Here’s what to look for in the action today…
General Trends
Yesterday was one of the most boring, uneventful days of the year for the stock market. But boring action – during an uptrend – is bullish. It usually leads to even higher prices. The momentum remains bullish, and we’re looking for even higher prices later this week.
If you’re new to the Market Minute, here we look at how the major markets are setting up for the day… and plan our trades.
Starting with stocks…
Stocks
My minimum target for the S&P 500 is 2411. A strong rally could power the index as high as 2442.
Oil stocks helped the market by pushing higher yesterday – even as the price of oil had a tough time holding onto early gains. If oil stocks can continue to bounce – which I think they will for the next day or two – that should keep a bid beneath stock prices.
Lots of retail stocks are set to announce earnings later this week. The bar is set so low for this group that no matter how dismal the reports, the retail sector will likely respond favorably. That should help the broad stock market press higher as well.
But, once oil stocks bounce, and once retail earnings reports are out of the way, it’s hard to see another positive catalyst for the stock market. We’ll worry about that later this week.
For today, the bulls have the ball.
Gold and Gold Stocks
The gold sector looked good yesterday. Most mining stocks traded lower early in the day. But the VanEck Vectors Gold Miners Fund managed to rally back and close nearly unchanged. That’s positive action – especially since gold and silver traded lower.
The mining sector looks close to forming a bottom. Adding some exposure to the sector looks like a good, low-risk idea at this level.
Earnings Reports
I’ve been working on a new system designed to trade stocks around their earnings announcements. I traded the system 41 times over the past year with my own money. 37 of the trades were profitable, with average gains of almost 50%. And the average time in the trades was less than two days.
I’m not quite ready to reveal the system to Delta Report subscribers. But it will likely trigger one or two trades in the retail sector this week. So, I’ll probably make one or two unofficial recommendations to subscribers who don’t mind being guinea pigs.
If all goes well, then we’ll be a step closer to launching the system – just in time for the next earnings season in July.
I’ll provide updates on my progress here in the Market Minute, so stay tuned…
Best regards and good trading,
Jeff Clark
P.S. I love to hear your feedback. Send any questions, concerns, or great trading stories to me right here.