Big Earnings Tuesday in Two Different Megatrends

May 4, 2020

Mish's Daily

By Mish Schneider


blankIn the weakening transportation sector, partly because of Buffett’s weekend comments, there is one area that is doing a lot better.

Want to fly coast to coast?

Not so much.

Want to go to outer space?

Sign me up!

Virgin Galactic (SPCE) reports May 5th.

The stock is outperforming the overall indices clearly well outperforming airline stocks as evidenced through the ETF JETS, down over 6% today.

And while you are traveling, you may want to survive by eating a plant-based diet.

Beyond Meat (BYND) also reports May 5th.

Both BYND and SPCE are two stocks that have our attention.

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SPCE is in a strong caution phase.

Resistance is at 20.00 with support at the 200 DMA or 13.60. In between, has been a bit of a chop fest.

A good report or a move over 20.00 would clear the last 2 months of work.

BYND is in a weak recuperation phase. The price action has seen this trade between the two moving averages.

A move over the 200-DMA is a strong sign, whereas a move under 80 would be weak.

We will be watching for strength.

However, should earnings disappoint, a move closer to the underlying MAs could also turn out a low risk buy opportunity.

Regardless, both are top choices for swing trades. The rest is up to the reaction to earnings, and how the charts line up regarding risk/reward.


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S&P 500 (SPY) 280 held. 282 resistance

Russell 2000 (IWM) Held the 50-DMA so waiting for momentum to shift higher

Dow (DIA) Held the 50-DMA and needs to clear back over 240 for a buy

Nasdaq (QQQ) 209.50 support 216-217 resistance

KRE (Regional Banks) Key as it failed the 50-DMA (but held 35.50 the 10-DMA

SMH (Semiconductors) 131 resistance

IYT (Transportation) 143.64 has to clear. 140 support.

IBB (Biotechnology) Resistance 125

XRT (Retail) 35.00 support 36.70 resistance

Volatility Index (VXX) 40.00 pivotal

Junk Bonds (JNK) confirmed bearish phase support 95.50

LQD (iShs iBoxx High yield Bonds) 127.20 support

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