MAY 7, 2020
STOCKS – SQ, JPM, SHOP
MACRO – SPY, QQQ
Stocks are trying to rise today with the S&P 500 ETF trading up by 1.2%. We will have to see how this day goes because we have seen this big moves up the past couple of days, only for them to fade away as the day goes on, clearly not the greatest of signs, that rallies get sold of in too day end.
The big news will come again today at 8:30 am with initial jobless claims, along with productivity and costs. Jobless claims are expected to have fallen to around 3.04 million this week. What will happen once the numbers come is unclear? The market has seen a number of big rallies following these claims in the past, so perhaps there is once again another surge.
S&P 500 (SPY)
There is a downtrend that formed in the S&P 500 ETF so we can continue to watch that and see if holds or breakdown. It is unclear at this point if it is a meaningful trend line.
Square is falling after reporting disappointing results. Despite that decline, the shares are basically in the same place they found themselves to start the week. As long as it holds on to support at $60.70, it should be fine.
SHOP is getting plenty of price target increases over the past two days. Before results, I drew out a chart for a few subscribers, suggesting the stock could rise to $825. I thought it was crazy at the time. But I guess it wasn’t as crazy as I thought.
Meanwhile, we will need to continue to watch these banks stocks for any positive trends. JPMorgan fell below an uptrend yesterday, and it will be essential to see how the stock trades today.
Anyway, that’s all for today.
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