EB Daily Market Report - Tuesday, September 15, 2020

This will be a VERY abbreviated DMR today (and possibly tomorrow as well) as I await the birth of my first grandchild. Many of you have worked with my daughter, Erin Webber, and she and her husband are at the hospital today. The doctor is saying the birth will take place today or tomorrow, so I'm on high alert and really not paying close attention to the stock market - for good reason. :-)

Because of this development, we are canceling today's Max Pain event originally scheduled for 4:30pm ET. Over the next 24-48 hours, I will try to record a quick session with key max pain data for everyone.

The S&P 500 is up nicely today, but is dealing with its 20 day EMA, currently at 3403, and gap resistance at 3426. At last check, we were squarely in the middle at 3414. One positive development has been the strengthening of the IWF:IWD ratio (growth vs. value). But I'd still like to see this ratio (1.792 at last check) clear the September 4th and September 10th highs at roughly 1.814. I'd remain somewhat skeptical of this rally until that occurs.

There's a potential short squeeze candidate in Red Robin Gourmet Burger (RRGB) as volume is surging as it breaks above the early-September high. Gamestop (GME) is trading bullishly again since reporting earnings last week. The truly big level there would be a close above 8. Workhorse Group (WKHS) was featured recently as a short squeeze candidate and is no doubt putting emotional pressure on shorts as it broke to yet another high yesterday on increasing volume.

The Short Squeeze ChartList (SSCL) will be updated this week as new data is released.

Have a great day and I'll be back tomorrow!

Happy trading,

Tom