JANUARY 21, 2020

Stocks: TSM, MU, INTC, FCX, JD

Macro: SPY, EWH, COPPER

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• A Guide To All Of The RTM Tools And Spreadsheets
• Earnings Will Be Dominant The Week Of January 21
• Stock Are Pushing The Boundaries
• Technology Sector Now Has Bearish Pattern

Stocks are trading lower on January 21, with the S&P 500 futures falling by around 13 points of 40 basis points. It follows what has been a weak overnight session in both Asia and Europe, following a Moody’s downgrade of Hong Kong, and the IMF downgrading global growth. 

Hong Kong (EWH)

Hong Kong’s market fell by over almost 3% last night, to near a level of support at 27,950. 

S&P 500 

Meanwhile, the S&P 500 futures are trading lower, but more important is that the futures are now trading through the rising wedge I have been talking about for days. Currently, the index is managing to hold on to support at roughly 3,310. The next meaningful level of support comes around 3,295 on the futures.

Intel (INTC)

Intel was upgraded this morning to hold from an underperform with a $64 price target at Jefferies today. The company will report results on Thursday. Again, this one that I have thought would rise following results based on some bullish betting, and I have also been looking for the stock to rise to around $64. 

JD (JD)

JD.com is falling following the overnight weakness in Asia. A drop below $37.10 sets up a further decline to around $38.40 and then $37.20.

Micron (MU) 

Micron is down just a bit, but again this stock ahs been consolidation in the $55.60, and it needs to hold that support level to avoid a further decline towards $52.75.

Taiwan Semi (TSM)

Taiwan Semi has failed at resistance on two occasions around $60.70, and now the uptrend is breaking. It sets up the potential for the stock to fall back to $54.40.

Freeport (FCX) 

Freeport McMoran is moving lower and is in danger of falling apart here. Certainly not was I was looking for last week when I saw some bullish option betting. We need to be on watch for a further decline to technical support at $12.30 and then $12.  

Copper

Part of the reason for the weakness is because copper prices after appearing to have finally breaking resistance are giving back some today.

Have a good day!

-Mike

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