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Healthcare Sector Review: 7/10/20
Vaccine Chase: Select stocks that have been involved in pursuit of a vaccine have seen their shares PRICES flourish. Others like a GILD have found the endeavor a bit sobering. It had some brief spurts of brilliance fade away very quickly, some in less than a trading session, and now the chart is taking on the look of a bearish rounded top. Two others that have been battling it out for supremacy are MRNA and NVAX. The chart below of MRNA is a bit appealing, now that it has shaved off more than one quarter of its value, although it is now resting near the comforts of its 50 day SMA which it has become familiar with in 2020. NVAX has behaved a bit superior, as it deals with the overhang of the very round par number for the first time. It has undergone an extraordinary run to say the least as it had a 3 handle this January. Getting back to MRNA it has been trading sideways between 55-67 and a break out of that range either way should give valuable clues as to where this play is headed into year end.
Technology Sector Review: 7/9/20
Round Number Restfulness: As many recognizable names are coming into contact with the round numbers, they are pausing to catch their breath. Looking at COUP, it kissed the round par figure on 3/12, the 200 number on 5/27 and is now touching 300. Once it penetrates that number decisively, or should better say if, will it find a rocket launch off it if tested again? DDOG broke fractionally above the very round 90 number (as stocks do that for the initial time they are likely to reach par and beyond), Tuesday and powered higher Wednesday above a bull flag formation. It attempted to CLOSE above 90 multiple times between 6/23-7/6, as it was above the number intraday SIX times, but ZERO finished above. Below is the chart of NFLX, and it should be interesting to see how it reacts, if it can firmly climb above the 500 figure. It is about 10% above its rising 50 day SMA, a line it came into contact with 4 separate times between 5/27-6/29. It may need to take a recess and revisit the line, but by the time that occurs PRICE will likely be near the 500 number. This uptrend shows no signs of letting up.
Technology Sector Review: 7/8/20
Dead Weight: As the SMH broke above a bull flag formation above 155 on Monday, some names within have not gotten the rally memo. Some have thrived like a NVDA up nearly 70% YTD, and currently dealing with the round 400 number (CRM and SPLK dealing with 200, SHOP 1000 and NFLX 500, and I feel this month AAPL will be magnetically pulled to 400). Below is the chart of AMD, which has received some love near 50 on a CLOSING basis on 5/27 and 6/29, but the name still trades 11% off most recent 52 week highs, while NVDA is sitting right near all time highs. For AMD, against the SMH, there was some glaring relative weakness, most noticeably the weeks ending 6/26 and 6/5. The week ending 6/26 the SMH fell 2.1% and AMD dropped 7.6%, and the week ending 6/5 the SMH rose 8.3% and the SMH dropped 1.3%. It is still reeling from the bearish evening star that was completed on 6/11, as it attempted to break above a bullish ascending triangle for a third time. The charts heaviness may be starting to wear on the bulls.