September 13, 2020
STOCKS – AAPL, AMZN, MSFT, AMD, TWLO, DOCU, SQ, NVDA
Macro – SPY, QQQ
- 9 Themes For The Week Of September 14
- Sell-Off Has Much Further To Go
- SELL-OFF INTENSIFIES – MIDDAY
- The Rally May Fade Fast – Morning
- Trump Is Leading By A Wider Margin Than The Polls Suggest
- Live Webcast September 24 9PM ET
- My Portfolio Breakdown -Entry Spots
- When Adjusting For Growth The S&P 500 Is It Most Expensive In 40 Years
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!
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