Stocks finished the day lower with the S&P 500 falling by about 60 basis points and Qs, finishing the day down about 85 basis points. More importantly, the index and the ETF managed to hold their respective uptrends off the September 24th lows. 

The stock market fell slightly on some negative headlines around stalled conversations over a potential stimulus deal in the early afternoon. Overall, we saw a bit of a rotation today, with technology, discretionary, and financials lower. Materials had a decent day, along with energy and industrial. A little bit of the recovery trade taking place.  

At this point, it doesn’t seem as if the market is overly concerned about a stimulus not happening. If talks continue and hopes of a blue wave sweep remain the main narrative, I think the market should continue to trend higher, at least in the days up until the election. 

I do have some concerns that perhaps we could see a reversal begin a few days before the election, but at this point, those trends continue to remain bullish.  

Also, we had sizable call activity continuing, which helped keep the marketplace’s bid. There is an expiration on Friday, which could see a runoff of some options. But again, if the stimulus narrative stays and along with heavy call trading, we should continue to see equity prices drift higher with the S&P moving towards 3,600 and the Qs back up towards $300 to 305. 

Tesla (TSLA)

Tesla broke out today on some positive comments made by Ron Baron this morning. I often said that Tesla is much more than an auto company; it was a technology company that happened to make cars. I agree with the view that the story still has much further to go longer-term. In the mean-time, the stock is likely heading back to $475.

Wells Fargo (WFC)

Wells Fargo continues to struggle; its latest results didn’t help. The stock has failed multiple times at $26; if it falls below $21.80, it will have a huge drop ahead of itself. 

AMD (AMD)

AMD continues to show some bearish trends, with the negative potentially bearish head and shoulders pattern and the falling RSI levels. I still think this falls back to $75.

Acadia (ACAD)

Acadia has been moving nicely higher in recent days, and I think it still manages to find its way back to around $52.

Have a good one.