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Market Insights

Bringing you the trading news around the world.

Inflation Cools as Market Hopes for Debt Ceiling Resolution: Market Trends This Week

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Downloads are available here.

Register for Market Trends here.

Sizing Up the S&P 500

  • Current range: 4050 to 4187
  • Kicker candlestick on Friday
  • Consecutive weekly lows around 4050 suggest higher support in place
  • Index holding near top of range, above 10-day MA
  • Wednesday held Friday’s opening price
  • Environment may resemble late 2019, with high negativity and tight squeeze against resistance.
  • Potential signals from 10-day MA and RSI
  • Debt ceiling solution still unclear
SPDR S&P 500 ETF (SPY), daily chart, with select indicators.

Key Economic News

  • April CPI +4.9% y-o-y vs 5% estimate.
    • Smallest increase since April 2021
    • CME FedWatch expecting at least 50bp of cuts this year
    • CPI now below Fed Funds rate for first time since April 2015
  • Q1 senior loan officer opinion survey shows limited credit contraction

Company News

  • Alphabet (GOOGL) has biggest gain since March on AI push
  • Palantir (PLTR): earnings, revenue, guidance beat
    • Citi, William Blair analysts skeptical of growth prospects
  • Zscaler (ZS): Earnings, revenue, guidance beat. Bookings seen up 38-39%. (cybersecurity)
  • Duolingo (DUOL): Earnings, revenue beat. (Online learning)
  • Walt Disney (DIS): Earnings miss as streaming subscribers fall.
  • Carvana (CVNA): Squeezes higher on turnaround plan

Some forgotten growth stocks have gapped to new 52-week highs:

  • Shopify (SHOP)
  • Draftkings (DKNG)
  • Uber Technologies (UBER)
  • HubSpot (HUBS)

Signals Scan

  • Salesforce.com (CRM): Ascending triangle breakout
  • Philadelphia Semiconductor Index ($SOX) challenges falling trendline
  • “Death cross” in 10-year Treasury yield ($TNX.X)
  • Mercadolibre (MELI): Range from outside candle after strong earnings
  • Procter & Gamble (PG): Post-earnings pullback to 21-day EMA
  • Unilever (UL): Keltner channel pullback

Mover of the Week: Opera

  • Little known Norwegian web browser with AI potential
  • Earnings, revenue and guidance beat on April 27
  • OPRA +138% YTD

Upcoming Events

  • Tomorrow 5/12: Biden/Congressional talks on debt ceiling
  • Big housing data next week
  • Tuesday 5/16: Retail sales, NAHB homebuilder sentiment
    • Earnings: Home Depot (HD)
  • Wednesday 5/17: Housing starts/building permits
    • Earnings: Target (TGT), Cisco Systems (CSCO)
  • Thursday 5/18: Jobless claims
    • Walmart (WMT)

Using the Platform

Modifying indicators to make talking alerts.

Standardized Performances for ETF mentioned above

ETF1 Year5 Years10 Years
SPDR S&P 500 ETF (SPY)0.95%+57.25%+160.48%
As of April 28, 2023. Based on TradeStation Data.

Security futures are not suitable for all investors. To obtain a copy of the security futures risk disclosure statement Investment and Trading Disclosures Booklet – Futures.

Exchange Traded Funds (“ETFs”) are subject to management fees and other expenses. Before making investment decisions, investors should carefully read information found in the prospectus or summary prospectus, if available, including investment objectives, risks, charges, and expenses. Click here to find the prospectus.

Options trading is not suitable for all investors. Your TradeStation Securities’ account application to trade options will be considered and approved or disapproved based on all relevant factors, including your trading experience. See Characteristics and Risks of Standardized Options.

About the author

David Russell
David Russell is VP of Market Intelligence at TradeStation Group. Drawing on two decades of experience as a financial journalist and analyst, his background includes equities, emerging markets, fixed-income and derivatives. He previously worked at Bloomberg News, CNBC and E*TRADE Financial. Russell systematically reviews countless global financial headlines and indicators in search of broad tradable trends that present opportunities repeatedly over time. Customers can expect him to keep them apprised of sector leadership, relative strength and the big stories – especially those overlooked by other commentators. He’s also a big fan of generating leverage with options to limit capital at risk.

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