Let's Kick It Off With the Good News
There's good news and there's not so good news. Plus, BIDU, AMZN, INTC, NU, NOC, and FLR.
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The Market
Since I feel as though I have been Debbie Downer lately, let me start with a bit of good news. Nasdaq had fewer stocks making new lows today than the last few days. I won’t mention that Nasdaq did not even come down to last week’s low, because, as you can see, new lows had been trending higher even when the market was rising. This is the first sign that some of the selling has abated.
I cannot say the same for the NYSE, though. The new lows did not expand but rather clocked in at the exact same number we had Friday.
The other big positive is that the Utes clocked in their third straight day of gains and still no one is talking about them. There is some resistance up here, but improvement in the Utes is always a plus.
What was not terribly good today was breadth. On the NYSE, it was slightly down and even net volume was flat. And all of this while the Russell 2000 was up. Also, the Transports had that terrific pop and they are now red for four straight days.
But I do want to note that some of the Chinese stocks were up today. Baidu BIDU which I recommended a couple of weeks ago (around 90) has been creeping up in the last few days. PDD was up as was TCOM. BABA was not but I haven’t been onboard with BABA.
Finally, a week ago I said if NVDA was down heading into earnings I might like it but it rallied too much today, which, for me, makes it a coin toss now.
New Ideas
Just prior to the election, I noted that Amazon AMZN was poised for a breakout and that over 200, folks would like it. I suppose because everything rallied, AMZN did not get as much attention as I thought it would but it’s still a good chart.
Today’s Indicator
The McClellan Summation Index is still heading down.
Q&A/Reader’s Feedback
I have thought Intel INTC is trying desperately to bottom for a few months now. I still think so but I also think it is going to take a long time. I would love to see it back in that 22-22.50 area and do again what it did in October: just a chop and grind before lifting again.
Nu Holdings NU has left a double top overhead. The good news is that it measures into the 13-ish area. There is support 12.50-13 but this is not my kind of chart as it looks to me as if it’s now possible the bounce from support could just give us a right shoulder of a head and shoulders top. I’d say let’s get the bounce and see how it looks.
Northrop Grumman NOC will come into support around 480 but the fact that it has broken the late October low doesn’t give me much confidence that whatever bounce it gets from support will be great. If it is going to be good it will need time to develop.
Fluor FLR has left an island overhead (bearish). I would like to see the stock make its way down toward the line over the next few weeks since that would test the line and tell us if it wants to hold. The longer it takes to get there the more likely it is that it holds.
