This column is my opinion and expresses my views. Those views can change at a moments notice when the market changes. I am not right all the time and I do not expect to be. I disclose all my positions clearly listed on the page, and I do not trade my account on the stocks spoken of in this column unless fully disclosed. If that does not work for you stop reading and close the page. Do not bother me or harass me.
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September 13, 2020
STOCKS – AAPL, AMZN, MSFT, AMD, TWLO, DOCU, SQ, NVDA
Macro – SPY, QQQ
- 9 Themes For The Week Of September 14
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- Live Webcast September 24 9PM ET
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MICHAEL KRAMER AND THE CLIENTS OF MOTT CAPITAL OWN AAPL AND MSFT
It will be a big week with the FOMC meeting on Wednesday, along with quadruple witching on Friday. It means volume levels are likely to be high, as will volality. (Premium Content – Get first two weeks for FREE – 9 Themes For The Week Of September 14)
S&P 500 (SPY)
The S&P 500 closed out the week at 3,340, right on support. The uptrend has been smashed, and momentum has shifted from higher to lower. I think this week, we see more losses with a potential decline to around 3,260.
NASDAQ 100 (QQQ)
The Qs also have broken their uptrend, and I think that the trend is bearish over the medium-term, with the potential for the ETF to drop even further with a $250 target over the next few weeks.
Apple is sitting on support at $108, and the RSI has swung from bullish to bearish momentum. Apple has a bunch of gaps that need to be filled from its post-earnings run, as the convexity squeeze has ended. I think it deflates further to around $96.50, working to fill the gap.
Amazon went out sitting on a support level at $3,100. I noted an article I wrote up for Forbes that I thought it was going to break to $2,800. It may not happen all this week, but that is where I think it goes over the next few weeks. (Free story – Amazon Nears A Technical Breakdown That May Send The Shares 15% Lower)
I also noted in this story for Forbes why I think Microsoft is heading lower, as it breaks its uptrend and heads towards $198 and then potentially $187. (Free story – Microsoft’s Stock May Fall Another 10%)
AMD broke support at $79, and the next level does not come to around $72, which would allow it to fill the gap.
Square is very close to breaking its uptrend, and I think it does. Once that trend line breaks, the stock should deflate, with the first stop at $118.
Twilio is very close to breaking its support level at $218, and is likely on its way lower towards $181, as momentum on the RSI continues to trend downward.
Docusign broke its uptrend and is now at support at $188, and is likely on its way lower towards $160.
Nvidia is very close to a big breakdown and should it fall below $460 that break down begins. I think the stock falls to $425, but on its way much lower.
Have a great Sunday!
Mott Capital Management, LLC is a registered investment adviser. Information presented is for educational purposes only and does not intend to make an offer or solicitation for the sale or purchase of any specific securities, investments, or investment strategies. Investments involve risk and, unless otherwise stated, are not guaranteed. Be sure to first consult with a qualified financial adviser and/or tax professional before implementing any strategy discussed herein. Upon request, the advisor will provide a list of all recommendations made during the past twelve months. Past performance is not indicative of future results.