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April 19, 2021
STOCKS – NVDA, SQ, MU, IBM
MACRO – SPY
Mike’s Reading The Markets (RTM) Premium Content – FREE 2-WEEK TRIAL
- Netflix Earnings Preview- Need To Know Guide
- Midday – Bitcoin Could Hold The Key To Where Stocks Go
- Morning Note: Gamma Levels Drop, Will Stocks Drop With.
- Peak Earnings Growth May Mean Peak Multiple Expansion – T.W.A
- Midday- The End To An Unusual Two Weeks
- Morning Note – Opex Is Here
- Midday: Stocks Rise, But Nothing Has Changed Yet
- Morning Note – Strong Economic Data
- Midday – Stocks Pullback Heading Into OPEX
- Morning Note- All Signs Point To A Post Opex Hangover
Stocks fell some today; certainly nothing too dramatic. The S&P 500 finished the day lower by around 60 bps, while the Qs dropped by about 1%. The level of resistance on the S&P 500 around 4,185 managed to hold today. It was never even tested, with the index gapping lower to start the day. It leaves an open gap that needs to be filled. Ideally, this gap gets filled tomorrow. This would tell us a lot about which direction the market is going to move from here. If it doesn’t get filled, it doesn’t mean much at this point.
NASDAQ Comp.
The NASDAQ Composite did fill one gap today and found some decent support at 13,860. There is also a gap to fill at 14,050 too. There are plenty of gaps to fill at lower levels as well. At this point, there is a lower high on the RSI that was created today, which could be a significant signal. Again, tomorrow should give us a lot more insight into what happens next.
Volatility
The VVIX volatility index also continues to push higher.
Nvidia (NVDA)
Nvidia was down sharply today after the UK raised a national security concern to the company’s proposed acquisition of ARM. I figured at some point; this would come up. I wasn’t sure it would be the UK; I was thinking maybe China. But we will have to wait and see what the remedy is, as it throws the good news from last week into the back seat. I still think the stock heads lower back to $450.
Square (SQ)
Square fell hard today after Bitcoin’s big decline over the weekend. The 50-day moving average appears to be very important at the moment, and if it breaks, there will likely be a retest of support at $200.
Micron (MU)
Micron continues to meltdown. It, too, is testing support at the 50-day moving average. For now, if it holds and must continue to hold to avoid a further drop back to $85.50.
IBM (IBM)
IBM was moving up after hours following quarterly results that were better than expected. The big question is if the stock can hold the breakout at $136; if so, there is a good chance the stock climb back to $150.
See you tomorrow.
Mike
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.
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This report contains independent commentary to be used for informational and educational purposes only. Michael Kramer is a member and investment adviser representative with Mott Capital Management. Mr. Kramer is not affiliated with this company and does not serve on the board of any related company that issued this stock. All opinions and analyses presented by Michael Kramer in this analysis or market report are solely Michael Kramer’s views. Readers should not treat any opinion, viewpoint, or prediction expressed by Michael Kramer as a specific solicitation or recommendation to buy or sell a particular security or follow a particular strategy. Michael Kramer’s analyses are based upon information and independent research that he considers reliable, but neither Michael Kramer nor Mott Capital Management guarantees its completeness or accuracy, and it should not be relied upon as such. Michael Kramer is not under any obligation to update or correct any information presented in his analyses. Mr. Kramer’s statements, guidance, and opinions are subject to change without notice. Past performance is not indicative of future results. Neither Michael Kramer nor Mott Capital Management guarantees any specific outcome or profit. You should be aware of the real risk of loss in following any strategy or investment commentary presented in this analysis. Strategies or investments discussed may fluctuate in price or value. Investments or strategies mentioned in this analysis may not be suitable for you. This material does not consider your particular investment objectives, financial situation, or needs and is not intended as a recommendation appropriate for you. You must make an independent decision regarding investments or strategies in this analysis. Upon request, the advisor will provide a list of all recommendations made during the past twelve months. Before acting on information in this analysis, you should consider whether it is suitable for your circumstances and strongly consider seeking advice from your own financial or investment adviser to determine the suitability of any investment.
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