The S&P500 and SPY peaked late Wednesday evening at 2800/280, the largest gamma weighted OI strike. We continue to see resistance at this level until a catalyst firmly rejects the bulls or prices run above on some foreseen event. The risk is still weighted to bearish price action.
Summary
SPY Daily
Bulls do have the benefit of recent price action closing above Tuesday’s largely red day. Shorts covered at the 21d keeping the ETF above the absolute low. The result was a move higher and close above the 9ema.
We still believe price can be contained in this narrow band above the red line (23.6% Fibonacci) and the previous high set at 287.30.
Major resistance at gamma weighted strikes overhead aligns with the 50d, 61.8% Fibonacci, and ultimately the 200d at 301.34.
Bulls have their work cut out for them. Perhaps the catalyst to move higher will be States reopening their collective economies over the next few weeks. Stocks are meandering higher in the interim.
S&P500 (SPY) Most Active Stocks
While the S&P500 gyrates at this level, crude oil exploration and production stocks populate the most actives for another day.
| SYM | LAST | CHG | % CHG |
|---|---|---|---|
| CMG | 896.47 | +109.78 | +13.95% |
| LRCX | 270.44 | +26.81 | +11.00% |
| TWTR | 28.49 | +2.74 | +10.62% |
| HAL | 8.24 | +0.78 | +10.52% |
| APA | 9.43 | +0.86 | +9.98% |
| FTI | 8.25 | +0.72 | +9.56% |
| PXD | 80.22 | +6.75 | +9.19% |
| FANG | 34.26 | +2.86 | +9.11% |
| DRI | 68.52 | +5.20 | +8.21% |
| HES | 39.33 | +2.96 | +8.12% |
APA, FANG HAL, HES, FANG, and PXD were active this week. Click on the symbols above for the respective charts.
Look for higher lows and volume in these names.
Watchlist – Top 10 Results
The watchlist stocks outperformed again on Wednesday, with the top 10, ranked by percent gain, hailing from the Semiconductor and Technology industry groups.
| NAME | INDUSTRY | CLOSE | % CHG |
|---|---|---|---|
| ENTG – Entegris, Inc. | Semiconductors | 51.05 | 8.02 |
| AMAT – Applied Materials, Inc. | Semiconductors | 52.11 | 7.82 |
| GLOB – Globant SA | Software | 104.45 | 7.41 |
| KLAC – KLA Corp. | Semiconductors | 158.68 | 6.79 |
| FB – Facebook, Inc. | Internet | 182.28 | 6.72 |
| NVDA – NVIDIA Corp. | Semiconductors | 286.15 | 6.17 |
| AMD – Advanced Micro Devices, Inc. | Semiconductors | 55.92 | 5.67 |
| WDAY – Workday, Inc. | Software | 145.82 | 4.05 |
| EPAM – EPAM Systems, Inc. | Software | 200.81 | 3.52 |
| MSFT – Microsoft Corp. | Software | 173.52 | 3.40 |
Look for continuation in these stocks as INTC reports after the close.
If we see strength in all sectors again today, that could be another catalyst to push the S&P500, Nasdaq, and Russell 2000 higher this week.
Join us today in the trading room for our LIVESTREAM broadcast
during market hours, as we navigate the current environment. Watch, listen and trade from 9:20 AM to 4:15 PM Monday through Friday.
Happy Trading,
Vinny
Want to become a member? Check details here:
Disclaimer: Do your Own Research
Our content is intended to be used and must be used for informational purposes only. It is very important to do your own analysis before making any investment based on your own personal circumstances. You should take independent financial advice from a professional investment advisor in connection with, or independently research and verify, any information that you find on our Website and wish to rely upon, whether for the purpose of making an investment decision or otherwise. Trades and or positions listed and taken from the watchlist are my own and should not be considered “advice” to enter any particular position or asset.
Investment Warnings
We would like to draw your attention to the following important investment warnings. The value of shares and investments and the income derived from them can go down as well as up; Investors may not get back the amount they invested – losing one’s shirt is a real risk; past performance is not a guide to future performance.
Live Sessions
Live broadcasts are educational in their content. Proper risk management is considered on every trade or asset mentioned.
*** Stocks highlighted are for information purposes only and should not be considered as advice to purchase or to sell mentioned securities.
As always, the use of technical and fundamental analysis is encouraged in order to fine-tune entry and exit points to average seasonal trends.
These mentions are stocks that we may or may not decide to trade as outlined in the watchlist. Always use a stop.