It was a rotation day, with the S&P 500 rising by 58 basis points and the Qs finishing the day around flat. The rotation trade was notable and visible by the Momentum ETF (NYSE:MTUM) finishing flat, the iShares MSCI USA Value Factor ETF (NYSE:VLUE) trading higher by 2.4%, a rather wide range.
Clearly, another round of positive vaccine helped this rotation trade out. But more importantly, we can see that the vaccine news cycle has largely played out, and the narrative for higher prices isn’t working anymore. When listening to people on the TV, it sounds as if the world couldn’t be more perfect for the market, whether I agree with that or not is another story.
Stocks also got a boost following the mid-month PMI Flash reading, which was much better than expected. After having some time to think it through, the market gave back most of the gains. The better than expected data actually suggests that perhaps there isn’t a need for another big stimulus bill worth trillions upon trillions. Perhaps it means a smaller, more targeted package is appropriate to think about. The dollar realized it right away.
AMD
Notice how AMD yesterday rose to resistance at $87 and failed. Not the greatest sign for the stock. The stock has gone nowhere since the beginning of August, and it seems likely to head back to $75.
Tesla
Tesla (NASDAQ:TSLA) broke out yesterday, as I noted early in the chat update. For now, I’m leaving the next level of resistance at $575. It should probably be even higher than that, but I’m not getting ahead of myself.
Exxon
Exxon (NYSE:XOM) continues to rip, and if it clears $39.50, it probably has a path to $41.25.
Shopify
Oh, look, there’s a downtrend in Shop’s stock price to go along with the one in its RSI. A drop to $850 still looks reasonable, with a chance to drop to $740.
Netflix
Surprisingly Netflix (NASDAQ:NFLX) struggled yesterday despite getting a price target boost from JPMorgan (NYSE:JPM) to $628 from $615. The stock closed at $476 and is very close to breaking that support of $470. The RSI suggests that the floor at $470 does break.
