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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January 15, 2020
Stocks – SQ, PYPL, MU, SBUX
Macro – SPY
S&P 500 (SPY)
Perhaps the market is tired, some, I’m not sure. For the second day in a row, stocks managed to fade, giving back the majority of the gains. It doesn’t take much in the way of newsflow to get the algo’s taking prices lower. It is hard to tell sometimes on a day to day basis just what the underlying story is for the broader trend. It seems fair to say that the S&P 500 is trying to stay as close to the uptrend as it can without breaking it. Well, for now, anyway.
If the uptrend is violated, it could result in a pretty and sudden fall to support at 3,250 and then to around 3,230.
Despite all the optimism, I have seen signs that some are preparing for a return to volatility or a atleast a move low in equity prices. I reviewed this in my morning audio commentary for subscribers. Again, it could merely be the buying of protection, but it is hard to ignore and must be on the radar. Volatility On The Rise? Morning Commentary 1.15.20
Again, I’m not saying anything significant is about to happen, but one needs to be on notice and looking for the signs.
Square managed to pop its head above $70, which is a good sign. The trend still points to higher prices, and so perhaps $75 is next.
PayPal continues to work its way higher to fill the gap at $118.
Micron fell today, but again, the stock continues to hold support. At this point, that is all that matters. A drop below support at $55.60 means the stock goes to $52.75. Let us hope that doesn’t happen, I don’t want to be wrong with my call for the stock to rise.
Starbucks is challenging resistance at $91.50, and perhaps there is some further upside to around $93.35.
That’s all for today.