Markets clawed back their losses from yesterday. The IWM is leading the way while the SPY, QQQ, and DIA are all about even. Crude oil continues its epic climb, though it may be finding some resistance for the moment. It may need to take a breather before it pushes off its next leg. However, this sector really looks good despite the problems.
On the other hand, natural gas continues to look horrendous. Any rally is sold. At some point, they will just start giving it away for free. I wouldn’t be surprised to see something occur akin to crude oil where prices go negative and the industry gets a massive shake out.
Gold and bonds are both up a slight bit on the day. Neither is really doing much. However both of them are up in the face of a rallying market, which is unusual.
The VIX seems to want to stay below $30. It put in a low recently of $26. If it can close below that ,I believe we get short-squeeze to the upside in stocks.
Otherwise, this market still remains a difficult one to trade. It’s chopping up a lot of momentum traders. So just be careful out there.
Some of the top stocks that are reacting to ease-down lock down include Trade Desk Inc (NASDAQ:TTD)
TTD Hourly Chart
Dave & Buster Entertainment Inc (NASDAQ:PLAY) – Dave & Buster’s has been pretty volatile since the whole pandemic started. Many people wondered if they would survive. This trade is against the recent crossover to the upside. You can see how the stock jumped to start today which brought the 13-period moving average above the 30.
PLAY Hourly Chart
Stamps.com, Inc (NASDAQ:STMP) – Initially, I thought STMP would hold the 30-period moving average. However, it looks like it may want to break through. If it closes any lower than this, bears will look to take over.
STMP Hourly Chart
Expedia, Inc (NASDAQ:EXPE) Here is a great example of a bullish flag pattern. The orange solid lines connect the highs and the lows of the candlesticks. They are converging slightly. The dotted arrow highlights the flagpole. This is typically a continuation pattern that should lead to higher prices.
EXPE Hourly Chart
Johnson and Johnson (NYSE:JNJ) – JNJ made a bullish move to start the day before it pulled back. It’s riding the 200-period moving average which I expect to act as support.