APRIL 7, 2020
Stocks – DIS, SBUX, NVDA, ZM
Marco – SPY
Mike’s Reading The Markets Premium Content $35/Month or $300/Year
- Finishing Phase 2, Entering Phase 3?
- Stocks Are Testing Big Resistance Levels
- Stocks Set To Rally, But Options Still Betting It Doesn’t Last
- Stocks Reach Critical Levels
- Stocks Are Jumping, Lots Of Bearish Options Betting
- Earnings Decline, Still Have Further To Fall- For The Week Of April 6
- The Next Live Webinar Will Be April 16 At 9 PM ET
- Unemployment Rate Understated, As Economy Weakens Materially
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?
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.
Nvidia reversed lower, and now it looks like it can move to that gap around $245.
Starbucks has a similar pattern, and I think it results in a similar outcome with a drop towards $60.
Zoom is getting closer to $105; maybe it gets there tomorrow.
Have a good day
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