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July 14, 2021
STOCKS – AMZN, AAPL, GOOGL, MSFT, NVDA
MACRO – QQQ, SPY, ARKK, RSP
Mike’s Reading The Markets (RTM) Premium Content – FREE 2-WEEK TRIAL
- RTM Video- The Stock Market May Be Ready For A Big Sell-Off
- RTM Morning – Markets Still Overbought Heading Into OPEX On Friday
- RTM Video – Breaking Down The Earnings Trends Of The 8 Biggest S&P 500 Components
- RTM Morning: Inflation Runs Hotter On The Surface
- RTM Educational Content – Closing Imbalances
- RTM Video – 2Q Results Will Be Crucial For The Stock Market
- Apple And Amazon Caught In A Gamma Squeeze?
- RTM Tactical Update: The Technology Sector Will Not Be Immune To Slowing Growth
MICHAEL KRAMER AND THE CLIENTS OF MOTT CAPITAL OWN AAPL, MSFT, GOOGL
This will be the last blog for the next week to two weeks. I have my surgery on Friday to repair my herniated disc, and then I will be out of commission for several days. Thank you for all the support and kindness; it is appreciated, as is your loyalty to me over the past few years.
As I was writing today’s blog, I thought I had a deja-vu for a moment. It turns out it wasn’t deja-vu because it actually happened. The Day was January 29, 2018. The story; 4 STOCKS THAT ARE SIGNALING THE STOCK MARKET IS READY TO FALL. In that story, I noted how the RSIs of AMZN, MSFT, and GOOGL all had very overbought RSIs. Apple was in the mix for other reasons. Of course, things got really ugly after that through February 8.
The same thing is emerging today, with the biggest stocks all reaching very overbought reading. On the surface, stocks did a bunch of nothing today, rising by around 10 bps. It really wasn’t a great day, and if not for Apple, the index probably would have been down. The S&P 500 EW (RSP) was actually down about 15 bps today, so that’s evidence enough.
But remember what I wrote above.
NASDAQ 100 (QQQ)
The NASDAQ 100 (QQQ) managed to finish the day with an RSI of 75.5, a pretty high reading, well not pretty high, very high. I will mention this again, in case you have not seen it from me enough. When the QQQ RSI gets this high, the outcomes are not good most of the time, including January 2018.
Apple (AAPL)
Apple is no different, with an RSI, back over 80. This is not a sustainable level.
Microsoft (MSFT)
Microsoft is no different, with an RSI currently at 76.1, coupled with the completion of its 5 waves up.
Alphabet (GOOGL)
As it is for Alphabet with RSI of 73 and rising wedge pattern.
Amazon (AMZN)
As is Amazon, with its now lower reading of 70 on the RSI.
Nvidia (NVDA)
Nvidia may be leading the charge, as it was one of the first stocks to break higher. Now it is one of the first stocks to break down. The stock’s RSI, after hitting 83, has now broken an uptrend which started on May 19 with an RSI that is clearly trending lower. Could the shares fall back to $650 very easily, based on technical and fundamentals.
ARKK (ARKK)
Finally, who can forget the ARKK (ETF). Its RSI reached 76 while failing miserably at resistance around $131.
Anyway, I will leave you with that. I will be back as soon as I can.
-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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