Stocks appear to be on the cusp of a breakout, and it will only take some follow through to start that next run higher.

Stocks Prepare For Pre-Election Day Rally

October 24, 2020

Stocks – UBER, INTC, QCOM

Macro – SPY, VIX

S&P 500 (SPY)

It was a rather dull Friday, again. But the S&P 500 managed to finish the day higher by around 35 basis points. it also managed to finish just slightly over the downtrend. Some solid follow through on Monday, would constitute a break out pattern, the start of a run higher towards 3605. 

The momentum and breadth of the market appear to be favorable to see some follow-through for next week. I still think there is a shot for the index to get to around 3,605 before the election, although the window may be closing if a move doesn’t start on Monday. 

VIX 

The VIX drifted lower all afternoon, and that drift is what helps to supply the energy for the index to rise, as implied volatility comes down, dealers need to up their gamma exposure to stay neutral thus pushing indexes higher.

Intel (INTC)

Intel was a complete disaster, and it really ruined my day. Certainly, a big disappointment. I think I have said that 10 times now. The only good news is that the stock held support at $48.20, otherwise nothing positive here. 

Qualcomm (QCOM)

Qualcomm’s chart looks rather bullish, with perhaps a break out coming early next week. 

UBER (UBER)

Uber continues to trend, and there is more room to run before hitting resistance at $38.

Back with more this weekend

-Mike

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