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U.S. markets were choppy throughout Tuesday’s session following a number of crosscurrents, including trade headlines that U.S. and Chinese trade negotiators are laying the groundwork for a delay of tariffs. Additionally, a USMCA deal was announced with a completed deal expected to be signed in Mexico.

In other political news, House Democrats announced that they will vote this week on whether to impeach President Trump on two articles - abuse of power and obstruction of Congress. The bevy of headlines led to a mixed finish for the major indexes with volatility settling a neutral reading.

The Dow dipped 0.1% after trading to an intraday low of 27,804. Current and key support at 27,800 was challenged but held with a close below this level being a bearish development for a further backtest towards 27,600-27,400.

The Nasdaq gave back 0.1% following the late day fade to 8,600. Current and upper support at 8,600-8,550 held with a close below the latter signaling additional weakness towards 8,500-8,450.

The S&P 500 also slipped 0.1% after testing an intraday low of 3,126. Near-term and upper support at 3,125-3,100 held with a close below the latter being a opening up risk towards 3,075-3,050 and the 50-day moving average.

The Russell 2000 bucked the trend after edging up 0.1% while testing a session high of 1,633. Near-term and lower resistance at 1,635-1,650 was challenged but held.

Energy and Healthcare showed strength with gains 0.2% while Technology added 0.1%. Real Estate and Materials led sector weakness with losses of 0.7% and 0.6%, respectively.

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ANALYST UPGRADES/DOWNGRADES

Adecoagro (AGRO) upgraded to Overweight from Neutral at JPMorgan
Monro (MNRO) upgraded to Buy from Neutral at Guggenheim
Owens-Illinois (OI) upgraded to Buy from Neutral at Goldman Sachs

CSX (CSX) downgraded to Neutral from Buy at Citi
McCormick (MKC) downgraded to Sell from Neutral at Goldman Sachs
Ventas (VTR) downgraded to Underperform from Market Perform at Wells Fargo

WEDNESDAY'S EARNINGS ANNOUNCEMENTS  
Before the open: American Eagle Outfitters (AEO), Children's Place (PLCE), Photronics (PLAB), United Natural Foods (UNFI), Vera Bradley (VRA)

After the close: Blue Bird (BLBD), DLH Holdings (DLHC), Lululemon Athletica (LULU), Mesa Air Group (MESA), Nordson (NDSN), Oxford Industries (OXM), Quanex Building Products (NX), Tailored Brands (TLRD)

WEDNESDAY'S ECONOMIC NEWS
MBA Mortgage Applications - 7:00am
Consumer Price Index - 8:30am
Atlanta Fed Business Inflation Expectations - 10:00am
Quarterly Services Survey - 10:00am
FOMC Minutes - 2:00pm
Treasury Budget - 2:00pm

METALS/ OIL
Gold closed at $1468.80 an ounce,  up $3.90
Silver settled at $16.70 an ounce, up $0.06
Copper finished at $2.76 a pound, up $0.01
Crude Oil was at $59.33 a barrel,
up $0.33
Bitcoin Investment Trust (GBTC) ended at $8.65, down $0.17


I hope this helps you prepare for the trading day. Make it a great one!


   Todd Mitchell


Not sure the best way to get started?

Follow these 3 simple steps ...

Step #1: Get These FREE Reports & Videos

Options INCOME  Profits   8 Video  Series    Habits that Kill Traders...



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Premium Advisories | Featured  Educational  Programs 



Step #3: Connect with The Community
Trading Concepts Official Facebook Page

The post Market Settles Slightly Lower on Trade Headlines appeared first on Trading Concepts, Inc..

The US stock market cared about only one thing this year: trade. So why were stocks so calm Tuesday following headlines about tariff delays and the signing of Nafta 2.0?

On Tuesday, The Wall Street Journal reported that American and Chinese negotiators are working to delay the December 15 duties that the United States is set to impose on Chinese imports. This next round of tariffs will hit consumer goods.

