July 26 – Stock mentions: SPY, AMZN, GOOGL, AAPL, NFLX, SNAP
Michael Kramer and the clients of Mott Capital own GOOGL, AAPL, NFLX
- S&P 500 futures +10 points
- 10-Year yields +2.07%
- Dollar Index 97.91
- Oil $56.34
- VIX 12.45
- UK FTSE +0.48%
- Germany DAX +0.39%
- Japan Nikkei -0.45%
- China Shanghai +0.24%
- Hong Kong HSI -0.69%
- South Korea Kospi -0.40%
Markets on the Rebound
Markets are still trying to figure out the implication of the ECB meeting, and it seems that Draghi’s dovish commentary is at the very least starting to have some mild effect, with German stock’s recovering some of yesterday losses, and yields heading lower. The euro is strengthening mildly too, on July 26.
It is fascinating to see that the dollar index is approaching its highs again despite the market, knowing a rate cut is coming. It seems to be a clear indication to me that the Fed will not only need to cut but signal a decrease in September is coming to get the dollar to maybe reverse. But it will not be easy, because the market already knows this, but still, the dollar is stronger. It just tells us that the market expects the ECB to be more aggressive than the Fed.
S&P 500 (SPY)
The S&P 500 is rising on July 26 and based on the futures is looking to test resistance at 3,013. But much of this can change once the GDP print comes this morning.
Amazon is paring some of its losses and is trading down about 1.3%, nothing earth-shattering and nothing that seems very direr. I have never owned AMZN, nor have I every shorted. I have no interest in the stock. Anyway, maybe, I’ll be proven wrong, but I still think the stock is heading lower towards $1,850. Whatever, like it or hate my call, everyone has the right to an opinion. Guess what– if I’m wrong, I’m wrong, the great thing is I will tell you. I have never been afraid to admit I’m wrong. Let the market decide. Why Amazon May Drop
Alphabet is rising above $1,235. The stock is working to fill the gap, and I think it rises above the previous in time.
Netflix made some significant strides yesterday and will now challenge resistance at $329. Remember that $329 was a strict level of resistance the day after earnings, so if the stock can get above that price, I think it has further to climb. I think $341 is possible. But I have been proven to be too optimistic on Netflix in the past. Remember I had thought the stock would go to $405, after earnings, which it didn’t.
Apple is nearing a big break out which could send the stock to $217, testing resistance at $209.
Snap’s next level of resistance comes at $18.50.
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