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S&P 3,000

Stocks pushed into record territory yesterday after Fed Chair Jerome Powell said there’s plenty of economic uncertainty that could push the central bank into action, including the simmering U.S.- China trade war and the always-nebulous concern that global growth is slowing.

“Last Friday’s strong jobs report raised concerns about a July rate cut later this month, which boosted interest rates and caused some profit-taking in stocks,” John Murphy notes on his Stockcharts.com blog. “Mr. Powell today put the July rate cut back on the table. Traders are now placing the odds for a July cut of 25 basis point at 80% (with only a 20% chance of a 50 basis point cut).”

As we’ve discussed, Wall Street (and Trump, for that matter) is demanding a rate cut — and investors are prepared to throw an epic temper tantrum if the Fed doesn’t follow through. That’s why futures immediately flipped into the green yesterday morning when Powell’s testimony hit the wire.

The Dow, Nasdaq, and S&P 500 all hit new all-time highs during Wednesday’s session, with the S&P crossing 3,000 for the first time ever.

SPX

Of course, a nice round number like 3,000 posted by the S&P doesn’t really mean much —and it’s certainly not a magical level we had to sneak above in order for this bull run to continue.

But investors do tend to anchor to these round-number milestones. In fact, I’m surprised Trump hasn’t tweeted about it yet. Maybe he’s waiting for the magical close above 3K before officially claiming victory…

As tech stocks lead the market higher, is Netflix Inc. (NASDAQ:NFLX) about to run into some serious trouble?

Just when you though cable companies and old media were finished, they’re launching a handful of new streaming service like everyone else on the planet. Now, the cable networks are exacting their revenge on Netflix.

Netflix recently announced that NBC bought back the rights to popular sitcom The Office and will soon host the show on its own streaming platform.

As if that wasn’t a big enough blow, WarnerMedia/AT&T is also reclaiming Friends, which will soon find its new streaming home on HBO Max, reports CNBC.

Chandler, Phoebe, and the other Friends will leave Netflix next year. The Office will depart in early 2021.Unfortunately for Netflix, The Office and Friends are the platform’s biggest shows. Those two programs alone account for a hefty portion of Netflix’s popularity.

Even with this major blow to Netflix’s streaming supply, investors don’t appear too concerned. While the stock has yet to post new 2019 highs this month, it continues to look constructive.

NFLX

A close above $386 could ignite a fresh breakout to new all-time highs. Remember, I always like to see stocks rally on negative news. If Netflix can make a stand here and push toward a breakout, it could provide a great trading opportunity.

There’s another company poised to benefit from an influx of new streaming services.

Your new Roku Inc. (NASDAQ:ROKU) trade will be one of the biggest beneficiaries of all these streaming services popping up everywhere.

Remember, Roku is discontinuing plug-in hardware and pivoting to ad revenue in addition to smart-TV operating systems. It is quickly becoming the preferred platform to help users “bundle” all their streaming services.

Investors seem to be catching on to its potential:

ROKU

ROKU is having a flawless July as the stock continues to march toward its all-time highs. I love it when a trade delivers right out of the gate.

Sincerely,

Greg Guenthner

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Greg Guenthner

Greg Guenthner, CMT, is the editor of Rude Awakening PRO and Seven Figure Signals. He has been with Agora Financial/Seven Figure Publishing for 13 years. In 2018, Greg’s Rude Awakening PRO portfolio beat the S&P 500 by 14%.

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