Meanwhile, Democratic lawmakers announced their support of the USMCA trade deal with Mexico and Canada that will replace the North American Free Trade Agreement.

Both developments were undoubtedly market positive, but stocks traded lackluster at best. The Dow (INDU) and the S&P 500 (SPX) were both off by 0.1%, while the Nasdaq Composite (COMP) down by an even smaller margin.

So what's going on?

For one, investors are fed up.

"The market is becoming numb to these trade headlines," said Zhiwei Ren, managing director and portfolio manager at Penn Mutual Asset Management.

The ongoing trade war has left market participants fatigued in the face of new promises of fruitful negotiations or new import levies.

"Also, market participants' positioning is light as few people are taking a big position in front of the December 15 decision," Ren added.

When it comes to trade deals and tariff threats, "unless you see pen hit paper, don't get caught up in it," JJ Kinahan, chief strategist at TD Ameritrade told CNN Business.

The uncertainty from the ongoing spat between Washington and Beijing has taken its toll on business investment and confidence, as well as the manufacturing and retail sectors.

Investors have grown more cynical with every trade headline that wasn't followed by action, such as comments on the progress of talks. But stocks still moved in lockstep with rising and falling hopes for a trade deal.

But Tuesday's headlines may have just lacked the surprise factor.

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Tariffs have been postponed before, and the December 15 levies will hurt the US consumer like none have before. That is key, because consumer spending accounts for some two-thirds of US GDP. Hurting the consumer means hurting the economy.

"The Trump economics team is counting on the consumer to carry the economy forward as business investment still is being held back by an uncertain outlook for trade talks," wrote Chris Rupkey, chief financial economist at MUFG, in a recent not to clients.

All this had already set the stage for a probable tariff delay.

The USMCA deal, on the other hand, was agreed back in October 2018, even though it is yet to be ratified.

Democrats are proponents of a North American trade association, and the original Nafta deal was signed by President Bill Clinton. This made it unlikely for Congress to block the passing of USMCA.

What we're seeing in the market today "is a more prudent market reaction with people taking a breath," said Kinahan.

After all, amid the swirl of trade news, the Federal Reserve meeting also kicked off.

While interest rates are expected to be left unchanged, investors are keen to hear the central bank's assessment of the economy in the last months of the year, which is stealing the trade headlines' limelight.

Regardless of Tuesday's market reaction, trade remains the single biggest driver for the market going into the new year.

That is in part because of how binary the situation is: a trade deal would remove uncertainty for investors and give businesses the confidence to invest in their future. Global trade could rebound and the manufacturing sector could recover. Investors sitting on the sidelines would no longer have a reason not to get back into the market.

A full-blown trade war, on the other hand, would lead to more pain through tariffs, possible currency wars and likely a prolonged slowdown of the global economy.

Source: https://www.cnn.com/2019/12/10/investing/dow-stock-market-trade/index.html

Here’s to your trading success, I hope it helps.

The post Trade has put markets in a chokehold appeared first on Trading Concepts, Inc..

The Federal Reserve is expected to conclude its December meeting on Wednesday afternoon by signaling it’s in no hurry to do anything to change its neutral stand on interest rates.

But Fed Chairman Jerome Powell is likely to promise the central bank will do whatever is necessary to keep liquidity high and overnight lending rates steady at the end of the year, a time when the short-term lending market is typically under the most pressure.

The Fed releases its post-meeting statement at 2 p.m. ET Wednesday, and it is not expected to make significant changes in its statement from its previous meeting. It will, however, release its interest rate forecast and latest economic projections at the same time, and it could show some improvement particularly after November’s increase in payrolls of 266,000.

Powell then speaks at 2:30 p.m., and he could be asked about the short-term lending market.

