Are We Back to an Uptrend?
Welcome to the Rude Awakening weekly review.
Recording just before the market open, even with the presidential debate last night, there is no real change in market futures.
Yesterday, we did see a buy signal in our Stochastics indicator, RSI is moving up, and volatility is dropping off.
Holding above the 50day MA, we want to see that three day candle to give us a definitive change in the trend.
Right now, we have two green candles in a row.
What’s Driving the Market?
Like we keep discussing, one of the main catalysts to this marketplace is the ongoing stimulus conversation.
It would be practically impossible that we’d see a package pass through congress before the election in a couple weeks, but the goal now is to get a verbal confirmation that a bill WILL pass.
That would be enough to drive markets higher.
We’re getting closer and closer to an inevitability that there will in fact be an agreement on more stimulus.
Stocks to Watch
The second driver we have now is Gilead Sciences (GILD). Their antiviral drug was approved.
This is a stock you’ll want to watch.
Another one is Bitcoin. The granddaddy of crypto has been in the news lately, hitting all-time highs going back to 2018.
And this is being driven primarily by the fact that PayPal will now start accepting Bitcoin as payment.
Uber and Lyft are also on our watchlist…
Both stocks are under pressure today as the California Court of Appeals reaffirmed the fact the companies will have to reaffirm their drivers as employees rather than independent contractors.
Uber and Lyft have said they’d essentially have to cease operations in California if the result holds up.
Watching the market today and in the coming days will be interesting.
Will we make a substantial shift back to an upward trajectory?
That’s it for this week.
We’ll talk again Monday.
Editor, Rude Awakening