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June 28 – Stock Mentions: IWM, SPY, BKX, BAC, C
Michael Kramer owns IWM Calls
Russell 2000 (IWM)
Stocks had a pretty good finish to the second quarter, with the S&P 500 rising by around 55 bps. But it was once again the small caps that led the charge higher, with the Russell rising by 1.25%.
The Russell has been ripping higher the last two days and took out resistance at 1,566. The questions can it make it back to 1,600? I’ll get more into over the weekend.
S&P 500 (SPY)
The S&P 500 had a good day rising by 55 bps and closing right around 2,940. The index held the uptrend firmly today, and now there appears to be a clear rising triangle pattern that has formed in the index. It would suggest to me that the S&P 500 should break out on Monday and push to new record highs.
Now at least based on the options betting I have been observing in some critical pieces of the market such as Apple, The China FXI ETF, and the current setup in the broader market charts, we should get favorable results out of the G20 meeting this weekend.
Now I don’t know that using technical analysis and options betting is the greatest when it comes to high stake geopolitical, with a guy that got up and walked out of a meeting with North Korea. But my approach seems to work reasonably well. So We stick with our method. (Premium Content: Stocks Have Upside Following G20)
The banks had a great day with the BKX up nearly 2%. It has been a while since we talk about the banks in a positive light. We can see that the index is slowly rising over resistance at 97. It could lead to the index even increasing towards 104.
Citigroup has made it back to $70. Perhaps it even pushes towards $73.
Bank of America (BAC)
Bank of America is approaching resistance at $29.50.
See you tomorrow
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