Stocks Will Try To Rebound On October 7 On Renewed Stimulus Hopes
Stocks will try to rebound on October 7 on hopes a stimulus deal can still get done.

Stocks Will Try To Rebound On October 7 On Renewed Stimulus Hopes

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.

Otherwise, enjoy the column!

Subscribe to the Monster Stock Market Commentary to get the Weekly Monster Market Commentary and join the 3,342 subscribers getting it for FREE!

The Daily Commentary has moved as of December 1, 2022

October 7, 2020


Macro – SPY

Mike’s Reading The Markets (RTM) Premium Content – NOW WITH A 2 WEEK FREE TRIAL

Stocks are rebounding some this morning with the S&P 500 ETF up 70 bps, and the Qs up 50 bps, after President Trump said he would sign standalone bills for stimulus. This all seems like a game so that each side can blame each other. I sincerely doubt anything gets done before the election.

S&P 500 (SPY)

When we can see when looking a bit closer at the charts that the S&P 500 futures are struggling around the uptrend, we fell below it late in yesterday’s trading session. Perhaps a quick recovery can invalidate yesterday’s late move lower.

I am still very much of the mindset that prices have further to fall from here, but we can see how today goes; the one thing you do not want to see as a bull is the index’s inability to hold that uptrend.

Amazon (AMZN)

Amazon got a big price target boost from Benchmark to $3,800 from $3,675. The stock has been stuck in this $3,100 to $3,200 since the middle of September. I still think this one that is going lower, back towards $2,800.

Netflix (NFLX)

Netflix had its price target raised to $650 at Pivotal Research fro $600. That is a new street high price target too. There is a downtrend that has formed in Netflix, with a potential descending triangle. The big test won’t happen until the stock gets back to $525.

JPMorgan (JPM)

JPMorgan has caught a bid in recent days as yields have increased, but to this point, it has been unable to retake the uptrend it broke below in mid-September. The stock likely struggles until it can break above what appears to be tough resistance around $105.

Freeport (FCX)

Freeport may struggle to advance, especially if the dollar continues to strengthen. The big make or break level remains at $14.90.

Have a good day.


Mott Capital Management, LLC is a registered investment adviser. Information presented is for educational purposes only and does not intend to make an offer or solicitation for the sale or purchase of any specific securities, investments, or investment strategies. Investments involve risk and, unless otherwise stated, are not guaranteed. Be sure to first consult with a qualified financial adviser and/or tax professional before implementing any strategy discussed herein. Upon request, the advisor will provide a list of all recommendations made during the past twelve months. Past performance is not indicative of future results.