Cash crunch

“I think what I’m going to be looking for most carefully are probably changes in the forecast. Some of the numbers have been quite good,” said Drew Matus, chief market strategist at MetLife Investment Management. Matus said he expects the Fed to stay on hold for another year, so he sees no change in its messaging. “They’ll probably drop the rate for unemployment. We’re seeing them coming down and we’re not seeing a pickup in inflation.”

One of the hotter topics around the Fed has been the repo market. The Fed is conducting overnight and longer-term operations to keep the market operating smoothly. It is also conducting a quantitative easing-like operation to increase its holdings in Treasury bills, boosting the size of its balance sheet and adding to liquidity.

“They’ve been pretty flexible so far and [I] don’t see why that would change. I think a simple ‘whatever it takes’ tomorrow will be all he’ll really need to say about the issue,” J.P. Morgan chief U.S. economist Michael Feroli said in an email.

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Economic forecasts

Feroli expects the Fed to repeat that uncertainties remain. Powell has been clear that trade issues are a potential negative and the world awaits Sunday’s deadline President Donald Trump set on potential new tariffs for China if there is no trade deal. “The Fed will monitor the data and assess the “appropriate path” of the funds rate; in other words, it will continue to convey no policy bias. We don’t expect any dissents,” Feroli said in a note.

The Fed could adjust its forecast for the fed funds rate when it releases its forecast, presented in a chart called the dot plot. The dot plot contains all the interest rate forecasts of Fed officials. The Fed cut rates for the third and final time in October, dropping the fed funds target range to 1.50% to 1.75%.

“We expect the median dot for 2020 will be lowered to the mid-point of the current target range, 1.625%. While there will likely still be some dots looking for a hike or two next year, we suspect the large majority of the Committee will be comfortable projecting no change for policy rates in the year ahead,” Feroli said.

Market pros have been waiting to hear what the Fed will say on the short-term lending market. Repo is a corner of the financial markets that is obscure to most people, but it has been in the spotlight since an unusual spike in rates in September.

It is extremely important since it is where institutions go when they need short-term cash. They typically exchange some collateral, like Treasurys or mortgage securities, for a short-term loan. It is considered the plumbing of Wall Street, and the worry is if it doesn’t work or if it shows stress, then it could lead to real trouble in the financial system.

Matus doesn’t expect the Fed to make any proclamations about the repo market Wednesday. “They’ll certainly be asked about it in the press conference,” Matus said. “He’s going to have some sort of answer. Whether this is sufficient to make people happy is a whole other question. I don’t think they want to put in place a solution that they’re not even sure they need on a permanent basis.”

He said open market operations appear to have the problem solved for now. “I think they’re not even really sure what’s happening. They made some changes to try to be more positive, to try to take some of the pressure off the market,” Matus said. “It’s not ‘if it’s not broken, don’t fix it.’ It’s more like ‘if you don’t know why it’s broken, don’t fix it.’”

The repo market faces pressures at quarter-end, since banks are under pressure to make their balance sheets appear safe, and even more so at year-end for regulatory purposes. That means they don’t want to show a tremendous amount of short-term liabilities on their balance sheets at quarter-end. Interest rates in the repo market have been slowly rising, as the year-end gets closer.

“If you want to lock up funding over year-end for December 31 to January 2, you would pay 4.20% for Treasury general collateral,” said Michael Schumacher, Wells Fargo director of rates strategy. “That price two weeks ago was 3%. It’s actually been moving up gradually. It seems to be ticking up fairly steadily.” He said last year that the rate rose as high as 5%, so that would be possible.

Schumacher said it would not be surprising to see the Fed add more funding to the market temporarily.

The rate spikes in September have been blamed on everything from corporations seeking short-term funds to pay taxes to changes in banking rules that hindered lending.

Major banks that are the primary dealers are the only institutions that can use the Fed facility, and they then would be lenders to other institutions that need capital. But they could also serve as a bottleneck since they are not required to report how the short-term funds are being used

Source: https://www.cnbc.com/2019/12/10/fed-is-expected-to-hold-rates-steady-vow-to-keep-short-term-markets-stable.html

Have a fantastic day and I hope today’s article helps.

