Stocks Are At A Crossroads As The Second Half Begins

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 – ZM, INTC, FCX

MACRO – SPY, GLD

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

It was another bullish day for stocks, that was aided by a massive $5.3 billion to buy on the closing cross. It sent the index sharply higher in those final minutes. Still, one has to wonder what the trend will be as we enter the second half of the year.  As of today, the downtrend from the early June highs is still in place. Also, the RSI is pointing lower. We need to see the S&P 500 break above the downtrend and resistance at 3,115, to get a push higher. For now, that will be the most critical level to watch for the index. 

From another viewpoint, the chart I pieced together over the weekend, the one with the descending triangle. It is still in play, so the rest of this week could be interesting. I’m not quite sure how it will play out at this point.

It seems we are crossroads for the S&P 500, break above 3115, and we likely rocket back to the June highs. Fall below 2990, and we return to May lows. It seems fitting that we get all this critical economic data this week. 

Let us hope it goes better than Chicago ISM PMI did today; it was a horrid 36.6, which was worse than expected for 44.5. If the ISM comes that weak tomorrow it will not be a good day for stocks. Expectations are for 49 on tomorrow’s ISM manufacturing report.

Gold

Gold had a good day and is on the verge of a massive break out, which could send it back to its all-time highs, around over $1900.

Zoom (ZM)

Zoom continues to look reasonably weak here. It did rebound some, but I’m not a fan, and the rising wedge is the prominent force with a decline to $225 still on the horizon.

Freeport (FCX)

Freeport may still have some further to rise, especially with the surge in copper price. There is a gap to fill around $12.05.

Intel (INTC)

Intel is testing resistance at $59.75, with the potential for shares to push higher to $64.

Anyway, that’s all I have for today.

-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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