Stocks rose to on October 20, as they continue to ride the never-ending wave of stimulus hope.

Stocks Continue To Ride The Stimulus Wave Of Hope

October 20, 2020

STOCKS – NFLX, SNAP, MU, UBER

Macro – SPY, QQQ

Stocks managed to finish the day slightly higher, with the S&P 500 rising by around 50 basis points, regaining some of the losses from yesterday. Still, the index gave back a big portion of its earlier gain, after being up by more than 1%. The markets are still hooked on this concept that a stimulus is coming and was boosted mid-day on some positive talk about a potential stimulus from Nancy Pelosi. 

Still, to me, it seems like no deal will be had before the election, but it is in both party’s best interest to drag the process along so that the market remains stable or higher. I believe it is not in either party’s interest to have a volatile stock market this close to the election. 

S&P 500 (SPY) 

I still think the market can go higher into the election as politicians continue to drag the market along. There is potentially a bull flag forming in the SPX, and if that is the case, then we should see a break out later this week. 

NASDAQ 100 (QQQ)

There appears to be a similar pattern in the Qs but not as nicely laid out. 

Netflix (NFLX)

Netflix is falling after reporting revenue that beat estimates, with earnings and subscriber net additions missing. Additionally, guidance was disappointing as well. As a result, the stock is down about 6% and falling to support around $495. That is a big level that needs to hold, with a break likely setting up a drop to $475. (premium content – Netflix May Be Heading Lower Following Results )

Uber (UBER)

Uber had a solid day rising over resistance at $35.80. Hey, maybe it will hit that target of $38 I laid out last week. (Free story- As Uber’s Business Stabilizes, Traders Are Betting The Stock Rises)

SNAP (SNAP)

Snap is trading at its highest price ever. It took a few years to get back to those IPO highs, but it got there after posting better than expected results. 

Micron (MU)

Micron is still creeping higher, moving over resistance at $52.80 today, and still on a path to reach $55.60. (Premium content from October 15 – Micron’s Shares May Jump 9%)

Ok more tomorrow

-Mike

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