October 20, 2020
STOCKS – AAPL, PG, MRNA
Macro – SPY,
- Are Stocks Lossing Faith?
- Stocks Will Try To Recover Friday’s Declines – Morning
- Themes For The Week Of October 19
- Sector Rotation Turning Defensive
- Biden’s Lead Is Narrowing Over Trump
- Exxon’s Stock May Be Heading For A Reversal Of Trend
- Micron’s Shares May Jump 9%
- PayPal May Surge With The Market, But Not Without Risk
- Intel’s Stock Is Breaking Out
MICHAEL KRAMER AND THE CLIENTS OF MOTT CAPITAL OWN AAPL
S&P 500 (SPY)
Stocks are rebounding some on October 20, as investors continue to have hopes a stimulus deal will be reached. There is supposedly a deadline that is in place for getting a deal done, but my gut feeling is that the deadline will be delayed, and this process will continue to get dragged on. It will likely help to keep stocks afloat for a while longer and lift them back to around 3,482 today on the S&P 500 futures.
As I noted last night, you didn’t see the bond or currency market react as sharply in response to the stimulus worries as the equity market. So the sell-off seemed a bit overdone on the equity side. Again, today, you are seeing bond yield still floating around the 78 bps level. Clearly, a big stimulus would likely result in those yields rising. It seems as if yields are waiting to see what happens before making their next move.
Meanwhile, the dollar is waiting patiently, too, still around the 93.50 level.
There is a report that Apple iPhone 12 orders pre-orders are nearly double that of the iPhone 11. Still, the shares have struggled since the release of the new phones. The gap around $115 is now filled, and I think the stock will bounce and push higher towards $124.
Procter and Gamble (PG)
Procter and Gamble reported better than expected earnings and revenue this morning. As a result, the stock is jumping and rising back to its previous highs of roughly $145. This is a level of resistance for the stock, with a break out likely pushing the shares higher to around $154.
Moderna doesn’t exactly have the greatest looking chart, even though it is likely to report vaccine data in November. It looks like a head and shoulders pattern forming, but it needs to fall back to $54.80.
Enjoy the day!
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