The post The Fed is expected to hold rates steady and vow to keep short-term lending markets stable appeared first on Trading Concepts, Inc..

OB 861: Crazy Size Collars

 

  • HOST:  MARK LONGO, THE OPTIONS INSIDER
  • CO-HOST: MARK SEBASTIAN, OPTION PIT
  • CO-HOST: MIKE TOSAW, ST. CHARLES WEALTH MANAGEMENT
  • FIDELITY HOT SEAT: KONSTANTIN VRANDOPULO, TRADING STRATEGY DESK, FIDELITY BROKERAGE SERVICES LLC

 

TRADING BLOCK SEGMENT

  • MILD SELLOFF TO KICK OFF THE WEEK 
  • VIX: 14.75 - UNCHD
  • VVIX: 98 - DOWN 1 FROM LAST SHOW
  • VXX: 17 - DOWN .6 FROM LAST SHOW 
  • TECHNICAL ANALYSIS AND OPTIONS ACTIVITY AT FIDELITY IN UGAZ, ROKU, AAPL, CGC.

ODD BLOCK

  • MASSIVE PCG RISK REVERSAL/COLLAR
  • CRUSHING SOME CALLS IN GLW
  • CPRT CALL LOVE

STRATEGY BLOCK

  • WHEN TO DO STUFF AND WHEN NOT TO DO STUFF

MAIL BLOCK

AROUND THE BLOCK

  • WHAT’S ON YOUR RADAR FOR THE REST OF THE WEEK? LULU, COST and MU earnings, commentary from White House sources regarding the upcoming tariff increase deadline on Dec 15th

U.S. markets were sluggish to start the week after trading in tight ranges and on both sides of the ledger while settling slightly lower for the session. The cautious action comes ahead of a week full of potentially market-moving events, including the FOMC meeting midweek, an overseas ECB meeting and the UK election.

Also looming is the December 15th deadline for additional U.S. tariffs on Chinese goods along with a possible USMCA deal. Meanwhile, volatility was slightly elevated as the spike towards near-term resistance levels is signaling continued nervousness in the market over the near-term.

The Dow declined 0.4% after trading to a late day low of 27,906. Prior and upper support at 28,000-27,800 was breached and failed to hold with a close below the latter signaling additional risk towards 27,600-27,400.

The Nasdaq was also off 0.4% following the pullback to 8,619 while trading in a 59-point range. New and upper support at 8,650-8,600 was breached and failed to hold with a close below the former getting 8,500-8,450 back in focus.

The S&P 500 fell 0.3% after closing on the session low of 3,135 and trading in a 13-point range. Near-term and upper support at 3,125-3,100 easily held with a move below the latter being a renewed bearish signal with downside potential towards 3,075-3,050 and the 50-day moving average.

The Russell 2000 also dropped 0.3% and closed on its session low of 1,629. Current and upper support at 1,630-1,615 was breached and failed to hold with a close below the latter signaling a further backtest towards the 1,600 level.

Consumer Discretionary, Consumer Staples and Real Estate were the only sectors that showed strength after rising 0.1%. Healthcare was the leading sector laggard after falling 0.7% while Technology was lower by 0.5%.

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ANALYST UPGRADES/DOWNGRADES

Dow (DOW) upgraded to Buy from Hold at SunTrust
Skyworks (SWKS) double upgraded to Buy from Underperform at BofA/Merrill
Wingstop (WING) upgraded to Conviction Buy from Buy at Goldman Sachs

3M (MMM) downgraded to Neutral from Buy at Citi
Harvard Bioscience (HBIO) downgraded to Speculative Buy from Buy at Benchmark
PNC Financial (PNC) downgraded to Outperform from Top Pick at RBC Capital

