Last weekend, I discussed how the Nasdaq Composite was holding up better than the S&P 500. It was nice to see the S&P hold its 50-day/200-day/10-week levels (around 3000) and the Nasdaq also saw more accumulation during the week to close at an all-time weekly high. Overall, I remain bullish because the technicals are strong, the leaders are acting well, the Fed is on our side, and sentiment is very muted (especially considering the market’s strength). One negative is that many of the leaders are technically extended, but we could continue to see sector rotation to keep the averages propped up. In other words, some of the extended names could correct (through price or time) while money rotates into some of the lagging sectors. Either way, I would stay focused on the leaders and I try to present some safer entry points for many of them in this video. Good luck this week and see you Monday, July 6th at 7PM EST for the next Stock Screening Webinar. Enjoy your long weekend!
Here’s the link to the Sentiment Trader chart I shared at the 12:00 mark: https://twitter.com/sentimentrader/status/1276596211101978625
Unusual Option Activity:
7/2/20 Lam Research (LRCX) buyers of 2,500 July 10th (W) $340 calls from $2.40 to $2.85
7/2/20 DataDog (DDOG) buyer of 400 November OTM $115 calls for $6.60/$6.70
7/2/20 OKTA with 500 January $310 calls bought for $4
7/2/20 Alteryx (AYX) with 150 August $175 puts sold to open from $16 to $15.65
Topics covered:
1) 0:00 Announcements
2) 4:50 Market Commentary and Index Review – Nasdaq Composite and S&P 500
3) 13:30 Stock Review – Leaders Focus List: AMZN, COUP, AYX, OKTA, FSLY, DDOG, DT, DXCM, VRTX
4) 20:05 Stock Review – Semiconductors: NVDA, IPHI, KLAC, LRCX, QRVO, SMH
5) 22:25 Stock Review – General Commentary: TEAM, TDOC, AKAM, NEO
6) 25:50 Stock Review – 5 Stocks for the Second Half of 2020: SGEN, CHGG, IDYA, CRWD, CRNC
7) 35:55 Conclusion/Summary