There was considerable price movement yesterday as the bulls and bears battled for control with MSFT and AAPL leading the QQQ its first close below its 50-day average since April.  With the weekend approaching, a light day of earnings and economic news, as well as September options expiration, expect price volatility to continue.  Plan your risk carefully as you consider the uncertainty of the weekend ahead.

Asian markets seesawed overnight but ultimately find the inspiration to rally, closing green across the board.  With a significant spike in coronavirus and new shutdown measures taking place, European markets trade cautiously mixed but mostly lower this morning.  US Futures traders flat to mostly lower overnight, but as the morning pump begins, they have rallied off overnight lows with the tech sector leading the way. 

Economic Calendar

Earnings Calendar

On the Friday earnings calendar, we have a very light day with just one company expected to report today.  That stock is TC and not at all notable unless you happen to one the sub-$1.00 equity. 

News & Technicals’

With MSFT and AAPL under selling pressure, the indexes struggled yesterday with punishing intra-day whipsaws that kept traders on edge.  The QQQ attempted to recover its 50-day moving average but ended the day closing below this psychological support.  With US Futures mixed this morning, it’s understandable that there may be a little apprehension as we slide into the uncertainty of the weekend.  Today is the last day trading for September options, so as traders unwind positions would may see and an extra dose of price volatility.  Should the bears find the inspiration to rally, keep the resistance above with the downtrend created by this week’s lower high.  Head fakes and intra-day are pretty common on options expiration day, and with the VIX still hovering above a 26 handle, traders must prepare for anything. 

With just one small-cap stock reporting and a light day on the economic calendar, there won’t be much to react to except election news and political spin.  I would not be at all surprised to see a choppy consolidation day.  I wish you all a profitable Friday and a Fantastic Weekend!

Trade Wisely,

Doug