Stocks continue to show resilience regardless of how volatile things seem like they should be. The S&P is up by almost 1.8% as of 1:30 pm EST - and is within about 50 points of its previous highs from February. We're 36 days out from a presidential election, with the first debate taking place tomorrow night. There will be a supreme court nomination in the 5 weeks we have until November 3rd, so there is a lot that will be on the daily news cycle - and this is all with earnings season picking up again in the next couple of weeks.

The S&P has bounced exactly a .382 retracement from its recent pull back, this is a critical level to see if it can trade higher with strength or fail.

Stocks I'm looking at with earnings this week:

Micron (MU) - earnings Tuesday after the close.
Bed Bath & Beyond (BBBY) - earnings Thursday before the open.
Pepsi (PEP) - earnings Thursday before the open.
Conagra (CAG) - earnings Thursday before the open.
Constellation Brands (STZ) - earnings Thursday after the close.

We're starting this letter off with the VIX - which is higher this morning from Friday's close, and that's with the S&P opening up about 1.5% in the positive. Pay attention to a market that is telling you that it needs more premiums for S&P insurance when it is rising by 1.5% over the weekend. That is not a mark of strength. It might be strength in price, but people are also demanding higher prices for insurance showing some cracks in the move.

The VIX might just have a floor at or near this price level until shortly after the election, assuming we have a clear winner.

Uber Technologies Inc. was awarded an 18-month London license after a judge ruled that the ride-hailing app is “fit and proper” to operate.

“Despite their historical failings, I find them, now, to be a fit and proper person” to hold a London license, Deputy Chief Magistrate Tan Ikram said in his ruling on Monday.

Uber is trading higher this morning on this news. Uber will face a headwind until life resumes to some semblance of pre-covid life, yet they have accelerated their growth in food delivery and will be well positioned when social life picks back up and people start feeling safe to travel again in the next 6-18 months.

The next stop for Uber is a re-test of its recent high of $38.52 from Sept 16th and $38.78 from June 5th. Then $41.86, it's February high.

Disney has bounced back within its uptrend channel as of the open this morning. Disney traded lower last week with the market, and the news that it had to delay the openings yet again of some of its film releases.

STZ has popped nicely on the open and is well within its high volume bar from July 1st. We will look for it to trade higher this week and establish a bid to get it back within its short and longer term uptrend channels.

STZ reports earnings before the bell on Thursday.

Options Trades:
None

Short Term portfolio:
We bought CGC at $16.90 and got stopped out last week at $15.24 for $1.66 or a 9.82% loss. CGC is trading at $14.18.

Long Term portfolio:
Long half a position in DIS at $118.63. Disney is trading at $126.53. Stop is $98.45.
Long half position in UBER at $31.50 or better. Uber is trading at $36.04. Stop is $26.24.
Long half position in STZ at $180.50. STZ is trading at $185.21. Stop is $164.05.

Timer Digest Signals: S&P: Bearish Gold: Bullish Bonds: Bullish