Stocks were up to start then down to finish it, completing turnaround Tuesday.

It Ended Up Being A Turnaround Tuesday After All

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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July 21, 2020

Stocks – AAPL, NVDA, NFLX, SNAP, 700 HK

Macro – QQQ, SPY,

Mike Reading The Markets Premium Content – $35/Month or $300/Year


Stocks jumped on July 21, then fell. The volatility levels seem to be at extremes, even though they are not reflected in the VIX index. The S&P 500 had been up by around 70 basis points but finished the day up just 18 bps. Meanwhile, the NASDAQ 100 finished the day lower by 1%.

S&P 500 (SPY)

The S&P 500 gapped higher today, and by days end, that gap was filled. The index tried to break out, rising to as high as 3,275 but closed well short of it. At this point, we can say that the index failed to break out in that 3,265 region.


The big question, I’m sure everyone is wondering is if the NDX is forming a double top. The answer is that it is too soon to tell. The NDX would need to fall below that 10,400 level. There is the possibility of a bump-and-run pattern has formed in the index also. The RSI is trending lower now, and that is important to note.

Again, I continue to see bearish put buying in the Qs that suggesting there is plenty of people betting the markets fall from here. I know it is hard to believe, but it is what it is. (Premium content – Still Buying Puts On The Markets)

Netflix (NFLX)

Netflix broke through support today at $495. I happen to think $475 is next.

Nvidia (NVDA)

Suddenly Nvidia has a minor downtrend forming to match its declining RSI. No bearish options bets today, but we have seen plenty in recent days. (premium content – Bearish Bets In Nvidia Continue)

Apple (AAPL)

Apple is very close to the uptrend now, a break of the uptrend would be terrible news for the entire market. The RSI is rolling over, $372 would be next.


Snap is getting hit hard; the company sees third quarter Daily Active Users in a range of 242 to 244 million, basically 243 million at the mid-point. That is shy of estimates for 244.8 million. There could be the making of a head and shoulders pattern there, with a break of $22.50 confirming the pattern. That would be a significant reversal.

Tencent (700 HK)

I don’t know what you’ll be doing tonight, but I know I will be watching 700 HK, Tencent. Yeah, this thing has traced out Amazon’s performance nearly entirely. The stock was up 8% percent last night, and if you want to know where Amazon is going tomorrow, you probably should be watching 700 HK.

A lot of potential double tops out there. Anyway.

Have a good one


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