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JANUARY 26, 2020
STOCKS: AAPL, MSFT, TSLA, AMD, AMZN, FB
MACRO: SPY
MICHAEL KRAMER AND THE CLIENTS OF MOTT CAPITAL OWN AAPL, MSFT, TSLA
I will be providing updates to these stocks and more in my premium areas on Seeking Alpha Marketplace and StockTwits, throughout the week as well as an option activity I am seeing.
It will be an incredibly busy week with tons of economic data and earnings. It will be, to some extent, a defining week for the market, with many of the biggest companies reporting results.
S&P 500 (SPY)
The good news for the S&P 500 is that the index found some support around 3,282, but it may find it hard to get back above 3,300. If the index fails to rise above 3,300 on Monday, it seems likely we are heading lower to 3,255, and then 3,240.
Apple (AAPL)
Apple will report results on Tuesday, and this company will have a ton of pressure on it to deliver a beat and raise quarter. I own the stock, but I think it might be hard to live up to that pressure. The shares are overbought based on the RSI. Additionally, the RSI is starting to diverge from the rising stock price. There is also a rising wedge pattern forming in the chart, and it suggests to me the stock falls after results, with support first at $310, then $300, and $290.
AMD (AMD)
AMD will report results on Tuesday, too; I still think this stock will rise to around $59-$60.
Microsoft (MSFT)
Microsoft will report results on Wednesday, and I saw some bullish option betting in this stock a couple of weeks ago, which suggests the stock keeps rising after results. The chart shows the shares are on pace to increase to around $179. Free story- Microsoft’s Stock May Jump As Much As 9% Following Its Quarterly Results
Facebook (FB)
Facebook will also report on Wednesday, and again I have recently seen some bullish option betting in this one too, and based on the chart, I think we can see the stock head towards $237. Free story- Strong Quarterly Results May Push Facebook’s Stock Even Higher
Tesla (TSLA)
There is probably no company that has higher expectations on it than Tesla, and honestly, anything can happen here. The risk here is higher towards a disappointment, because who knows what the right expectations are for this company given the massive move higher. I think the stock could fall back to the uptrend line, pulling the stock down to around $500.
Amazon (AMZN)
Amazon will report on Thursday, and I can’t remember the last time the stock has been this boring for this long. I think that is ending. It appears a cup and handle pattern is forming, and it would suggest the stock rises following results. The relative strength index is also pointing higher, and it indicates to me the stock moves up to $1970.
Good Luck!
-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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