BIG News Week

Investor’s first readDaily edge before the open
DJIA: 18,010

S&P 500: 2,107
Nasdaq  Comp.5,070
Russell 2000: 1,246

Monday, June 1, 2015   8:56 a.m.

TODAY:

      Friday the Bulls couldn’t break through resistance at DJIA 18,154 (S&P 500: 2,112 and closed lower for the day.

      But, trends in this market are short-lived, and  the Bulls may give it another shot this week, a lot depends on the flow of economic reports (see below).

      Obviously, this will be a news sensitive week, and a wait and see event. 

      Resistance today is: DJIA 18,050; S&P 500: 2,116; Nasdaq Comp.: 5,090. Failure to break up through these levels indicates a lower market.    

ECONOMIC REPORTS

     This is a  big week for reports on the economy starting with Personal Income/Outlays; PMI Mfg.; ISM mfg.; and Construction Spend today.

     Factory Orders come Tuesday, the ADP Employment data, International trade, PMI Services, ISM Non-Mfg. on Wednesday; Jobless Claims Thursday and  the Employment Situation report and Consumer Credit Friday.

     With a pickup in U.S. housing, it would be nice if other sectors of the economy would pick up.

     Oh, yes,  Greece will be in the headlines this week !!     

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ALERTALERTALERT

     The six months period between Nov. 1 and May 1 has historically been the best six months for the stock market.* The six months between May 1 and Nov. 1 has underperformed. Consistent as this seasonal pattern has been, it must be noted that opportunities to trade against these trends have occurred often.  Analysts and the press will make a lot of noise about this phenom in coming months –  be careful.
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My Technical Analysis of the 30 DJIA Companies:  

On occasion, I technically analyze each of the 30 DJIA stocks  a reasonable risk, a more extreme risk, and an upside potential over the near-term. I add the results of each, then divide by the DJIA “divisor” (0.1498588) to get the DJIA for those levels.
     As of  May 29, a reasonable risk is 17,917; a more extreme risk is 17,660 The upside potential is has dropped with the market’s inability to follow through last week and is now 18,260.  

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KEY EXTERNAL FACTORS: 

-Stock market bubble – China
-Q1 earnings for some companies will suffer from U.S. dollar’s strength and plunge in oil prices.
-Market still keyed on the Fed and it’s first bump up in interest rates, which with a slight softening in recent economic reports looks like it may happen later rather than sooner.
Concern that the U.S. economy is beginning to slump. This week is mixed.

Note: Source of economic data

For a weekly economic calendar and good recap of  indicators, go to mam.econoday.com.

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*Stock Trader’s Almanac

George Brooks
Investor’s first read
A Game-On Analysis, LLC publication

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Investor’s first read, is a Game-On Analysis, LLC publication for which George Brooks is sole owner, manager and writer.  Neither Game-On Analysis, LLC, nor George  Brooks  is  registered as an investment advisor.  Ideas expressed herein are the opinions of the writer, are for informational purposes, and are not to serve as the sole basis for any investment decision. References to specific securities should not be construed  as particularized or as investment advice as recommendations that you or any investors purchase or sell these securities on their own account. Readers are expected to assume full responsibility for conducting their own research pursuant to investment in keeping with their tolerance for risk

 

 

 

 

 

 

 

 

 

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