, I’ve been getting calls from my family and friends over the past few weeks urgently asking me “what should I do with my retirement money?” and “how should I protect my assets before the elections?”. My family knows if they do nothing to protect their capital, the could be exposed to a -20% or -30% draw down if the market moves lower after the election. We don’t know of anyone that wants to ride out another -20% to -30% correction in the markets – right?

Well, if you are interested in taking a small portion of your capital and attempting to profit from these four simple stock picks we’ve identified, you may feel quite a bit better about how you managed your capital throughout the election event and over the next 30 to 60+ days.

First off, each of these symbols targets key benefits we believe will take place (or have a moderately high likelihood of taking place) after the elections. Secondarily, each of these symbols has setup a very clear technical pattern that suggests “the bottom is in”. Lastly, we’re only including FOUR symbols that we feel are properly hedged for risk – we’ll explain everything in more detail as we go through each symbol. Each of these chart will show very clear support levels in BLUE on each chart. Use your best judgment to identify proper stop levels for each of these setups. You must allow room for the trade to mature and initiate a rally attempt in order to secure the profit potential. It should be fairly easy to see the opportunities in each of these picks. Let’s get started.

American Airlines: AAL Weekly Chart

Airlines are going to benefit from the stimulus package that will be secured shortly after the elections. One way or another, the US government must support essential transportation services through any extended economic shutdown or further COVID economic collapse. There will be some rescue package for the airline sector, we believe, within 30 days after the elections.

The basing support level, shown by the lower BLUE line on this Weekly chart, highlights the upward price trend that we believe support another attempt at a price breakout (higher). We believe the news of a stimulus package that supports an Airline rescue plan will prompt a moderately strong upside price move that could target +35% to +65% levels from the current $12.72 price levels. Ultimately, key resistance exists near the $28.50 level. Therefore, we believe this resistance level will act as a major future price ceiling going forward.

Aurora Cannabis: ACB Weekly Chart

The cannabis sector may benefit from a change at the state and local government level. The extended basing support level and Pennant/Flag formation, shown by the lower BLUE lines on this Weekly chart, highlights the upward price trend that we believe supports a price breakout attempt (higher). We believe the potential for ACB to begin a new rally will initiate shortly after the US elections and will prompt a moderately strong upside price move that could target +115% to +235% levels from the current $4.88 price levels. Ultimately, key resistance exists near the $32.76 level. Therefore, we believe this resistance level will act as a major future price ceiling going forward.

General Electric: GE Weekly Chart

General Electric Company may benefit from any new infrastructure plans related to new policy/plans on the federal/state level. The extended basing support level and Pennant/Flag formation, shown by the lower BLUE lines on this Weekly chart, highlights the upward price trend that we believe supports a price breakout attempt (higher). We believe the potential for GE to begin a new rally will initiate shortly after the US elections and will prompt a moderately strong upside price move that could target +25% to +55% levels from the current $7.39 price levels. Ultimately, key resistance exists near the $18.05 level. Therefore, we believe this resistance level will act as a major future price ceiling going forward.

Silver Miners Juniors: SILV Weekly Chart

Junior Silver Miners are the “Hedge Trade” component for this simple portfolio. We believe Silver and Silver Miners will initiate a new upside price rally very shortly after the US elections and we believe this trade is an efficient “hedge” to the risk associated with the other three symbols in this simple portfolio. The extended basing support level and Pennant/Flag formation, shown by the lower BLUE lines on this Weekly chart, highlights the upward price trend that we believe supports a price breakout attempt (higher).

Silver miners should perform well once the price of gold starts a new uptrend and starts to rally towards $2200 price level. Fibonacci extension measured moves allow you to forecast where gold should rally to next as shown in this Sept 23rd article. We believe the potential for SILJ to begin a new rally will initiate shortly after the US elections and will prompt a moderately strong upside price move that could target +35% to +65% levels from the current $14.98 price levels. Ultimately, key resistance exists near the $32.95 level. Therefore, we believe this resistance level will act as a major future price ceiling going forward.

Concluding Thoughts:

We hope you find the value in these four simple picks we have presented and understand how you can help to protect your investment portfolio by allocating a small portion of your portfolio into these opportunities. There is no guarantee that these picks will rally as we expect. There is no guarantee that the COVID-19 infections won’t skyrocket again – potentially shutting down the global economy again. You have to use your skills and abilities to manage these trades ON YOUR OWN. We are just showing you four potential trade setups that we believe have a strong likelihood of initiating an upside price move near or after the US elections. We hope you strongly consider the message we are trying to convey to you – protect your assets and prepare for extended volatility.

For a look at all of today’s economic events, check out our economic calendar.

Chris Vermeulen

Chief Market Strategies