TUESDAY'S EARNINGS ANNOUNCEMENTS  
Before the open: AutoZone (AZO), Conn’s (CONN), Designer Brands (DBI), Francesca's Holdings (FRAN), HD Supply Holdings (HDS), Liquidity Services (LQDT)

After the close: Dave & Buster's Entertainment (PLAY), Enzo Biochem (ENZ), GameStop (GME), Ollie's Bargain Outlet (OLLI)

TUESDAY'S ECONOMIC NEWS
NFIB Small Business Optimism Index - 6:00am
Productivity and Costs - 8:30am
Redbook - 8:55am

METALS/ OIL
Gold closed at $1464.90 an ounce, down $0.20
Silver settled at $16.64 an ounce, up $0.04
Copper finished at $2.75 a pound, up $0.03
Crude Oil was at $59.00 a barrel,
down $0.07
Bitcoin Investment Trust (GBTC) ended at $8.82, down $0.18


I hope this helps you prepare for the trading day. Make it a great one!


   Todd Mitchell


Not sure the best way to get started?

Follow these 3 simple steps ...

Step #1: Get These FREE Reports & Videos

Options INCOME  Profits   8 Video  Series    Habits that Kill Traders...



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Premium Advisories | Featured  Educational  Programs 



Step #3: Connect with The Community
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The post Market Cautious Ahead of FOMC Meeting appeared first on Trading Concepts, Inc..

Stocks fell for the first time in four sessions on Monday as investors took a pause after a sharp rally in the previous session.

The Dow Jones Industrial Average closed 105 points lower, or 0.4%. The S&P 500 pulled back 0.3% and the Nasdaq Composite slid 0.4%. Apple fell 1.4% to lead the Dow lower. The losses ended a three-day winning streak on Wall Street. 

The major averages rose to near-record highs late last week, boosted a U.S. jobs report that easily topped analyst expectations. The world’s largest economy added 266,000 jobs in November, according to data released by the Labor Department.

The Dow rallied more than 300 points on Friday while the S&P 500 came back to post a slight weekly gain. Friday’s strong session came after the market got off to a slow start last week.

“We were impressed by the counterattack by the bulls,” JC O’Hara, chief market technician at MKM Partners, said in a note. “Last week, while selling pressure did pick up, it was not intense enough for us to reverse our positive outlook on equities. Our shorter-term indicators did not fully reset, but that shows just how aggressive the bulls are.”

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During Monday’s session, investor focus turned back to the prospect of a limited trade agreement between the U.S. and China, with less than a week to go before Washington is set to impose even more tariffs on Chinese goods.

China Assistant Commerce Minister Ren Hongbin said Monday the country hopes to make a deal with the U.S. “as soon as possible.” Ren’s comment came after data showed Chinese exports fell for a fourth straight month in November, potentially increasing pressure on China to make a deal.

Trade-sensitive names including Apple came under pressure on Monday as a Dec. 15 deadline to impose tariffs on another $156 billion on Chinese goods remained in place.

Larry Kudlow, director of the White House National Economic Council, told CNBC on Friday that both sides were “close” to a deal, but suggested Trump was prepared to “walk away” if certain conditions were not met.

The U.S. and China have imposed tariffs on billions of dollars’ worth of one another’s goods since the start of 2018, battering financial markets and souring business and consumer sentiment.

“Under the surface, even though the market is holding on to the majority of the gains after a slow start in December, there is still a little bit of nervousness,” said Dan Deming, managing director at KKM Financial. He noted traders have been loading up on Cboe Volatility Index options ahead of the Dec. 15 deadline. “There’s a cautious optimism in the market right now, but there are just so many items for the market to contend with.”

Meanwhile, House Democrats and the Trump administration are close to reaching a tentative deal on replacing the North American Free Trade Agreement after months of deliberations, sources told CNBC. The Democratic-held House could vote on the United States-Mexico-Canada Agreement by Dec. 18, according to the sources.

