October 18, 2020
STOCKS – AMD, T, TSLA, INTC, NFLX
Macro – SPY, QQQ, XLU
- Themes For The Week Of October 19
- Sector Rotation Turning Defensive
- Biden’s Lead Is Narrowing Over Trump
- Globally Markets Giving Warnings Signs
- Exxon’s Stock May Be Heading For A Reversal Of Trend
- Micron’s Shares May Jump 9%
- PayPal May Surge With The Market, But Not Without Risk
- Intel’s Stock Is Breaking Out
MICHAEL KRAMER AND THE CLIENTS OF MOTT CAPITAL OWN TSLA
S&P 500 (SPY)
Stocks will try to advance after stalling out this past week. The momentum is still behind the rally for at least a little bit longer. The RSI is still pushing higher, and a steady trendline holding up as support. Additionally, it would appear we are the fifth wave of a 5 wave count higher. So I continue to think we are heading higher from here to around 3,600.
NASDAQ 100 (QQQ)
Meanwhile, we can make a similar statement about the Q’s and its potential to power higher towards $305. The RSI on the hourly should be ignored, as I believe the RSI is never a good indicator of intraday timeframes.
But interestingly there may be a defense tone beneath the surface, and we will need to closely watch the XLU, as it appears to be breaking free of a flag pattern and potential heading higher towards $69. The RSI has broken free of a downtrend, and that suggests higher prices are on the way.
I think Intel will continue to rise this week. The stock appears to have finally turned the corner. The RSI is steadily rising and is still below overbought levels. I think it climbs to around $56. (Premium content from 10/12 -Intel’s Stock Is Breaking Out)
AMD has been holding on to its 50-day moving average over the past few days. But the pattern is still bearish, with an RSI trending lower, which is still not indicating oversold conditions. Again, I think this likely heading lower towards $72.
Meanwhile, Tesla will report results this week, and has moving nicely higher along and uptrend. The RSI is trending higher, and it suggests that the stock continues heads to around $476.
Momentum in Netflix has really shifted, from higher to lower, with an RSI trending to lower prices. I think the company disappoints this week and the stock heads back to $495.
Maybe AT&T has finally hit bottom, with an RSI turn potentially forming. If the stock can hold on to $27.30, it can start to recover towards $28.90.
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