MARKET M OVERS Thursday, August 6, 2020 Investing in stocks involves risks that may be exacerbated by market and/or price volatility. The stocks in this report have exhibited recent volatility and may continue to do so in the near-term, and thus may be riskier relative to the market as a whole. Please see disclaimer on page 2. A R G U S R E S E A R C H C O M P A N Y • 6 1 B R O A D W A Y • N E W Y O R K, N. Y. 1 0 0 0 6 Technical Assessment Intermediate-Term: Bullish Long-Term: Bullish The S&P 500 is finally breaking free from its eight - week bullish consolidation, and with Wednesday’s gains, filled the gap from February 24 that ran up to 3,328. The very last piece of resistance is from the February 19 all-time high (ATH) at 3,386. The Nasdaq and Nasdaq 100 have already moved to ATHs. The MDY is approaching its prior high from June 8 while the IWM surpassed its June 8 high. As we said in July, the advance/decline lines of the major indices either are near or at ATHs as breadth continues to lead price. The weekly McClellan Summation Index (a measure of breadth) has recovered from an extremely oversold level near -1200 to +1062. That is the first intermediate- to long-term buy signal since January 2019. It took four months in late 2008/2009 to go from -1600 to +800 and a little over a month from the late-December 2018 bottom. The current buy signal took about 2.5 months. The percent of "500" stocks above their 50-day average has dropped to 66% from an historic 98%. At the start of every run since 2009, this measure went to 90%+. Going back to '09, the percent above their 200-day average recovered over 45% and then 60% in two to three months. We are back up to 66% from a recent 34%. The new NYSE high/low AD line remains above its 50-day average on a buy signal, and is widening the distance from the 50-day. This reverses the early March sell signal. The weekly advance/decline of NYSE volume remains bullish over the 65- day exponential (EMA) average. Both the weekly 16/39 and 17/43 EMA crossover systems remain bullish following their March bear crosses. (Mark Arbeter, CMT) S trengthening Sectors: Technology, Consumer Discretionary Weakening Sectors: Real Estate, Utilities Recent Picks: TECH, AAL, ERIC, EA, JBLU, CENT, NDAQ, NLOK, PCAR, JPM, KBH, GOLD, PTON, THO, LEN, DAL, CMI, AMD, PANW, FDX, APD, PGR, DHI, CARR, CRL, HA, JPM, UNH, LULU, BABA, PYPL, NVDA, TECH, LLY, CMG INDEX PRICE SUPP RESIS NASD 10998 8600 11000 NYSE 12732 11500 13600 S&P 500 3328 2960 3386 Company Ticker Price Support Resistance Tesla TSLA 1485.02 1370 NM Tesla makes and sells electric vehicles, and energy generation and storage systems. First-quarter revenue increased 32% to $5.985 billion. Auto division revenue improved 38% to $5.132 billion. Services and Other revenue rose to $560 million from $493 million, reflecting higher sales of used Tesla vehicles. Tesla completed a bullish cup-with-handle (C&H) formation on June 30 on a nice pickup in volume. Based on the completed C&H, the shares could see a measured move well above the $1,500 level. Following the breakout, the shares ran up to almost $1,800 on July 13. Since then, it appears the stock is tracing out a bull flag, finding support from the 21-day exponential moving average. According to Investors.com, TSLA has high Composite, Timeliness, Relative Strength (RS), Group RS, and Accumulation ratings. Chart support comes in at $1370 and we would put a stop-loss right below there. We would take profits in the $1800 area. +++++++++++++++++++++++++++++++++++++++++++++++++++++++++++++++++++++++++++++++++++++++++++++++++++++++++++++++ Boeing BA 174.28 153 234 Boeing manufactures commercial jetliners and military aircraft as well as rotorcraft, electronic and defense systems, missiles, satellites, launch vehicles, and advanced information and communication systems. BA is a technical turnaround play after a massive decline to $89 in March from $446 in March 2019. The stock broke out of a bullish ABC formation in early June. The shares ran all the way to $234 in just four days on a huge pickup in volume. Since then, the stock has traced out a bullish wedge back to weekly chart support. The positive thing about the chart is that there is little resistance of any kind and, therefore, a lot of room to run. The first is from the June high at $234, and then the declining 200-day at $241. Above there, the first real overhead supply is $300+. According to Investors.com, BA has a high Accumulation rating. We would put a stop-loss just under chart support at $153. We would take profits in the $200 area, with the potential for larger gains in 2020. +++++++++++++++++++++++++++++++++++++++++++++++++++++++++++++++++++++++++++++++++++++++++++++++++++++++++++++++ Argus Research Co. 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