Stocks Have A Disastrous Roller Coaster Trading Session On September 30
Monster Market Commentary

Stocks Have A Disastrous Roller Coaster Trading Session On September 30

September 30, 2020

STOCKS – BKNG, INTC, SHOP

Macro – SPY, 

Mike’s Reading The Markets (RTM) Premium Content – NOW WITH A 2 WEEK FREE TRIAL 

That was one of the most bizarre trading sessions I have witnessed in some time, with future sharply lower overnight and then zooming higher after the open, to come crashing down in the final hour or so. There was a nearly 3% range on the S&P 500 futures from bottom to top, hoping for a stimulus deal. 

The futures finished the day below the downtrend and below the moving average. It gives me the sense of a failed breakout attempt. But with a lack of confirmation from the S&P 500 cash market, we are left to wonder what tomorrow holds. My feeling is that the futures drift lower overnight; we can put this into the camp of a failed breakout for the S&P 500 cash market too.  If that is the case, we should find ourselves trading back below 3,300 relatively soon. 

Booking.com filled the gap at $1,725 and appeared to be forming a bullish ascending triangle. Perhaps it leads to an advance to $1,795.

Intel is very close to making a big move, potentially higher. It is now flirting with a break out at $52.20. If that happens, it has a big gap to fill. The RSI continues to trend higher, and momentum is entering the stock. It looks 50/50 now, but a break of resistance will be a big plus for Intel.

Shopify keeps losing more and more momentum. The stock’s RSI continues to move down, and I think this one is heading below $850. This is a hunch on my part. Typically, when you see such a negative pattern on the RSI, the stock price isn’t too far behind. 

We’ll leave it there. I have only been working half days this week :). 

-Mike

Mott Capital Management, LLC is a registered investment adviser. Information presented is for educational purposes only and does not intend to make an offer or solicitation for the sale or purchase of any specific securities, investments, or investment strategies. Investments involve risk and, unless otherwise stated, are not guaranteed. Be sure to first consult with a qualified financial adviser and/or tax professional before implementing any strategy discussed herein. Upon request, the advisor will provide a list of all recommendations made during the past twelve months. Past performance is not indicative of future results.