Stocks Fail Where It Mattered Most For The Second Day In A Row
Stocks failed to advance past key resistance for the second day in a row.

Stocks Fail Where It Mattered Most For The Second Day In A Row

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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September 29, 2020


Macro – SPY, QQQ,

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S&P 500 (SPY)

Stocks fell on September 29, with the S&P 500 and the QQQ ETF falling by approximately 50 bps. The S&P 500 failed to advance beyond the 50-day moving average again and held the downtrend.

The move lower in the S&P 500 this afternoon seemed to correspond with an accelerated sell-off in the corporate bond ETF LQD around 3 pm. Think wider spreads between corporates and treasury rates, risk aversion.


The Qs continue to struggle to advance beyond $277.

Micron (MU)

Micron reported better than expected fourth quarter results, but first quarter guidance appeared to very light of expectations. The company sees earnings of $0.47 at the mid-point of the range, and revenue of $5.2 billion, with margins of 27.5%. Estimates had been for earnings of $0.69, on revenue of $5.3 billion, and margins of 32.5%.

Now before the pandemic, my instinct suggests Micron would be trading pretty sharply lower on this guidance. Times are crazy, and the stock is flat. I highly doubt that the stock survives tomorrow being flat. I still happen to think you will see $45.50, maybe not tomorrow, but relatively soon.

Zoom (ZM)

Zoom shares are holding on to support at $465. That RSI seems to suggest that Zoom is likely heading to $425.

Amazon (AMZN)

Amazon doesn’t look super strong, with the stock failing around resistance in that $3,160 to $3,175 region. I still think this stock has further to fall. Maybe that comes after a break of $3,100.

That’s it got to run.


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