Stocks jumped higher today on the new news about the old news from Moderna and its vaccine. The Russell IWM ETF was the best performing index, and to some degree, that does make sense given the news we already knew from Moderna.
It is kind of odd how Moderna rose just slightly more than the IWM. It kind of tells you how the Moderna news was not that stimulating. Look, I’d love a vaccine, but I want real data that shows real efficacy and safety. Not some fluff piece based on phase 1 hope, I have seen too many drugs produce significant Phase 1 hope to fail in Phase 3.
The IWM was strong but failed when it had to break out. So we’re left to wonder if the IWM can break out and push higher.
The Qs have been struggling this week. They ran up way too much. There is nothing wrong with a healthy pullback to the lower end of the channel. Option betting has been bearish since last week, so I think one needs to remain on guard.
Amazon (AMZN)
Amazon saw some bearish betting, too, just today. The company never cares about meeting wall streets expectation, and it has served them well. The stock is likely to continue lower, probably to around 2800.
Nvidia (NVDA)
The bearish bets for NVIDIA continue to pile up. I still think this one goes to 380, maybe lower.
Splunk (SPLK)
Meanwhile, Splunk continues to look very weak. If this software sector goes, the market may be in trouble. I think Splunk does go lower to around $170.
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