U.S. Trading

• S&P 500 Future -6
• 10-Year Yield: 2.66%
• Oil: $56.13 +0.94%
• VIX: 16.01
• Dollar Index: 97.01 +0.11%

International Trading

• Japan Nikkei: +0.10%
• China Shanghai: +0.05%
• Hong Kong Hang Seng: -0.42%
• South Korea Kospi: -0.24%
• Singapore STI: -0.19%
• German DAX: -0.18%
• UK FTSE: -0.53%
• German 10-Yr Bund: 0.095%
• Japan 10-Year JGB: -0.04%

Global Growth Proxies

• Copper: $2.8275 +1.04%
• Silver: $15.78 +0.27%
• Platinum: $812.30 +0.67%

Key Events:

1. Trade talks between the US and China resume on February 19 with reports that Vice-Premier handed greater power to end tensions.
2. Trade tension Possible memorandum of understanding 
3. Apple to launch new products in 2019?
4. Is the ECB ready to do whatever it takes?

S&P 500 (SPY)

Stocks are pointing to a slightly lower opening on February 19, but nothing severe. Resistance for the S&P 500 comes in a zone of 2,795 to 2,800.

Lululemon (LULU)

Nomura downgraded Lululemon to hold from buy and raised its price target to $157. It seems clear at this point the trend in Lulu has shifted, with an RSI that is now trending lower, and a stock that is nearing a potential breakdown should it fall below $145.

McDonald’s (MCD)

McDonald’s was upgraded at Stephens to overweight from equal weight, while the price target was raised to $200 from $180. Unfortunately, I have never understood the love affair with this stock. It is a company that has shrinking revenue, while it grows its EPS from cost reduction and buy-backs.

Anyway, if you have read me long enough, you know that I am bearish on McDonald’s. However, I have been wrong for sometime, as the stock never breaks below the $155 level.

There appears to be a double forming in the stock, and a break below $170 confirms that double top. The RSI continues to point to a stock that is heading lower over time, not higher. Sorry, Stephens.

Walmart (WMT)

Walmart’s US comp sales +4.2% vs. estimates of 3.2% and beats on both the top and bottom lines, while reaffirming its fiscal year 2020  outlook. The metric the market loves –-US e-commerce growth of 43%. The stock is rising pre-market by 4% and is rising above resistance at $103. The stock could be nearing a big break out sending the stock on its way back to all-time highs around $110.

Facebook (FB)

Facebook is trading slightly lower and continues to appear as if it is heading lower towards $157.

Nvidia (NVDA)

Nvidia should be on watch after investors have had three days to digest those horribly sugar-coated results from last week. A drop below $150 sends the stock back to around $139.

Freeport (FCX)

Freeport is nearing a huge break out which could send the stock higher on towards $13.80.

JD

JD is laying off 10% of its executive workforce. The uptrend in the stock is still firm, and it appears the stock is still on its way to $26.

Blackberry (BB)

Blackberry is nearing a big breakout at $8.70, which could send it on to $9.

Enjoy!