There was plenty of news moving a variety of issues to start the first full week of trading in 2020. The impact that geopolitical events were having on stocks, gold and crude oil futures was discussed at the top of PreMarket Prep.
Will It Be Deja Vu All Over Again?
During Friday's show, the stock index futures were deep in the red as a result of a U.S. airstrike that killed top Iranain General Qasen Soleimani intensifying tensions in the Middle East.
The market, in true 2019 fashion, shrugged off the negative news and recouped much of its earlier losses by days end. Over the weekend, Iran's General Salami pledge of "painful" revenge against the U.S. sent jitters across financial markets in pre-market trading.
At the top of the show, co-host Dennis Dick speculated the market may act in a similar fashion in today's session. In other words, investors would utilize the steep decline as another "buy the dip opportunity."
As it turns out, the S&P 500 bottomed shortly after the 9:30 a.m. ET opening and is nearing unchanged for session at the time of this article was being written.
Must-Hold Technical Support Level For Boeing Company
Perhaps no stock has been under more scrutiny as of late than Boeing Co (NYSE: BA).
Since the 737 Max airplane crash last March, the company has constantly been in the news, most of which has not been positive.
Not much has changed in 2020 as before the open, the company announced it considering raising cash to ease the strain of the current crisis. It was also reported Boeing's M&A unit may be under internal scrutiny.
Since it's impossible to predict the news flow out of the company, the co-hosts of the show are leaning on the major support levels at $320 in the issue. The reason being is that $319.55 (August low) has been the low of the move since the saga has begun. Further significance was added to that level when it bottomed in December at $320.61.
In our opinion, as long as that low holds, the issue is poised to drift towards the upper part of its nine month trading range ($380 area). If the issue succumbs to that level, there may considerably more downside in the issue.
At this time, the low for the session ($327.88) is still some distance from that major support level.
Craig Johnson Joins The Show
Just as the co-hosts were discussing the difficulty of interpreting the jargon of Wall Street analysts, Craig Johnson, Managing Director Technical Market Strategist at Piper Sandler joined the broadcast. He discussed some of the nuances analysts face when coming up with coming up with their ratings. He also outlined his bullish outlook for the energy sector and announced his target of 3600 for the S&P 500 index in 2020.
At 8:35 a.m. EST on Tuesday's show, Ryan Detrick, CMT-Senior Market Strategist at LPL Financial will join the crew and provide us with 2020 forecast for the markets.