STRONG Market Open on Election Day
Happy Election Day, everyone! And welcome to today’s Rude Awakening…
3,200 Level: Springboard or Diving Board?
Markets are up again today, as we seem to be rebounding off that new level of support we’ve been talking about.
We are now seeing buy signals in all our technical indicators.
Our Stochastic is coming through, our MACD is turning toward the upside, and RSI is also showing a buy signal.
Volatility is starting to pick up a little bit…
Although, pricing has been pretty stable throughout the past few trading days.
As always, we’ll have to see where this takes us, but we’re looking at a very strong open to the marketplace.
And this is indicative of confidence going into the election…
However, don’t forget an important, if little known, reality about investing…
Cash Is a Position
Remember: Cash IS a position!
If you’re trading over the next few days, and you’re feeling the pressures of uncertainty in the marketplace, there’s no problem sitting in some cash.
Now, we do have a lot of activity today.
I mentioned this one yesterday, but again, one of the big companies I’m looking at is Wayfair Inc. (NYSE: W), one of a select few stocks that has absolutely benefitted from the pandemic and corresponding lockdown. Wayfair is a hub for reasonably priced online ordering, mainly focused on furniture and homewares.
Reporting earnings last night, they had absolute BLOWOUT numbers, beating expectations by almost $2.10, which is huge. The company is firing on all cylinders.
W dipped a bit at the open, but is starting to pick back up. This should definitely be on your buys watchlist.
Another company on my radar is 3D Systems Corporation (NYSE: DDD). They’re in the business of 3D printing products. They had recent highs around $8.23, but have fallen down some, to the $6.23 level. You might see some pickup off the stock’s 50day MA support level, with buy signals kicking in on DDD’s technical indicators.
The last one I want to give you to watch today, for a bearish play, is PayPal Holdings, Inc. (NASDAQ: PYPL). They’ve just reported earnings lower than expectations.
PYPL is in a downtrend, following the same pattern we were seeing with the overall market, and it’s below its 50day MA. Technical indicators on this stock are all pointing to sell signals.
Those are the trades we’re watching today, folks.
Have a safe trading day, and a good Election Day!
We’ll talk tomorrow.
Maybe by then we’ll even know who’s gonna be President… 😉
Editor, Rude Awakening