Stocks Are Getting Ready For A Short-Term Pullback

MACRO

Stocks put together a pretty solid day with the S&P 500 rising by almost 40 basis points to close at 3078. The index may be getting a little bit ahead of itself over the short-term before pushing even higher. There are just a bunch of gaps that need to be filled at lower levels as far as 3,025. Could we see a 2 to 3% decline over the next few days or the part of next week? It seems possible, and based on some other measure; the signs are there. I go through this and more in terms of why an end of year rally may be on the way may follow a short-term pullback.

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S&P 500, spx

STOCKS

Uber (UBER)

Uber is falling follow results to around $29.70. Still, the stock is nowhere it hasn’t been over the past month, and again most of the bullish option betting I was seeing was for January expiration. We can continue to watch, but I’m not throwing in the towel yet. Today, I noted the stock might rise to around $36.50 by January. We’ll see.

To be clear, I’m not some raging Uber bull; I’m not, they have lots of issues, but again my thoughts are related to how the options trades and the chart is set up.

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uber

Roku (ROKU)

Roku didn’t have such a great day now, did it? And to think the company didn’t even report results yet. If the stocks drop below $135, then $122 seems likely.

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roku, roku

Netflix (NFLX)

Netflix continues to trend higher, and that means that $300 is still on target.

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netflix, nflx

JD (JD)

Did you see JD.com? Wow, what a breakout, finally. Maybe now it can finally get back to $34.80 we have been looking for.

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Intel (INTC)

That call for Intel to pull back isn’t looking so good at this point. I think I’m wrong. $59 seems likely at this point. Oh well. I try. I’m not perfect.

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intel, intc