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June 15, 2020
STOCKS – UBER, BA, ACAD
MACRO – SPY, QQQ
Mike Reading The Markets Premium Content – $35/Month or $300/Year
- Just Fillin’ Gaps Or Something More?
- Uber May See A Steep Decline
- Stocks Are Set To Sink – Morning
- A Massive Week Lies Ahead For The Stock Market
- Proceed With Caution – Morning
- S&P 500 May Test 3000 Before Days End Again
- MARKETS MELTS – BE CAREFUL
- A Quick Fade Or The Start Of Something More?
Michael Kramer and the clients of Mott Capital own ACAD
Stocks staged an impressive come back on June 15, after plunging to start the trading session by nearly 2.5%. By midday, it seemed like one of the typical gaps lower, work higher during the day to fill the gap. As of 1:59 PM, that was happening, with the S&P 500 starting to drift lower once again. But then the Fed issued an update to its plans to buy corporate bonds, and stocks took off.
The update was just that, an update, this program had been announced months earlier, and there was nothing “new” about it. We had been waiting for months for the Fed to start buying individual corporate bonds. The S&P 500 managed to get to as high as 3,081, and that is where it failed. That was the same spot it failed on Friday.
I’m not sure how to think about today. The index kind of finished in no man’s land. For the bears, it would have been best for the index to close below 3,050. For the bulls, it would have been best to close above 3,080.
The Qs managed to rally as well, but also closed below resistance at $340.
Still, this week has several headwinds for the bulls, including Quad Witching, and the S&P 500 rebalance. I went through all of this in the look-ahead for premium subscribers. Remember, it will be bigger then usual rebalance, because if you remember there was no rebalance in the first quarter. (Premium content – A Massive Week Lies Ahead For The Stock Market)
Uber was up a bit, but I saw some bearish options betting on this one today. Also, the stock is now below the lower bound of its trading channel, with the only holding up being support at $30.50. Perhaps it drops to around $28.50. (Premium content – Uber May See A Steep Decline)
Acadia filed its sNDA for Pimavanserin today for Dementia-related psychosis. Now we just have to wait for a PDUFA date and potential advisory meeting date. The drug is likely to get an advisory meeting since there are no approved drugs for the indication. The stock has been hanging on at that $43 level nicely over the last few months.
I’m kind of amazed at how Boeing moves around. Now it looks like it is ready to go back to $197.
That’s all I have today.
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