Market Direction Mid Week: Renewed Trade Talk

The trading strategy this website uses as its signature tool is our bullish and bearish alerts. This indicator has effectively been used with accuracy since 2011. The website helps our followers stay in tune with the stock market and profits have been amazing. This post provides a mid-week update on how the stock market has preform. At the bottom of this post are the all-time numbers since the current alert was made. The current bullish alert is moving in the right direction.

Market Direction: BULLISH alert issued 10/24/2019

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U.S. stocks closed higher for the first time in four sessions following a report that a phase-one trade U.S.-China trade deal was still in the works, helping to offset fears of a delay sparked a day earlier by President Donald Trump’s remarks.

What did the major benchmarks do?

The Dow Jones Industrial Average DJIA, +0.53% rose 146.97 points, 0.5%, to 27,649.78. The S&P 500 index SPX, +0.63% added 19.56 points, or 0.6%, to close at 3,112.76. The Nasdaq Composite Index  COMP, +0.54% advanced 46.03 points, or 0.5%, to end the session at 8,566.67.

What drove the market?

U.S. stock-index benchmarks recovered some of the week’s lost ground after Bloomberg News, citing sources familiar, reported that Beijing and Washington were making progress toward a phase-one trade pact. The comments also helped to provide a lift to European equities.

Bloomberg’s report said any partial resolution on trade would be complete before another set of China tariffs kick in on Dec. 15. The news comes after stocks broadly slumped on Tuesday following a President Trump news conference in London, where he indicated there was “no deadline” when it comes to concluding the nearly two-year-old U.S.-China trade spat. He made those comments at a NATO meeting.

“While yesterday, the odds of an imminent trade deal seemed slim in the wake of the President’s hawkish words, we got upbeat reports regarding the state of the negotiations overnight,” wrote Ken Berman, strategist at Gorilla Trades, in a note.

“Even though the large-cap benchmarks are still well below last week’s all-time highs, the Volatility Index VIX, -7.27%  plunged back below the 15 level while small-caps are keeping up with the broader market, which both point to healthy risk appetite,” he added.

Read: What a ‘no-deal’ U.S.-China trade scenario would mean for stocks and bonds

Meanwhile, stocks shrugged off a report on U.S. private-sector hiring Wednesday morning. Employers added just 67,000 workers in November, payroll processor ADP said, a much weaker reading than analysts had forecast, made worse by downward revisions to earlier months.

A reading on the service sector of the U.S. economy was mixed: the Institute for Supply Management’s nonmanufacturing index was at 53.9%, lower than in October, but new orders were at 57.1%, up from 55.6% and signaling stronger demand ahead. A similar survey from IHS Markit for the service sector showed an improvement in November though with its index rising to 51.6 in November from 50.6 in October.

How did other markets fare?

The yield on the 10-year U.S. Treasury note TMUBMUSD10Y, -0.19% rose 6.2 basis points to 1.770% on the swing in hopes for a U.S. - China trade deal.

Oil futures rallied Wednesday after U.S. government data showed the first decline in U.S. inventories in six weeks. Traders also awaited meetings OPEC and its allies set for Thursday and Friday. West Texas Intermediate crude for January delivery CLF22, +1.21%  on the New York Mercantile Exchange rose $2.33, or 4.2%, to settle at $58.43 a barrel.

Gold for February delivery GCG20, +0.02% fell $4.20, or 0.3%, to settle at $1,480.20 an ounce on Comex.

The U.S. dollar, as measured by the ICE U.S. Dollar Index DXY, -0.07%, fell 0.1% at 97.61 against a basket of a half-dozen currency peers.

European stocks closed higher, with the Stoxx Europe SXXP, +1.18% up 1.1%, to 403.19.

In Asia overnight, the Hang Seng HSI, -1.25%  fell 328 points, 1.3%, and the China CSI 000300, -0.03%  ticked down 1.3 points to 3,849.82.

Related: Don’t get so excited, this economist says—the trade news isn’t that good

$tockMarketDirection proprietary model is currently BULLISH. We strongly encourage you to monitor positions closely, exercise proper money management strategies and follow us at  $tockMarketDirection for ALERTS we may issue advising a change in the current market direction. Stay tuned and follow us. If you have a testimonial or comment of how this website has helped you we would like to know, email us. Share with friends.

The all-time highs since our initial recommendation to go LONG this market. Here is how the markets have performed:

Stock Market Direction Recommendation (10/24/2019)
Dow	up 1,369.44 points a 5.11% gain	11/27/19
Nasdaq	up 520.11 points a 6.35% gain	11/27/19
S&P 500	up 143.97 points a 4.78% gain	11/27/19

Related Link: http://www.stockmarket-direction.com/