In corporate news, Sanofi will acquire biotech company Synthorx for $2.5 billion, or $68 per share. The acquisition price represents a 172% premium from Synthorx’s close of $25.03 on Friday. The deal is expected to close in the first quarter of next year.

Virgin Galactic shares jumped more than 12% after an analyst at Morgan Stanley initiated them with an overweight rating, citing the company’s potential to disrupt the airline industry.

Source: https://www.cnbc.com/2019/12/09/stock-market-us-china-trade-developments-in-focus-on-wall-street.html

Have a great day and hope this helps.

The post Dow falls 100 points, snaps 3-day winning streak as Apple shares slide appeared first on Trading Concepts, Inc..

Here are the most important things to know about Tuesday before you hit the door.

1. Fed meeting begins

Federal Reserve’s Federal Open Market Committee starts its two-day policy meeting on Tuesday. Markets widely expect the central bank to hold interest rates steady at the conclusion of the meeting Wednesday after cutting rates for three straight times this year.

“The dot plot and Chair Powell’s press conference should suggest that policy will remain on hold for the foreseeable future (although the Fed will ease if conditions warrant),” Scott Brown, chief economist at Raymond James, said in a note on Monday.

As revealed in the minutes from its October policy meeting, “most” FOMC members saw the cuts this year as enough “to support the outlook of moderate growth, a strong labor market, and inflation” near its 2% target.

2. A North American trade deal?

While the U.S. and China face a Dec. 15 deadline in the form new tariffs as they seek to reach a phase one agreement, the Trump administration marched closer to a trade deal with Mexico and Canada.

House Democrats and the Trump administration are near a deal to replace the United States-Mexico-Canada Agreement after more than a year of deliberations, sources told CNBC.

If the White House sends ratifying legislation to Congress by Dec. 15 to kick off the approval process, the Democratic-held House could vote on ratifying the USMCA by Dec. 18, sources told CNBC. The USMCA vote could come in the immediate aftermath of a vote on articles of impeachment against President Donald Trump, sources said.

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3. Small business optimism, productivity

We’ll get a read of small-business owners’ confidence in the U.S. economy. The National Federation of Independent Business will release its latest Small Business Optimism Index for November on Tuesday.

Economists polled by Dow Jones expect the index to climb 0.4 point to 102.8. Small-business activity in the U.S. accounts for nearly half of private-sector jobs.

Investors will digest other economic data on Tuesday including non-farm productivity and unit labor costs.

Major events (all times ET):

10:00 a.m. SEC chairman Jay Clayton testifies to U.S. Senate committee

11:00 a.m. NFIB Business Optimism Index Nov.

1:30 p.m. Labor Costs Revised Q3

1:30 p.m. Productivity Revised Q3

Earnings (all times ET):

AutoZone (before the bell)

HD Supply Holdings (before the bell)

Designer Bands (before the bell)

GameStop (after the bell)

Dave & Buster’s (after the bell)

Source: https://www.cnbc.com/2019/12/09/market-outlook-for-tuesday-fed-meeting-a-usmca-trade-deal-econ-data.html

I hope this article is helpful in your trading strategy.

The post Fed meeting begins, a North American trade deal, economic data: 3 things to watch for Tuesday appeared first on Trading Concepts, Inc..

U.S. markets rallied for a 3rd-straight session following a blowout jobs report as trade headlines took a back seat to better-than-expected economic news. The gains pushed the major indexes back towards previous resistance levels and within striking distance of another round of fresh all-time highs.

The Dow jumped 1.2% after trading to a late day peak of 28,035. Prior and lower resistance at 28,000-28,200 was cleared and held with a move above the latter and the all-time high of 28,174 getting 28,400-28,600 in focus.

The Russell 2000 also rallied 1.2% to a 52-week intraday high of 1,637. Near-term and lower resistance at 1,635-1,650 was breached but held with a close above the former getting 1,660-1,675 in play.

