It was pretty much a waste of day with the S&P 500 going nowhere. The index finished the day down by about 15 basis points. The index went sideways all day, hovering just below resistance around 2975. I still think that the index is likely to fall and refill the gap over the next day or two at 2,940.
Despite my very short-term negative view, I continue to believe the stock market is heading higher into year-end. The significant overhang is currently Brexit, of course, which should have a resolution by the end of the month. But if earnings can manage to come in at a better than expected pace as they usually do, I think it creates the opportunity for a push higher into year-end, especially if we get a Fed that continues to ease on monetary policy. I highlight these catalysts and more in a video today.
Tesla had a good day rising over 3% on headlines that the Gigafactory 3 has started production, that’s the plant in China. Regardless, the stock is breaking out with one more hurdle coming in the $260 to $266 region. After that, the stock could move up rather quickly to fill a gap at $300. I talked more about this is in the mid-day update, BE CAREFUL ON COLUMBUS DAY
Shopify also had a good day, and with today’s move above $344, the stock could be heading back to $360.
Beyond Meat (BYND)
Beyond Meat fell to support at $124, and for now, it held. How long it holds is the question? My guess is not for long. A drop to $100 doesn’t seem that far off.
AMD looks like it is in motion, and is now heading the way we thought. A move to $31.40 is now in the works.
Nvidia looks like it is ready to break out at moments notice and start rising towards $198.
Have a good one
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