Not The Close Bulls Wanted To See On September 9
Stocks had an up day but a weak finish, failing at some critical levels of resistance that matter most.

Not The Close The Bulls Wanted To See On September 9

September 9, 2020

STOCKS – TSLA, ROKU, SBUX

Macro – QQQ, SPY

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MICHAEL KRAMER AND THE CLIENTS OF MOTT CAPITAL OWN TSLA 

MICHAEL KRAMER HAS QQQ PUTS

If you are bear, you probably couldn’t have drawn up a better outcome today. The S&P 500 gapped higher and traded up all day, pushing to the 3,425, and filling the gap. The bulls tried two times to break the S&P 500 higher but failed. It resulted in a bone-crushing 80 bps point drop in the final 35 minutes of trading.

More importantly, I think this sets up a drop to 3,340, and at the very least, a retest of yesterday’s lows. It was not the type of close you want to see as a bull.

Also, tomorrow we will get the ECB monetary policy announcement, which may or may not help stocks overall.

The outcome for the Qs was not much better; on two occasions, they tried to break the ETF higher but failed.  It sets up a potential drop back to $270 tomorrow.

We are just not seeing the call volume return to the market like we saw in previous weeks; it has been steadily declining in recent days.

Meanwhile, put volume fell some today but remains elevated compared to prior weeks.

Tesla (TSLA)

Tesla had an intense day rising by 10%, and managed to climb right back to resistance around $370. That’s the significant level if it can’t get above that level tomorrow, then today is for not, with a drop back to $330 on the way.

Starbucks (SBUX)

Starbucks has a descending triangle pattern to it, and a big gap to fill around $78.50.

Roku (ROKU)

Roku had a lovely day, but I don’t think it sticks, probably falls back to $150.

That’s all for today.

Mike

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