This Day On The Street
Continue to site
ADVERTISEMENT
This account is pending registration confirmation. Please click on the link within the confirmation email previously sent you to complete registration.
Need a new registration confirmation email? Click here

U.S. Business Cycle Stuck in Trough

NEW YORK ( TheStreet) -- Headlines and Open Positions

ISM and ADP were the driving forces of Wall Street trade on Wednesday, and allowed the overnight-market alert warnings of over-extended equity markets, and subsequent trade signals, to come to fruition.

The US economic calendar has dominated the news wires in regard to equity indices valuations, with a stream of data hitting the wires recently that confirm the U.S. business cycle is still unable to move out of the trough phase and into expansion.

There are a multitude of individual stock trades setting up as a result of the Wednesday session moves, which will be sent to clients if confirmation is seen this week. The fundamentals of the following companies may not be questionable, but they will get caught in the downdraft if global indices trade confirms that June will be a month that starts with profit taking on equity futures contracts.

Intel (INTC - Get Report) will signal short with a close below 22.00, as will Continental Resources (COL - Get Report) with a close below 59.70.

Apple (AAPL - Get Report) will signal short with a close below 347.00 that targets 344, and possibly 338 if the global equity indices downdraft hits. Google will signal short with a close below 527 that targets 522, and 515.

The potential for new equity indices trade signals to form today has already passed, with overnight global momentum and reactions to this morning's economic docket now priced in. Traders who missed the overnight flow of information and trade ideas from TheLFB trade desk should not jump in at this stage; the momentum has run its near-term course and patience needs to be practiced.

Equity and economic fundamentals remain very questionable over the mid-term, especially as the first-quarter earnings season wraps up and questions are asked whether the Federal Reserve will instigate another round of quantitative easing programs.

The trade signal on the S&P 500(1327) followed through with a short signal from 1340, that targeted 1338, 1335, and 1329 has already filled. The next target area is 1313 if momentum builds. However, traders will need to exercise caution in joining the fray at this stage.

1 of 3

Check Out Our Best Services for Investors

Action Alerts PLUS

Portfolio Manager Jim Cramer and Director of Research Jack Mohr reveal their investment tactics while giving advanced notice before every trade.

Product Features:
  • $2.5+ million portfolio
  • Large-cap and dividend focus
  • Intraday trade alerts from Cramer
Quant Ratings

Access the tool that DOMINATES the Russell 2000 and the S&P 500.

Product Features:
  • Buy, hold, or sell recommendations for over 4,300 stocks
  • Unlimited research reports on your favorite stocks
  • A custom stock screener
Stocks Under $10

David Peltier uncovers low dollar stocks with serious upside potential that are flying under Wall Street's radar.

Product Features:
  • Model portfolio
  • Stocks trading below $10
  • Intraday trade alerts
14-Days Free
Only $9.95
14-Days Free
Submit an article to us!
SYM TRADE IT LAST %CHG
AAPL $128.95 0.00%
COL $97.67 0.00%
EEM $43.14 0.00%
INTC $33.42 0.00%
SMH $57.04 0.00%

Markets

DOW 18,024.06 +183.54 1.03%
S&P 500 2,108.29 +22.78 1.09%
NASDAQ 5,005.3910 +63.9670 1.29%

Partners Compare Online Brokers

Free Reports

Top Rated Stocks Top Rated Funds Top Rated ETFs