Home » Stocks Drop, But The Real Risk Comes Later This Week

Stocks Drop, But The Real Risk Comes Later This Week
Stocks seem unimpressed by today's ISM data, and that sets up what could be a big risk for jobs data this Friday.

Stocks Drop, But The Real Risk Comes Later This Week

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January 7, 2020


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.

s&p 500, spy

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

western digital, wdc

Square (SQ) 

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

sq, square

Micron (MU) 

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

micron, mu

Twitter (TWTR)

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

twitter, twtr

Beyond Meat (BYND)

Beyond Meat finally popped, and now it may on its way to $100 and eventually fill that gap.

beyond meat, bynd

Have a good night


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