For anyone that is interested, I will be a speaker at this years Stocktoberfest West at the end of September.
Stocks had a dominant day with the break out now complete. The S&P 500 surged by over 1.3% and managed to advance above resistance today at 2975. But the key here is 2975 held as support all day long after the breakout, no typical, algo driven gap fill. That is very important and could suggest that 3,000 is around the corner. The most significant risk as always is the potential for the gap fill and retest of what is now support at 2935.
Tomorrow could prove as an opportunity to provide that retest for the newfound support level at 2935. We have the August jobs report at 8:30, followed by Fed Chair Powell speaking at 12:30.
So here is the chart, and you can support at 2975 and the gap down to 2935. I show you it in a video from today, if you want to visual see it:
The sign of relief came today when the US10year rose above 1.54%. Additionally, the downtrend is broken. I think this sets up the move higher now to 1.75%; we have been looking for to come.
The German 10-year had a big move higher today too, rising above -60bps, a big deal in my book. It signals that rates in Germany could be heading up to -40bps.
One stock that didn’t have a good day was Netflix. NFLXWealth Strength IndexNFLX is Moderately Flat and trending Up-Netflix-down--in-premarket-trading" target="_blank" rel="noopener noreferrer">There was a rumored report out NFLXWealth Strength IndexNFLX is Moderately Flat and trending Up was running light on international subscribers net adds for the third quarter. I don’t know how they collect the data and never heard of the firm that issued the data. When I checked Alexa.com to see how the website was ranking, it moved from 24 to 21, which is a big move. Alexa works by ranking website against one another. The higher the rank, the harder it is to move up. For example, Reddit is 19, and VK.com is 20. It doesn’t suggest weakness to me. Nor does Google Trends. I’m sure there will be plenty more reports to come.
Anyway, the good news is that the stock recouped all of its losses and finished higher. The pattern remains unchanged.
Twitter had a very good day rising by over 4.5%, to $45.31. Those options guys did it again. I wrote an article on Friday for my premium subscribers Why Twitter’s Stock May Jump Over $45, in case you’re interested. First two weeks free. Read it; if you like it, stay. If not cancel, I won’t bother you. The link takes you to the page for My Seeking Alpha marketplace service.
NXP Semiconductor is once again testing resistance at $106. I mean you have to think this time it finally breaks out? Maybe 115.50, finally?!
Amazon finally broke out, and now we can think about $1900 again.
Nvidia broke out today, I noted it in this free article, along with some bullish betting, sets up a move around $198. Nvidia’s Rally May Only Be Starting