Stocks Jump On Hopes And Dreams Of Stimulus, Again

Stocks Jump On Hopes And Dreams Of Stimulus, Again

11.19.20

Stocks – AMZN, NVDA, BKNG, SHOP

Macro – SPY,

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Maybe it is the grey and cloudy day here on Long Island, but the market was just utterly boring to me. Just nothing going on, except a late day spike on some stimulus hopes. Outside of that, nothing.

The stimulus isn’t coming any time soon, I don’t know why stocks go up on this bogus news about talks. They haven’t even agreed on how to fund the government yet, but they are going to do a stimulus bill, common on man. It is not nonsense that the market even moves on this.

S&P 500 (SPY)

Tomorrow morning index options will expire at the open, so today may have been about positioning for that. I’m not sure. But most of the day, we traded flat. The index finished up around 40 bps, with most of the gains coming in the final hour.

On the S&P 500, resistance remains around 3,600. Support appears to be around 3,550 for now.

Nvidia (NVDA)

Nvidia even went nowhere today. Again, surprising after they reported better than expected numbers. But still, that excitement appears to be missing. It could be that the buyers are just tired or even finding new names to pile cash into. Whatever the reason, the stock did nothing, and the trend remains lower.

Amazon (AMZN)

Amazon’s chart continues to look less than impressive. Yeah, I know they can benefit from people being at home. But, hasn’t that all been priced in already. The chart looks terrible, along with an RSI trending lower.

Shopify (SHOP)

Shopify went up a little bit today, which was nice, but it failed to rise above resistance at $975. Not much really changed, and the RSI still says lower prices are coming; I agree.

Booking (BKNG)

Booking is still stuck around resistance at $2080 and can’t breakthrough. It is suggestive that the stock heads lower to fill the gap at $1800.

Take care

-Mike

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