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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June 26, 2020
STOCKS – DIS, AMD, FB
MACRO – SPY, QQQ
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- Facebook Adding Fuel To Fire – Midday
- Disney Shares May Plunge By Up To 14%
- Winds Are Swirling
- Stock Testing Critical Resistance
- Stocks Face A Challenging And Important Day – Morning
- Betting On A 10% Drop In AT&T
- Nasdaq 100 May See A Sharp Reversal Short-Term
- Betting Indicates Facebook Falls
- The New Week Faces Headwinds – Morning
S&P 500 (SPY)
Stocks had a very rough day with the S&P 500 falling 2.4%, and finishing the day off at 3009. The index closed at the lows of the day, it attempted to rally in the final 30 minutes, but that giant Russell rebalance just finished off was a terrible day. There was a monster sell imbalance of over $5 billion and just sent everything sharply lower in the final minutes of trading.
The next significant level is the 2,960 level in the S&P 500. That is the low of last week, and based on the breakdown in the RSI, we likely to get there to start next week. The uptrend for the RSI is totally shattered, and more critical is that the RSI fell below its own level of support today.
The more significant question is what will become of the Qs. The index closed right on support at $240, and that alone is not enough to tell us what happens next. But look at the RSI and that downtrend. I’m going to do more work on this, but I don’t see how the NASDAQ can rise and the S&P 500 fall; they have too much in common up top. If that uptrend breaks, and we close below $240 on Monday, it will not a good sign of things to come. I have been talking about this most recent turn since Tuesday – Nasdaq 100 May See A Sharp Reversal Short-Term.
Facebook was crushed today, as companies start pulling ads from the platform. The only saving grace was that the stock did not close below support at $213. I think that level is in jeopardy, with a drop to $195 more likely. Volume most certainly returned. Again options traders were betting on June 22 the stock would drop. It looks like they were right. I noted in a subscriber write-up. – Betting Indicates Facebook Falls
AMD got crushed today as part of the Russell rebalance; there were a few million shares to sell, which took the stock sharply lower, with nearly 15 million shares trading just on the closing cross. Wow.
Ok, that’s all…
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