June 17, 2020
STOCKS – AAPL, AMZN, NVDA
MACRO – SPY,
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- Stocks Fill Gaps, Trends Pointing Lower
- STOCKS ARE JUMPING ALL OVER
- Just Fillin’ Gaps Or Something More?
- Uber May See A Steep Decline
- Stocks Are Set To Sink – Morning
- A Massive Week Lies Ahead For The Stock Market
S&P 500 (SPY)
It has been a very volatile overnight session with stocks going from positive to negative, back to positive. The volatility levels in the market seem to have been amplified since the Fed meeting on Wednesday. This could be due to positioning ahead of quad witching on Friday.
As I mentioned last night, there is a downtrend that has formed for now, since the June 9 highs. Meanwhile, there has been a smaller uptrend that has formed off yesterday’s lows. It would suggest that by lunchtime, we will have a perfect idea which way the market will be heading with a break of the downtrend sending the index sharply higher. However, at this point, just given the length of the downtrend, it should serve as the stronger and more powerful trend, suggesting it is more likely the index breaks lower.
Don’t forget we have Jay Powell speaking yet again, to in front of the House.
Apple’s price target was raised to $390 from $345 at RBC capital. The stock has been getting a series of price target increases in recent days. I’m just wondering if those increases are due to a real improvement fundamentally, or if the higher stock price is driving those increases. Unforatenly, it seems to be very hard to tell, and but my hunch is that the higher stock price is driving the increases.
Amazon saw its price target raised to $3,200 at Needham, with the potential for shares to lift to 4,500 to 5,000 long-term. The stock has surely been hot, but the one thing that always seems to be an issue is whether this a revenue growth or earnings growth story. It matters because the difference in valuation is vast. For now, it continues to be a revenue growth story.
Nvidia has really done nothing these past few weeks, But the uptrend on the RSI is broken, and it is even moving lower. It would indicate that the stock heads lower from its current price. Potentially to $317.
Have a good one.
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