July 24, 2020

Is This The Top Of The Ride?

With the Nasdaq looking scary today, talks of the Great Correction are beginning to abound. Intel, Tesla, and Microsoft are all looking a little bit worse for wear. 

On top of that, Gary Kelly, Southwest CEO, stated that their business will take 5-10 years to reach the levels that it was operating at back during the start of the year.

In the coming week, we’ll hear the big man Jerome Powell speak and learn how Amazon performed. On top of that, the next stimulus package should be dropping soon. With all of this uncertainty, we’re feeling that we’ll know shortly if this is that tipping point everyone’s been worrying about.

Hunker down and stay safe. If you’re not hedged, it might not be too late to buy some insurance….

The SPY Is Back

This week, the S&P 500 (NYSE: SPY) broke through key resistance at $320. Investors kept the momentum going until Thursday. Today, The SPY continued to consolidate in the same area it has been in early June and July. The Index that tracks 500 large-cap U.S. companies is starting to indicate that the market may be getting ahead of itself.

EVO has been heavily focused on the key level around of $320. Investors will watch if SPY can bounce off this past key level of resistance and use it as support.

Intel, a Tale of Woe

Intel (NASDAQ: INTC) plunged 18% today… sheesh.

Despite an earnings report that beat expectations last night, Intel announced that their highly anticipated release of its next generation of chips will be coming out 6 months later than expected.

This horrifying Intel drop is a warning to all of you Bulls out there—be careful.

We just hope that you were in AMD instead. AMD has been the star in recent years as its stock is up more than 3,000% since July of 2015. AMD and Intel have been battling for years. This let down by Intel could be the opportunity AMD has been looking for.

AMD share's ended the day up 16% at $69.40

#stocksonlygoup right?

Battery Drain

Tesla (NASDAQ: TSLA) shares tumbled more than $250 since Thursday morning. This dip might be indicative of a correction after the stock rose more than 260% in the last few months. 

Tesla Bulls may not be too happy to see this. But it is kind of ironic that everyone who bet against the stock is making money just after Elon Musk sold those sexy short shorts. 

Oh, and Tesla is suing Rivian now….

Let us know who’s going to come out on top, the bulls or the bears. Tweet us @EVO_trading!

Flying High

Gold hit a record high price today, topping nearly $1900 per Troy OZ, a number that has not been hit since 2011.

After COVID-19 put the world in a frenzy, global markets in limbo, and made most stock prices in 2020 extremely volatile, it looks like investors are finally starting to hunker down with safer assets. 

This is the 7th straight growth week for the metal, a statistic we haven't heard in nearly 10 years. We at EVO can only hope that it stays this way.

Your Weekly Forecast

It’s a critical week for markets as some of the biggest tech, including Apple (NASDAQ: AAPL) and Amazon (NASDAQ: AMZN), report earnings. Traders say need to justify high valuations on Nasdaq.

Senate Republicans will unveil their stimulus proposals, which could help determine the success of the economic recovery.

The Federal Reserve meets in the week ahead, and it is expected to emphasize that it will continue to do all it can to help the economy.

Finally, the first reading of second-quarter gross domestic product will be released Thursday, and it will show how hard the economy crashed after it was shut down to fight the coronavirus.