Wall Street Strategies
Hello! Sign in or Register

Morning Commentary

Can Strong Start Hold?

By Charles Payne, CEO & Principal Analyst
9/28/2020 9:20 AM

Friday session gained power after Florida announced it would allow restaurants in the state to operate at 100% capacity.   Even before the headline, the so-called reopening trade was leading the session after an upgrade of cruise lines at Barclays.  This morning looks to be picking up the momentum.

Of course, reopening is the ultimate key to the stock market and movement in those names should make us all more optimistic. In the end it is all about technology, as the mover of major indices.

Information technology services names lead the way, as business software names powered ahead of the pack. 

S&P 500 Index



Communication Services XLC



Consumer Discretionary XLY



Consumer Staples XLP



Energy XLE



Financials XLF



Health Care XLV



Industrials XLI



Materials XLB



Real Estate XLRE



Technology XLK



Utilities XLU




Market breadth obviously improved but there were still more 52-week new lows than new highs.

Technology (XLK)

The technology sector sees some resistant at 114.22, but the big test comes at 116.50. Beyond there, I do not see a lot of resistance to a quick retesting of the high.

The S&P 500 has made a perfect series of lower highs and lows and needs to close above 3,400 to reverse bias and perhaps power move to retest the all-time high.


Hotline Model Portfolio Approach

No changes.


Today’s Session

There will be more urgency for those folks with cash burning a hole in their pockets.  The focus will be on reopening and technology. 

It will be interesting to see if the rally attempt holds, as conventional wisdom shifted this month to “sell the rip” from “buy the dip”. 

Stocks to Focus

Cruise Lines

CDC “no sail” order set to expire on Wednesday.

Tesla (TSLA)

Deal with PLL and buying LG Energy Solution.

Boeing (BA)

May get 737 certifications in Europe by end of the year.

Netflix (NFLX)

Sell rating but firm target $420 from $425 (stock is up).


Tortoise Acquisition (SHLL) to finalize its merger with Hyliion.

Virgin Galactic Holdings, Inc. (SPCE) Received two upgrades.


Thor Industries, Inc. (THO) posted Monster Earnings.


Add Your Comment

Submitted comments are subject to moderation before posting.

Home | Products & Services | Education | In The Media | Help | About Us |
Disclaimer | Privacy Policy | Terms of Use |
All Rights Reserved.