From Take'em Up Tuesday To Turn Around Tuesday
Stocks rose sharply to start April 7, but the gains couldn't hold, and by days end, the market finished lower.

From Take’em Up Tuesday To Turn Around Tuesday

This column is my opinion and expresses my views. Those views can change at a moments notice when the market changes. I am not right all the time and I do not expect to be. I disclose all my positions clearly listed on the page, and I do not trade my account on the stocks spoken of in this column unless fully disclosed. If that does not work for you stop reading and close the page. Do not bother me or harass me.

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APRIL 7, 2020

Stocks – DIS, SBUX, NVDA, ZM

Marco – SPY

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Take’em Up Tuesday became Turn Around Tuesday pretty quickly. I think the S&P 500 rose to around 2,760 and finished at 2,660, a nice intraday 3.5% plunge. Again, these rallies as sharp as they maybe can not be trusted. I don’t see any other way to put it. These are short-term rallies, in a longer-term downtrend.

With earnings estimates likely only heading lower, the S&P 500 is getting somewhat expensive at current levels. I don’t see how the current earnings picture will continue to support the S&P 500 at its current level. Premium content – Stocks Set To Rally, But Options Still Betting It Doesn’t Last

S&P 500 (SPY)

The index rose right to downtrend at 2,760, in what appears to now be a giant broadening wedge pattern with my short-term target of roughly 2,500. Premium Content – Finishing Phase 2, Entering Phase 3?

S&P 500 , spy

Disney (DIS)

Disney looks like it may have doubled topped on the intraday chart and that likely means it is heading back to the lows around $78. Disney’s business is getting hit from every angle currently from the virus.

Disney, dis

Nvidia (NVDA)

Nvidia reversed lower, and now it looks like it can move to that gap around $245.

nvidia, nvda

Starbucks (SBUX)

Starbucks has a similar pattern, and I think it results in a similar outcome with a drop towards $60.

starbucks, sbux

Zoom (ZM)

Zoom is getting closer to $105; maybe it gets there tomorrow.

zoom, zm

Have a good day

-Mike

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