MARKET M OVERS Friday, August 7, 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 Gold futures hit another all - time high of $2,082/oz. on Thursday and silver soared to $29/oz. (the highest since 2013). What’s behind these parabolic moves and is there anything that can stop this metals freight train? Well, it has been the perfect storm for metals from an intermarket perspective. Since February, the whole yield has crashed, benefiting the metals because there is a cost to carry or hold them. In addition, lower rates provide less competition for other assets. Also, after spiking to $103.96 on March 23 (the stock market bottom) in a flight to safety, the U.S. Dollar Index (USD) has come tumbling down to a recent low of $92.52. A lower currency is also very “metals friendly” as owning gold and silver is a way to protect assets from a weakened state of buying power versus other currencies. A lower dollar is inflationary as goods from other countries become more expensive to buy. Whether it’s the two-year, the five-year, or the 10-year Treasury, yields appear to be tracing out a bullish wedge since June. Of note, the 10-year yield is closing in on the March low of 0.5%. If yields break out of the wedge formation, we could see a decent move higher for yields, which could halt the metals. The USD has stopped falling in recent days and has put in a minor bullish momentum divergence on the daily chart. Any reversal higher in the greenback could take at least some of the air out of the quite extended metals market. Interestingly, commercial hedgers (smart money) are bullish toward the dollar while large speculators are bearish. (Mark Arbeter, CMT) S trengthening Sectors: Technology, Consumer Discretionary Weakening Sectors: Real Estate, Utilities Recent Picks: TSLA, BA, 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 INDEX PRICE SUPP RESIS NASD 11108 8600 11800 NYSE 12729 11500 13600 S&P 500 3349 3000 3386 Company Ticker Price Support Resistance Chipotle Mexican Grill CMG 1186.80 1085 NM Chipotle Mexican Grill operates more than 2,000 restaurants that offer quick service, maintain traditional cooking methods and utilize high-quality ingredients. It has a tightly focused menu, but store design and decor vary. The company has been expanding rapidly as interest in Southwestern food has spread. CMG broke out to all-time highs (ATHs) on May 15 and then continued higher, peaking at $1,086 on May 26. The stock consolidated, tracing out a bull flag and bullishly, finding support from the 10- and 21-day exponential moving averages. On July 6, CMG broke out to ATHs once again on a nice pickup in volume. Based on the size of the bullish base and “V” bottom, CMG could see a measured move to the $1,300+ region. According to Investors.com, CMG has high Relative Strength (RS), Group RS, and Accumulation ratings. We would put a stop-loss just under chart support and the 50-day moving average at $1085. We would take profits in the $1,300 area. +++++++++++++++++++++++++++++++++++++++++++++++++++++++++++++++++++++++++++++++++++++++++++++++++++++++++++++++ Twitter TWTR 37.69 34.50 39 Twitter calls itself ‘a platform for public self-expression and conversation in real time.’ It remains true to its initial format, with tweets limited to 140 characters of text, but is experimenting with longer-format tweets. Any user can create a tweet, and any user can follow other users with no restrictions. TWTR traced out a large bullish “V” bottom between late February and early June. Since then, the stock has put in another smaller “V” with a handle or bull flag. If the stock can clear the $39 region in convincing fashion, these bullish formations will be complete, opening the door for a possible move to at least the $50 level. There is some chart resistance in the $45 to $48 zone from the prior highs in June 2018 and September 2019. According to Investors.com, TWTR has high Accumulation/Distribution and Group Relative Strength ratings. We would put a stop-loss just under chart and moving-average support at $34.50. We would take profits in the $45 area. +++++++++++++++++++++++++++++++++++++++++++++++++++++++++++++++++++++++++++++++++++++++++++++++++++++++++++++++ Argus Research Co. (ARC) is an independent investment research provider whose parent company, Argus Investors’ Counsel, Inc. (AIC), is registered with the U.S. Securities and Exchange Commission. Argus Investors’ Counsel is a subsidiary of The Argus Research Group, Inc. Neither The Argus Research Group nor any affiliate is a member of the FINRA or the SIPC. Argus Research is not a registered broker dealer and does not have investment banking operations. The Argus trademark, service mark and logo are the intellectual property of The Argus Research Group, Inc. 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