The Nasdaq was higher by 1% following the 2nd-half run to morning high of 8,665. Previous and lower resistance at 8,650-8,700 was recovered with a close above the latter and the all-time high at 8,705 leading to a possible push towards 8,750-8,800 over the short-term.

The S&P 500 soared 0.9% after trading to a late day high of 3,150. Lower resistance at 3,125-3,150 was cleared on the open and held with a close above the former and the all-time record high at 3,154 signaling additional momentum towards 3,175-3,200.

For the week, the Russell 2000 gained 0.6% and the S&P 500 added 0.2%. The Nasdaq and the Dow dipped 0.1%.

Energy and Financials led sector strength with gains of 1.9% and 1.3%, respectively. Utilities were the only sector laggard after giving back 0.3%.

For the week, the best performing sectors were Energy (1.4%), Consumer Staples (1.1%) and Healthcare (0.9%). Industrials (-1.1%), Consumer Discretionary (-0.6%) and Technology (-0.5%) were the worst sector performers.

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ANALYST UPGRADES/DOWNGRADES

Epizyme (EPZM) upgraded to Overweight from Equal Weight at Morgan Stanley
Ingersoll-Rand (IR) upgraded to Outperform from Market Perform at Wells Fargo
Philips (PHG) upgraded to Overweight from Equal Weight at Morgan Stanley

Ciena (CIEN) downgraded to Sell from Neutral at UBS
Michaels (MIK) downgraded to Equal Weight from Overweight at Stephens
Teladoc (TDOC) downgraded to Hold from Buy at Jefferies

MONDAY'S EARNINGS ANNOUNCEMENTS  
Before the open: China Online Education Group (COE), Jianpu Technology (JT), Thor Industries (THO)

After the close: Avid Bioservices (CDMO), Chewy (CHWY), Construction Partners (ROAD), Genasys (GNSS), MongoDB (MDB), Phreesia (PHR), Stitch Fix (SFIX), Toll Brothers (TOL), Vail Resorts (MTN)

MONDAY'S ECONOMIC NEWS
TD Ameritrade IMX - 12:30pm

METALS / OIL
Gold closed at $1,465.10 an ounce, down $18.00
Silver settled at $16.60 an ounce,  down $0.46
Copper finished at $2.72 a pound, up $0.06
Crude Oil  was at $59.07 a barrel, up $0.69
Bitcoin Investment Trust (GBTC) ended at $9.00, up $0.19


I hope this helps you prepare for the trading day. Make it a great one!


   Todd Mitchell


Not sure the best way to get started?

Follow these 3 simple steps ...

Step #1: Get These FREE Reports & Videos

Options INCOME  Profits   8 Video  Series    Habits that Kill Traders...



Step #2: Enroll in an Advisory or Educational Program
Premium Advisories | Featured  Educational  Programs 



Step #3: Connect with The Community
Trading Concepts Official Facebook Page

The post Bulls Split Weekly Win Following Blowout Jobs Numbers appeared first on Trading Concepts, Inc..

PG&E Corp. has reached a settlement with victims of the wildfires that pushed California’s largest utility into bankruptcy, agreeing to pay them $13.5 billion in damages.

The pact removes a significant obstacle to PG&E’s emergence from chapter 11 protection and includes reforms meant to address criticism that the company enriched shareholders while leaving customers exposed to danger from aged, unsafe equipment, the Wall Street Journal reported.

PG&E PCG, -1.33%  bowed to demands for more money for fire victims and gave in to pressure from California Gov. Gavin Newsom to improve its corporate governance and implement stricter safety protocols. The governor’s office couldn’t immediately reached for comment about Friday’s development.

“There have been many calls for PG&E to change in recent years. PG&E’s leadership team has heard those calls for change, and we realize we need to do even more to be a different company now and in the future,” Chief Executive Bill Johnson said.

Robert Julian, lawyer for the fire victims, said that the settlement is an admission by PG&E that victims’ losses exceeded $13.5 billion and that the company is responsible for those losses.

