July 10, 2020

STOCKS – BYND, BA, BABA

MACRO – SPY, QQQ

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

• Afternoon Repo To Determine Direction- Midday
• Downwards Trends Remain
• Markets Setting Up For 5-6% Dip
• Downwards Trends Remain
• Nvidia Is Priced For Perfection, May Have Topped Out?
• Stocks Trying To Breakout Ahead Of Data

Stocks are pointing to a slightly lower opening on July 10, but it’s the 10-year yield that is what should be on watch. The yield is 57 bps this morning and its lowest level since mid-April. It is just a couple of basis points away from support at 55 bps. A drop below that level sets up a much steeper decline potentially to the lows last seen in March.

Oil 

Meanwhile, the gap in oil has closed around $42 and is now at risk of turning lower, potentially back to $34.

S&P 500 (SPY)

Meanwhile, the S&P 500 futures continue to find support at 3,115, so as long as that level holds, the bulls have a shot of a rally. However, a break below that 3,115 support likely opens up a further decline to 3080. 

Nasdaq (QQQ)

Meanwhile, the Qs are still in the danger zone at the upper end of the trading channel. Again, as it has been the correct view the prior five times, when the Qs reached this end of the channel, there is a sharp drop back to the lower end of the channel. To this point, there is nothing to suggest this time is different. 

Beyond Meat (BYND)

Beyond Meat was initiated with a sell rating at Citi and a price target of $123. The stock has support at $136 and the potential to fall to around $124. 

Alibaba (BABA)

Alibaba has gone vertical on the big rally over in China, and the stock is getting stretched at this point and overbought. There is a good chance it consolidates lower to $230. 

Boeing (BA)

Boeing is approaching support at $165 and is nearing a potential further break down to $127.

Have a great weekend!

-Mike

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