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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MAY 26, 2020
STOCKS – UNP, BA, JPM
MACRO – SPY, QQQ, EWG, XLP
MIKE’S READING THE MARKET PREMIUM CONTENT –
- Global Rally On May 25
- Earnings Trends For 5.22.20
- Testing Resistance – Midday 5.22.20
- Fillin’ Gaps To Start The Day – Morning Commentary
- Naz Uptrend Breaks, Midday
- Watch 2 Key Levels – Morning Commentary 5.21.20
S&P 500 (SPY)
Stocks are rising here in the US on Tuesday, playing a bit of catch up to a rally around the world on Monday. The S&P 500 ETF SPY is trading just a little bit above the $300 level to start the day, which takes us back to the highest level since March 6. At least at this point, it puts the next significant level of resistance for the ETF around $306. Whether or not the rally can continue from here is anyone’s guess? As I have pointed out, the market doesn’t have a strong economy or robust earnings growth on the table, in 2020 or 2021. So yes, the market is a discounting mechanism towards future growth, but maybe, in this case, it is for 2022.
NASDAQ 100 – QQQ
The Qs are butting right up against the upper end of its trading range, with a strong level of resistance around $235.
The German DAX had a big day on Monday and has now filled a gap up at 11,570. I guess the one thing that is interesting here is volume levels have been dropping off in this market.
Boeing finally broke out of its trading channel to the upside, with its next significant level of resistance not until $158.
Union Pacific (UNP)
Union Pacific is a significant industrial stock and could also help to lead the group along with Boeing. It has a big level of resistance to get through first, which could send it to around $179.
Staples haven’t been a great group, but one has to wonder if the XLP ETF is finally breaking out of a bull flag, with the potential to rise to around $61.
JPMorgan is rising some today and has room to rise to a downtrend around $94.25.
That will be all
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