The Sell-Off Isn’t Over And The Worst May Be Yet To Come
Clearly, the sell-off isn’t over, and once again, the market proved me wrong, you can’t win them all. Apparently, nobody wants to go long into the week end ahead of the China market opening where there is a high likelihood the market could be down quite a bit. It seemed after a tense week of trading, the 3,245 region was strong support, but clearly, that is no longer the case. Very disappointing, and not what we wanted to happen.
S&P 500
More damaging was the uptrend in the S&P 500 (SPY) has been completely broken, and that is not a good sign either. It put a support region at 3,216 in play, followed by 3,200. After that there is a long way to go to perhaps to as low 3,150.Premium content – Lots Of Damage Done To The Charts
Amazon
Amazon (AMZN) had a good day but failed at resistance, which was the old highs of 2060. We will have to watch how this one continues to trade, but I suspect this will not be an easy level for the shares to break through.
Tesla
Tesla (TSLA) was up, continuing its hot hand, and shares could still head much higher. Consider that the stock is still trading below its June and March 2017 price to sales multiple, the last time it was at an all-time, of just over 3.
Currently, analysts see revenue rising to $40.88 billion in 2021, so at 3.1 times sales, the market cap increases to around $127 billion or about 9 percent higher on the stock, or to $705. The stock is consolidating nicely just below the after hour highs of $662 we marked off earlier this week.
Apple
Apple (AAPL) fell hard, as it should given its exposure to China. It gave back all of its post-earnings gains but managed to hang on to support at $311.
Netflix
Netflix (NFLX) to hold support around this $340 level. I noted a nice option traded on Netflix earlier this week in the premium areas. Why Netflix Stock May Have Bottomed
Roku
Well, it looks like Roku (ROKU) finally broke down. It dropped below support at $128 and plunged to around $121. Oh well, that sucks. I guess I was right after all.
Disclaimer: This article is my opinion and expresses my views. Those views can change at a moment's notice when the market changes. I am not right all the time and I do not expect to be. I ...
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