Stocks Slump On July 7 Closing At The Lows Of The Day
Monster Market Commentary

Stocks Slump On July 7 Closing At The Lows Of The Day

July 7, 2020

STOCKS – NVDA, ACAD, INTC

MACRO – SPY, QQQ

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MICHAEL KRAMER AND THE CLIENTS OF MOTT CAPITAL OWN ACAD

Stocks had a wild trading session, starting the morning lower, then rising, and finishing the session on the lows of the day, with the S&P 500 down over 1%.  At this point, it seems there is a good chance that the S&P 500 works its way lower still and tries to fill that gap around 3,130. 

The index just continued to fail all day at that 3180 region, picking from where it left off yesterday. It was also unable to surpass the gap fill from mid-day June and February downtrend. 

The Qs also turned lower today with the potential to work their way to the lower end of the channel once again. I went through this a little bit more this morning in the audio commentary; there is more to this than just the charts. – Markets Setting Up For 5-6% Dip

10-Year

10-year yields are on the brink of a significant break down once again, with a decline below 63 basis points. 

Nvidia (NVDA)

Nvidia’s rising wedge pattern is nearly complete; at this point, it just needs to fall below that lower uptrend. I think it will and then drop to $350 on the way. Again, I highlight this along with some options trades, and an insane valuation in this write-up yesterday. Premium content – Nvidia Is Priced For Perfection, May Have Topped Out?

Acadia (ACAD)

Acadia had an awesome day finally breaking out and jumping to a record high at $57! It got an upgrade from Stifel of all places, the analyst over there hasn’t been a fan of Pima over the years, so I view this as a positive. I think the stock still has further to rise, perhaps $61. 

Intel (INTC)

Intel looks lousy until to break out at $59.75, and an RSI that is drifting lower. I think $56 is the next stop. I had thought initially it might go higher, but that is unlikely at this point. 

Until tomorrow 

-Mike

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