The settlement with fire victims averts fights in two courts over how much the company must pay people who lost loved ones, homes and property to blazes that swept its service territory in recent years. State fire investigators determined that California’s deadliest and most destructive blaze, the Camp Fire, was ignited when a wire snapped free of a PG&E transmission line. The 2018 blaze killed 85 and destroyed the town of Paradise.

The deal is a win for the company, which has been wooing fire victims away from a rival chapter 11 plan proposed by bondholders led by Elliott Management Corp. PG&E is matching the bondholder offer and improving on its original offer of $8.4 billion in order to enlist support for its plan from fire victims.

Under the settlement, PG&E will pay half of the $13.5 billion in cash and half in stock, an important concession to fire victims who were concerned the utility’s stock could be a risky bet. The agreement grew out of talks between the company and lawyers for fire victims, as court fights loomed.

Lawyers for thousands of people affected by the fires have been preparing to show that PG&E is legally liable for blazes linked to its equipment. The utility was scheduled to face a jury in state court in a case that sought to hold it accountable for the Tubbs fire in 2017 that killed 22 and burned thousands of acres, mainly in Sonoma and Napa counties. Meanwhile, a federal judge in San Francisco was getting ready to hear from experts and witnesses about PG&E’s liabilities for a series of fires.

The settlement would halt those trials and ease PG&E toward a bankruptcy exit in time to qualify for a statewide fund designed to cushion California’s utilities against the rising risk of fires.

Source: https://www.marketwatch.com/story/pge-agrees-to-pay-135-billion-in-settlement-to-victims-of-california-wildfires-2019-12-07?siteid=rss&rss=1

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Gold slid 1% on Friday as strong U.S. jobs data renewed bets the Federal Reserve would hold pat on interest rates and boosted demand for riskier assets, while supply-squeezed palladium soared to a new record high. U.S. job growth increased by the most in 10 months in November, confirming that the economy remained on a moderate expansion path despite a prolonged manufacturing slump.

Spot gold slipped 1% to $1,461.01 per ounce. U.S. gold futures settled down 1.1% at $1,465.1 per ounce.

“The better-than-expected jobs report has dented demand for safe-haven products such as gold,” said David Meger, director of metals trading at High Ridge Futures.

The jobs data pushed up the dollar, while U.S. stock index futures jumped as the positive economic readings added to an upbeat mood after U.S. President Donald Trump said trade talks with China were “moving right along”.

In a positive gesture, China said it will waive import tariffs for some soybeans and pork shipments from the United States. Looking ahead, the market focus will be on the Fed’s meeting on Tuesday and Wednesday next week. The U.S. central bank is expected to keep interest rates on hold at 1.50% to 1.75% .

“The (jobs) report falls squarely to the camp of the U.S. monetary policy hawks who do not want to see interest rates rise anytime soon, and that is bearish for the metals market,” said Kitco Metals senior analyst Jim Wyckoff.

Lower interest rates reduce the opportunity cost of holding non-yielding bullion and weigh on the dollar.

“On the technical side, a close below the $1,460-65 area could open gold up to the $1,445-47 November lows, and beyond that towards $1,400-$1,420 congestion area over the summer,” said Tai Wong, head of base and precious metals derivatives trading at BMO.

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Elsewhere, autocatalyst metal palladium continued scaling fresh peaks, hitting $1,880.37 for the first time.

“The demand for palladium is typically steady and practically price-inelastic, so it could be on its way to the $1,900 mark. The strong jobs numbers are helping the metal since jobs growth indicates a healthy economy and translates into more people buying cars,” BMO’s Wong said.

Other metals latched onto gold’s slide as well, with silver falling 2% to $16.60 per ounce, having earlier touched a low since Aug. 7 at $16.51. Platinum fell 0.4% to $893.25.

Source: https://www.cnbc.com/2019/12/06/gold-markets-us-china-trade-dollar-in-focus.html

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Todd Mitchell Trading Concepts

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