I don’t really have anything much to say today about the markets as we are now in a bit of a holding pattern going into next week’s FOMC meeting.
While gold stocks broke out this month in reality gold is consolidating in the $1380-$1450 zone. Silver had a big surge, but is now pausing too although several mining stocks are just going up almost every single day it seems. This is why we are laser focused now on a big stock play in my private group.
But the general public remains obsessed with the S&P 500. The stock market also is just drifting with a need for the Russell 2000 to breakout to provide some new momentum as I posted yesterday.
Here are four stocks that caught my eye last night when I looked through the charts.
UPS had a big surge this week on earnings. It didn’t just gap up one morning, but gapped up and went up all day long and the next day too.
UPS has been a laggard stock for over a year, but now seems to be coming alive. This is the type of action that will attract stock trading robots now.
However, while UPS soared yesterday stock market laggard TSLA collapsed again on a terrible earnings report in which it revealed that it’s losing more money than ever now.
TSLA gapped down on earnings to the shock of Musk believers, but the stock already broke down at the beginning of the year. All it did in June and July was have an oversold bounce that stalled out at the stock’s 150-day moving average. Reports that Musk’s second in command dumped all of his shares and has left the company yesterday is just another sign of the obvious.
This is a sinking ship.
But one entire sector I would still stay away from is the casino stocks. They were terrible last year as they dumped more than the market did, but this year too have been big stock market laggards.
Look at GDEN – which owns the Stratosphere casino in Vegas as one example.
Last summer Caesar’s and other casino companies reported that the occupancy on the Vegas strip was low. They predicted a Fall boom that never came. It will be interesting to see what these companies say about their earnings this quarter.
Although UPS had a big surge this week, most stocks have been selling their earnings reports. BA took a big hit this week and MMM had a big gap up and sold the open yesterday too.
MMM had a big gap up to its 150-day moving average on earnings, but sold it for an ugly reversal. Stocks that cannot go through that resistance level are in long-term downtrends.
This morning AMZN is gapping down on earnings while GOOG is gapping up with a $25 billion share buyback announcement. It will be interesting to see if it gaps and fades like MMM did or can go up strong.
Have a good weekend!
-Mike
