April 14, 2020
Stocks – JPM, JNJ, BAC, INTC
Macro: SPY, QQQ
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Here are some recent titles:
- Stocks Fall With The Potential For More To Come – Midday
- Seeing A Lot Of Bearish Options Betting – Morning Commentary
- Getting Ready For Earnings Season – The Week Ahead
- Short-Term Rally May Be Coming To An End
- Stocks Rally But Some Sectors Are Critical Spots
- Big Bets Nvidia’s Stock Drops
Stocks are pointing to higher opening today, regaining some of its losses from yesterday. It seems a bit confusing to me at the moment in terms of what happens next, because there is so much going on at this point. The momentum is clearly behind stocks rising, but at the same time, the disconnect from what is happening in the market place and the economy grows more significant. The risk/reward ratio appears to favor the downside and not the upside.
S&P 500 (SPY)
The technical setup in the S&P 500 continues to indicate that stocks are likely to move lower towards $263 on the S&P 500 ETF. But we can wait and see; the markets don’t seem to agree with me lately.
Nasdaq 100 (QQQ)
The QQQ is also showing some signs of fatigue, with two bearish patterns forming, a bump and run, and a rising wedge pattern. It would indicate that the ETF falls to around $192.
So we can wait and see what happens.
Johnson and Johnson (JNJ)
Johnson and Johnson reported better than expected earnings and revenue. But the guidance was cut, as widely expected. The company now sees earnings of $7.70 at the midpoint of the range, versus prior guidance of around $9.03 at the mid-point. Analysts had been looking for earnings of $8.08. The stock is rising by about 4%, so perhaps it is better than the whisper number, but still, resistance appears to be around the $144 to $145 region. The pattern in JNJ isn’t all that different then what we have seen in the S&P 500.
JPMorgan reported results that missed on both the top and bottom line. It will be what the company talks about on the conference call. At the moment, the stock is unchanged, and should it fall below $97.50; the stock could fall to around $87.50.
Bank of America (BAC)
Bank of America will report tomorrow, and this stock has fallen below an uptrend and is sitting on support at $24.25. I had seen some bearish betting in BAC yesterday, and the chart indicates the stock could fall to $19.50. Free article Bank Of America’s Stock May Drop Sharply After Results
Intel is rising in a trading channel and is now trading at resistance at $59.75, and is moving towards the lower end of the range. A break below $56 sets up a drop to $53.60.
Good luck today!
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