Stock Are Failing At Another Tough Level of Resistance

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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June 30, 2020

STOCKS – MU, UBER, ZOOM

MACRO – SPY, QQQ, HYG

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S&P 500 (SPY)

Stocks are trading flattish following yesterday’s big move higher. Interestingly the S&P 500 futures traded up to around 3050 last night for some time and were unable to advance any further. It seems to be the pattern we have been following for a few weeks now. First, with 3150 was acting as resistance, then 3080, and now 3050. If that is the case, then we need to mindful or thoughtful of the fact that futures could quickly be heading to 3000. 

Here is the chart of the S&P 500 from the SPY ETF point of view.

Qs (QQQ)

And for now, the chart of the Qs. Again, $240 is the only level that matters for now. 

HYG (HYG)

As pointed out yesterday, we need to watch the HYG vs. the SPY; you can see why in the chart below. Notice the recent separation, but more importantly, the tight correlation. They tend not to diverge for too long. 

Micron (MU)

Micron is jumping today following results, and a couple of sell-side shops raised their price targets. Regardless, the only thing that matters is that the stock can’t get over $52.75.  If it can close above $52.75, that would be a big win for the stock. 

Uber (UBER)

Uber is in talks to buy the food delivery service Postmates for $2.6 billion. It seems like Uber is looking to go all-in on food delivery. I tend to think that ride-sharing could be a problem in this coronavirus led world. $30.50 is resistance for now. 

Zoom (ZOOM)

Zoom fell out of the rising wedge yesterday, and I still think it drops to $230. 

That’s all for this morning.

-Mike

Mott Capital Management, LLC is a registered investment adviser. Information presented is for educational purposes only and does not intend to make an offer or solicitation for the sale or purchase of any specific securities, investments, or investment strategies. Investments involve risk and, unless otherwise stated, are not guaranteed. Be sure to first consult with a qualified financial adviser and/or tax professional before implementing any strategy discussed herein. Upon request, the advisor will provide a list of all recommendations made during the past twelve months. Past performance is not indicative of future results.

 

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