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S&P 500 Overview: Direction Unclear as Negativity Builds
- Extreme negativity in tech dominating sentiment.
- Upside risk if 2700 holds. Otherwise 2018 low around 2530 potentially in play.
- Watching 20DMA, 30DMA for direction as index chops around 2700.
- Market still in longer-term uptrend.
- Transports not confirming bearishness.
- Is negativity too extreme?
Company & Sector News More Bearish Than Economy
- Energy / oil is down because of U.S. production, OPEC missteps — not just weak demand/recession.
- Tech is down for a series of its own reasons.
- Tech factoid: Data-center REITs (DLR, EQIX) lagging despite REIT strength.
- Jobless claims still near long-term lows. Manufacturing still positive.
- Fed may be turning dovish.
- Bob Doll of Nuveen, Michael Hartnett of BAML see more downside in S&P 500.
- Steve Cohen: Bear market coming as economy slows
- Chintawongvanich of Wells: Need to see more panic for this to be bottom.
- Conference Board: CEOs don’t see economic slowdown yet.
- Hatzius of GS: US to slow amid less stimulus but avoid recession.
- Warren Buffett amassing banks.
Don’s Watch List:
- Manufactured housing in focus: Cavco Industries (CVCO), Patrick Industries (PATK), Sun Communities (SUI)
- Campbell Soup (CPB) reports tomorrow morning, November 20.
- BJ’s Wholesale (BJ) reports tomorrow afternoon, November 20.
Russell’s Watch List:
- Tesla Motors (TSLA): Lone gainer in the tech world.
- Apple (AAPL) holding $190 zone. Wal-Mart Stores (WMT) at 50-day MA.
- Johnson & Johnson (JNJ), Pfizer (PFE), Merck (MRK), Eli Lilly (LLY) impervious to selloff.
- Survival of the dullest: Coca Cola (KO), Procter & Gamble (PG), Verizon (VZ), Starbucks (SBUX), PepsiCo (PEP)
- Gold miners (GDX) may turn higher as Fed gets dovish.
- Homebuilders (ITB) holding long-term support. Rose on bad news today.
- Wireless tower REITs outperforming since October crash: AMT, CCI, SBAC
- CubeSmart (CUBE) is a long-term mover no one’s ever heard of.
Items to Watch Going Forward:
- 11/28: GDP revision, Jerome Powell speech.
- 11/27: Potential Brexit ruling.
- 11/30-12/1: G20 meeting.