12/22/20

Stocks – FOBU, AMD, FB, FCX

Macro – SPY, COPPER

Mike’s Reading The Markets (RTM) Premium Content – Get 2 Weeks Free To Try, Along With 20% off. 

• RTM MIDDAY: What Will Keep Stocks Rising?
• RTM Morning Note – Betting Big In Square
• RTM-MIDDAY: GAP FILLING ALGO’S, TRENDS LOWER
• RTM Options Analysis – AMD Seeing Bearish Betting
• RTM Morning Note – The Sell-Off May Only Be Starting
• RTM Week Ahead: Stocks Return To Pre-Pandemic Valuations
• Driving Subscriber Value – New Enhancements

Stocks finished the day mixed, with the S&P 500 falling by 22 basis points. Overall it seems like the market is out of energy; sure, there are pockets of stock like Fubo going up insane amounts in front of a lock-up expiration date, but hey, who cares if 20% of the shares outstanding are probably coming at you, with a borrow rate of 75%, and implied volatility at 170%.

It didn’t stop need Needham from putting a $60 price target on it today. So the stock went up even higher, closing at $62, up a cool 25%. (You can read more here- fuboTV’s Stock Is In The Middle Of A Giant Squeeze)

Just remember, with the stock up this much, the VCs will likely distribute their shares on the morning of December 30 to their partners. Those shares will likely be for sale.

S&P 500 (SPY)

Anyway, back to the S&P 500. The index struggled all day to get beyond yesterday’s highs, which is probably not a good sign of things to come. Lower prices still await.

Dollar

It looks to me like the dollar may finally be turning the corner with a push higher. There has been a hard push higher in the RSI, too, moving sharply up from oversold levels.

Copper

Copper took a hard turn lower, and I suspect this may continue. I reviewed this in the midday update. But briefly, the commercial vs. non-commercial futures positioning seems to suggest a short-term peak. Couple that with a dollar that is reversing, and the copper could fall back to around $3.30 pretty fast. (premium content – RTM MIDDAY: What Will Keep Stocks Rising?)

Freeport (FCX)

It means that Freeport could be in trouble here too. With a bump and run pattern in place. A break of support at $23.75 could spell trouble for the stock, with a drop to $21.

Facebook (FB)

Facebook is finally breaking down, just as we have suspected for some time it would. I think it falls to around $260.

AMD (AMD)

AMD is also falling out of that rising wedge pattern, and I think it will continue to $87.

Have a great night

-Mike