The S&P 500 Rallies To a New Record High After Joe Biden Declares Victory

Big earnings releases this week include DHI, APD, DIS and CSCO.

New Highs 4

On Tuesday, D.R. Horton (DHI) is anticipated to release fourth quarter EPS of $1.76 vs $1.35 last year on revenue of $5.8 billion compared to $5.0 billion a year ago. The Co builds and sells single-family detached homes, and on October 19th, the Co announced the acquisition of Braselton Homes, the largest homebuilder in Corpus Christi, Texas, for approximately 23.0 million dollars. Looking at a daily chart, the RSI is below its neutrality area at 50. The MACD is below its signal line and negative. The configuration is negative. Moreover, the stock is trading under both its 20 and 50 day MA (respectively at $73.03 and $73.15). We are looking at the final target of $61.30 with a stop-loss set at $76.80.     

On Wednesday, Air Products & Chemicals (APD) is expected to announce fourth quarter EPS of $2.17 compared to $2.27 a year ago on revenue of $2.3 billion, in line with the year before. The Co is one of the leading industrial gas suppliers globally and its current analyst consensus rating is 15 buys, 12 holds and 0 sells, according to Bloomberg. From a technical point of view, the RSI is above its neutrality area at 50. The MACD is above its signal line and negative. The MACD must break above its zero level to call for further upside. Moreover, the stock is trading above both its 20 and 50 day MA (respectively at $291.7 and $294.55). We are looking at the final target of $331.00 with a stop-loss set at $292.00.

On Thursday, Walt Disney (DIS) is likely to unveil fourth quarter LPS of $0.72 vs an EPS of $1.07 last year on revenue of $14.2 billion compared to 19.1 billion a year ago. The Co is an entertainment and media giant, and on October 29th, Vice President of Employee Relations, Jim Bowden, sent out a notice that 11,350 union employees of Walt Disney Parks and Resorts U.S. will be laid off on December 31st, 2020, due to business impacts from the Covid-19 pandemic. From a chartist's point of view, the RSI is above its neutrality area at 50. The MACD is negative and above its signal line. The MACD must break above its zero level to call for further upside. Moreover, the stock is trading above both its 20 and 50 day MA (respectively at $124.93 and $126.9). We are looking at the final target of $137.60 with a stop-loss set at $120.30. 

Also on Thursday, Cisco Systems (CSCO) is awaited to post first quarter EPS of $0.71 compared to $0.84 a year ago on revenue of $11.9 billion vs $13.2 billion last year. The Co is a leading global supplier of network hardware and software, and on November 3rd, Ambow Education Holding (AMBO), a national provider of educational and career enhancement services in China, entered into a partnership with the Co to launch international career education, training and certification services for information technology (IT) and the Internet. Technically speaking, the RSI is below its neutrality area at 50. The MACD is above its signal line and negative. The configuration is mixed. Moreover, the stock is trading under both its 20 and 50 day MA (respectively at $38.05 and $38.96). We are looking at the final target of $39.90 with a stop-loss set at $36.00. 

Looking at the S&P 500 CFD on a 30 minute chart, the index made a new record high of 3,673.90 on the morning of Monday, November 9th. Over the weekend, Democratic Presidential nominee Joe Biden declared victory in the 2020 Presidential election. Now that the election appears to have come to an end, the market is now expected to enter a new Presidential Cycle. The index will likely continue to advance making new highs along the way. If the index can get above its new all-time high of roughly 3,674.00, its next two Fibonacci targets are at 3,794.00 and 3,856.00. If the index slips, traders should look to 3,529.00 for a bounce. If price cannot hold at 3,529.00, then speculators should look for support at 3,463.00. If price does not rebound off of 3,463.00 it would be a bearish signal, as price would likely be below its 200-period simple moving average.                 



Source: GAIN Capital, TradingView

More from SPX

Disclaimer

This report is intended for general circulation only. It should not be construed as a recommendation, or an offer (or solicitation of an offer) to buy or sell any financial products. The information provided does not take into account your specific investment objectives, financial situation or particular needs. Before you act on any recommendation that may be contained in this report, independent advice ought to be sought from a financial adviser regarding the suitability of the investment product, taking into account your specific investment objectives, financial situation or particular needs.

GAIN Capital Singapore Pte. Ltd., may distribute reports produced by its respective foreign entities or affiliates within the GAIN Capital group of companies or third parties pursuant to an arrangement under Regulation 32C of the Financial Advisers Regulations. Where the report is distributed to a person in Singapore who is not an accredited investor, expert investor or an institutional investor (as defined in the Securities Futures Act), GAIN Capital Singapore Pte. Ltd. accepts legal responsibility to such persons for the contents of the report only to the extent required by law. Singapore recipients should contact GAIN Capital Singapore Pte. Ltd. at 6826 9988 for matters arising from, or in connection with the report.

In the case of all other recipients of this report, to the extent permitted by applicable laws and regulations neither GAIN Capital Singapore Pte. Ltd. nor its associated companies will be responsible or liable for any loss or damage incurred arising out of, or in connection with, any use of the information contained in this report and all such liability is hereby expressly disclaimed. No representation or warranty is made, express or implied, that the content of this report is complete or accurate.

GAIN Capital Singapore Pte. Ltd. is not under any obligation to update this report.

Trading CFDs and FX on margin carries a high level of risk that may not be suitable for some investors. Consider your investment objectives, level of experience, financial resources, risk appetite and other relevant circumstances carefully. The possibility exists that you could lose some or all of your investments, including your initial deposits. If in doubt, please seek independent expert advice. Visit cityindex.com.sg for the complete Risk Disclosure Statement.

Important Notice:

Cryptocurrencies are not legal tender currency and trading of derivatives on Cryptocurrencies are currently not covered under any regulatory regime in Singapore. Consequently, investors should be aware they do not have protection under the Securities and Futures Act (Cap. 289). Please ensure that you are fully aware of the risks.