S&P 500 (SPY)

Stocks manage to stage an impressive comeback, with the S&P 500 trading lower by about 1% to start the day, while managing to finish lower by just 15 bps. For the moment, the path to 3,600 is still intact, with the index likely heading there before the election. My focus remains on the market moving higher until the election –after the election is a whole other story. 

NASDAQ 100 (QQQ)

Meanwhile, the Qs remain on a path to around $305, also by around the election.

Again, between now and the election, the market is still watching those polls, and the polls haven’t changed. As long as the polls stay wide, the market is convinced of an easy Biden win, and the Senate appears to be slipping away from the Republicans.  So, the market will continue to play the massive stimulus card. 

Yields 

Meanwhile, yields in Germany have fallen dramatically, back to nearly their lowest levels since March. Watch those German yields; they tell the tale of what is happening in Europe, and not all is that great. 

That is resulting in the spread between US and German 10-year yields to widen rapidly. 

Dollar

This should result in the dollar strengthen materially versus the dollar. While I think it is likely to keep a lid on the dollar until the election. After the election, depending on the results, you could see the dollar strengthen massively, which would be bad news for all risk assets. 

Micron (MU)

Micron is getting close to moving up and moving higher. There was also some bullish options betting in the stock. It could be why I think it heads to $55.50. 

AMD (AMD)

AMD found some support at its 50-day moving average. Lets see how long that last. 

Twitter (TWTR)

Twitter may have some problems now that Republican are looking into section 230, that give social media platforms a lot of protections. The stock certainly doesn’t seem to care. The stock has really performed nicely and remains in that upchannel, while the RSI is trending lower, a bearish divergence.

Facebook (FB)

Facebook finds itself in the same positioning, and this is a story is one that should be watched.

Night