January 7, 2020
Stocks: WDC, MU, SQ, TWTR, BYND
Macro – SPY
S&P 500 (SPY)
Stocks were unimpressed by the better than expected ISM non-manufacturing reading of 55. It was only mildly better than estimates for 54.5. Meanwhile, the report revealed some weakness in the employment component, which has me feeling a touch nervous, heading into the job report on Friday. Still, growth seems to be fine, with the ISM reading corresponding to growth of 2.2% for the fourth quarter. A weak unemployment print could be the most significant risk to the equity market at this point. Premium content – The Biggest Risk To The Equity Market Comes This Week
It seems like at this moment, the S&P 500 is just marking time waiting to make its next move.
Western Digital (WDC)
Well, the options traders did it again, with Western Digital having a huge day, rising by over 7% following that upgrade this morning. The next level of resistance comes around $75.65. – Western Digital Is Nearing A Significant Break-Out
The options traders had a good day with Square, too, making them 2 for two on the day. The stock popped above the downtrend, and so did the RSI. I think that sets up a move to $67.35. Premium content – Square May Rise On Bullish Betting
The options guys were even betting on Micron late last week too. Man, how do they do it? Make them 3 for 3. An increase above $58.65 sends the stock to $61.40. – Micron’s Stock May Soar On Optimistic Outlook
I mentioned Twitter today in the mid-day updates, and based on the setup, the stock looks like it may be about to go higher. Premium content – Stocks Stuck In The Mud
Beyond Meat (BYND)
Beyond Meat finally popped, and now it may on its way to $100 and eventually fill that gap.
Have a good night