Stocks Are Pointing Lower On July 20, Ahead of Expected Vaccine Data

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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July 20, 2020

STOCKS – FB, ZM, GE, NFLX

MACRO – SPY, 

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

 

Stocks are slightly lower this morning with the S&P 500 dropping by about 35 basis points on the SPY ETF.  The futures had been lower overnight, and appear to be trying to bounce back. 

Perhaps the markets are getting ready for vaccine data to be published in the Lancet from AstraZeneca. Not sure what time that comes out today. Astra Zeneca is trading lower by nearly 2%.

S&P 500 (SPY)

At this point, there isn’t much that has changed, with resistance on the S&P 500 futures still around 3230. 

Copper

Copper, a critical risk-on gauge, has been grinding higher along with the uptrend. If the uptrend should break, it would be bad for copper and bad for the market. 

Facebook (FB)

Facebook is trading lower this morning on reports that Disney slashed its ad spending on the platform. Again, we discussed this at some point over the weekend,  and the chart indicates that the stock is going nowhere fast. With a likelihood, it heads lower.  (Premium content – Disney Shares May Plunge By Up To 14%)

Zoom (ZM)

Zoom is trading lower today, and as we have been discussing lately, I continue to believe that the stock is heading lower with its next level of support around $227.

Netflix (NFLX)

Netflix will have a big test today at resistance at $495. If the stock can advance beyond resistance, then it is likely to start the gap-filling process back to $525. 

GE (GE)

On Friday, in a free story, I noted a lot of call activity in GE, and how it seemed that the stock might be forming a bullish reverse and head and shoulders pattern. The first significant level to watch for comes around $7.65. The trend for the RSI suggests the stock continues to rise. 

Have a good one

-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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