It was a day of considerable chop in equity land, the SPX settling a little weak, -7pts (0.2%) to 3435. Meanwhile, WTIC settled -$1.67 (4.0%) to $40.03.
sp’weekly1b
WTIC daily
Summary
sp: As things are, we’re still set for a net weekly decline. I would note the weekly 10MA, currently at 3403. Indeed, 3400 is a pretty decisive line in the sand. If this week settles <3400, it will bode badly for next week, as weekly momentum is prone to turning negative.
wtic: a rough day for oil, back under psy’40. Today’s downside is even weaker than it might seem, when you consider the weaker dollar. Support in the $36s appears set to be challenged. Major support 32/30.
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Looking ahead
Thursday will see the latest Weekly jobs, existing home sales, leading indicators, and the Fed’ bal sheet (4.30pm).
Earnings: KO, T, AAL, LUV, FCX, NOC, PHM, INTC, COF, MAT
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PF chart of the day
The computer has a moderately bearish target of the $74s.
AMD, monthly
September marks a s/t exhaustion high of the $94s. October is seeing further weakness. I would note the monthly 10MA in the $62s… which is just above old resistance – now new support, of 60/58.
Earnings are due next Tuesday. Unlike INTC, NVDA, MU (and most other semicons!) AMD has never been significantly profitable. The outlook should be VERY positive. Whilst I really like the company, whose processors are currently ahead of Intel, the cautious will leave alone, not least on concern of…
Wilson of Morgan Stanley $MS calling for a 10% correction, with a viable 'sell the news' event.
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Its not a bold call, and if correct, the 3100/3000s would scare the hell out of the mainstream cheerleaders. pic.twitter.com/jrJpQntr6q— Philip Calrissian (@Trading_Sunset) October 21, 2020
Indeed, a 10% correction isn’t bold, and it would not dent the m/t trend. Wilson’s call is certainly something to consider, especially if this week settles <3400.
Ohh, and yes, if the main market is whacked by around 10%… the gold/silver/copper miners will get pulled down to some extent. That would make for an opportunity, and I’d expect Buffett/Berkshire to hit the BUY button to add more Barrick Gold (GOLD).
Goodnight from London