Ending 2020 on a Low Note?

Welcome to the Rude Awakening for Monday, November 30th.

Apologies for the late send on today’s update, as I am away from my computer and couldn’t record a video for you today.

The markets are slipping to the downside at the start of this week’s trading session, giving back on the gains we saw last week.

The S&P is down 27 points…

The NASDAQ down over 60 points…

And the Dow down nearly 340 points as I write.

As Yahoo! Finance reports:

Stocks fell Monday as investors gave back some of last week’s gains, which sent the S&P 500 and Nasdaq to fresh record highs and the Dow above 30,000 for the first time ever.

The three major indices were still poised to cap off November with major monthly gains, however. Based on Friday’s closing prices, the Dow was set to post a monthly gain of 12.9% for its best month since early 1987. The S&P 500 tracked toward a rise of 11.3%, and the Nasdaq headed for an 11.9% advance in November, which would each be the best gains since April this year.

Historically, November takes the prize for being the strongest trading month of the year, so seeing losses as we close out the month makes sense. But, given the volatility we have seen in the past several months, it begs the question…

Will this be a new downtrend we see to close out the year?

We just have to keep watching the candles.

If you remember, three greens or three reds will show us a trend.

Looking at the past couple of weeks, we’ve gone back and forth…

IMG 1

If the next few trading sessions continue this selloff, we might be in for a rocky end to the already tumultuous 2020.

But, like I always say, traders can trade in any environment.

With that, let’s take a look at the activity in some of our recent watchlist picks…

A Look at Watchlist Activity

1. Fuel Tech, Inc. (FTEK)

We alerted you to FTEK in our last update on Tuesday, November 24th. The stock had exploded that morning from the $3 range to over $6. Today, it’s trading in the $4.50 range after slight but consistent down days after that initial big green candle.

2. Aurora Cannabis Inc. (ACB)

We brought ACB to your attention last Tuesday, as well. ACB closed out Tuesday with about 30% gains, and has continued to shoot higher. From opening at $9.08 that Tuesday, it’s shot up another 27% to $11.50. Nice gains for only a few trading sessions…

3. Tempur Sealy International, Inc. (TPX)

Another one added to the list last Tuesday, for a bearish opportunity, SPX has mostly remained level throughout the past several trading days after flashing a sell signal. This one could still make for a good bearish play if it follows indicators.

4. Tesla, Inc. (TSLA)

TSLA is one we have been watching for a while. While my indicators all show the stock is overvalued, today’s trading session is the first in several trading days that might end in the red — and even still, only slightly. With its addition to the S&P 500, it’s likely we will see TSLA continue to go up through year’s end.

5. GoPro, Inc. (GPRO)

Another bearish pick, we alerted you to GPRO back on November 19th when it closed almost 14% below the previous day’s closing price. It’s been trading in the same $7 range ever since, down on the day, still with no real news triggering it, but investor sentiment is weak, leaning heavily toward its being overvalued. Still a good one for a bearish opportunity play.

6. Macy’s, Inc. (M)

Next up, Macy’s, which we also looked at on November 19th for a potential buy. Since then, M has been gaining traction, up from $9.18 on Nov 19 to the $10.40 level as I write. Down about 4% on the day, but with continued strength over the last week and a half of trading, this is one to keep on your buys watchlist.

7. Roku, Inc. (ROKU)

Lasly, we’ll look at ROKU, which was our number one watchlist pick back on Monday of last week. This one has been on our watchlist for BOTH a buy and a short, as it had shot way up in just the past few weeks. Since then, it’s stayed pretty flat, going back and forth between green and red candles. It remains to be seen where this one will go from here, but ROKU is up about 4% on the day, despite overall market weakness.

And with that, we’re all done for the day.

Have a great rest of your trading day, and we’ll be back with you tomorrow morning.

Talk then.

Regards,

Scott Stewart

Scott Stewart
Editor, Rude Awakening

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