S&P 500 (SPY)
The markets are resilient, that is for sure. We did a get a mild mid-day pullback on headlines that a trade deal between the US and China may be delayed until December. But the market shrugged it off as if nothing ever happened, dipping to as low as 3067, filling a gap from Monday. Perhaps that was the pullback; maybe it was not, but it seems hard to deny that the strength of the market is very impressive.
I’m torn because I could easily make a case for the S&P 500 to climb from here or continue to see a mild pull, or what seems now more likely a sideways consolidation. But I’d hate to say it, I think the 2-3% pullback may not happen, and that perhaps I will be wrong, and that the march higher will continue from here. Maybe tomorrow will be more telling.
We can also see that the number of stock above their 50day moving has come down a bit.
It seems that perhaps we need to think differently about how the market will act going forward, the bid in the market place is undeniable.
Roku is not having a good afternoon falling to $120. It looks like this kid has still got it :P. The company is overvalued plain an simple. The multiples are beyond reasonable. Stocks priced for perfection and beyond, that then report inline results don’t go up. A decline back to $100 seems possible. Sorry.
Qualcomm is up about $4 and trading above $88 after reporting strong results. The stock could be on its way to a price not seen since the year 2000.
Tesla had a good day and is approaching resistance again at $333. If the stock can break above that price, $360 seems like the next stop.
Cisco seems like it is breaking out and is now on pace to reach our target of around $49.30.
Finally, Micron had a pullback today, but I think the stock should be fine and still be able to work its way into the low to mid-’50s.
Have a good evening.