Stocks Will Try To Rally On Miracle Monday, October 5

Stocks Will Try To Rally On Miracle Monday, October 5

This column is my opinion and expresses my views. Those views can change at a moments notice when the market changes. I am not right all the time and I do not expect to be. I disclose all my positions clearly listed on the page, and I do not trade my account on the stocks spoken of in this column unless fully disclosed. If that does not work for you stop reading and close the page. Do not bother me or harass me.

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October 5, 2020


Macro – SPY, QQQ

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Stocks are rebounding some this morning, with the S&P 500 futures up about 80 bps and the Nasdaq QQQ up 1%. not quite the Miracle Monday type of price action we are used too but up none the less.

S&P 500 (SPY)

The S&P 500 looks a little iffy, and this may turn out to be one of those rare Mondays that doesn’t result in the market finishing higher. The futures appear to be forming a potential head and shoulders pattern on the intraday chart. But we need a break of 3,300 to confirm that bearish intraday pattern. Should that break of support happen, the index is likely to drop towards 3,200.


We can see that a similar pattern has formed a similar intraday pattern on the NASDAQ 100 futures as well.

DocuSign (DOCU)

DocuSign was upgraded today to overweight from equal weight with a $260 price target at Morgan Stanley. The stock has struggled recently to get out of this $220 to $230 region. Also, the shares appear to have some overhead resistance at an uptrend. A failure to advance beyond $235 likely indicates that the stock is heading lower from here, not higher.

AT&T (T)

KeyBanc downgraded AT&T to Underweight from Sector Weight and a $25 price target. The stock has been slowly grinding lower towards support around $27.35.

Starbucks (SBUX)

Opco boosted its price target on Starbucks to $101 from $85 and kept its outperform rating. The stock has been stuck around $85 to $90 for some time. A failure to advance beyond $90 is likely to lead to a drop to approximately $78.50.

Have a great day!


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