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October 4, 2020
STOCKS – AAPL, AMZN, FB, GOOGL, PYPL
Macro – SPY, QQQ
Mike’s Reading The Markets (RTM) Premium Content – NOW WITH A 2 WEEK FREE TRIAL
- 5 Themes For The Week Of October 5
- Bearish Pattern Persist, Lower Prices Likely -Midday
- RTM- The Next Leg Lower? – Video
- RTM: An Unknown Unknown Can Shift Sentiment Quickly – Morning
- Donor Data Shows Trump Leading By A Wide Margin In Swing State
- Copper And Oil Giving The Big Tell?
MICHAEL KRAMER AND THE CLIENTS OF MOTT CAPITAL OWN AAPL
Stocks were up last week but made little headway after Monday’s gap higher. Stimulus talk managed to keep things afloat, but then weakness began to re-enter the markets by Friday after the S&P 500 rejected Thursday’s break out attempt, moving back below the 50-day moving average.
S&P 500 (SPY)
But more importantly, a bearish pattern has formed across the S&P 500 and a number of the leading stocks in the market. The S&P 500 appears to have developed a bear flag/pennant. This negative continuation pattern, suggesting the index is likely to take a leg lower this week, with the critical level to watch for coming at 3,200. (Premium content – get the first 2 weeks free – 5 Themes For The Week Of October 5)
NASDAQ 100 (QQQ)
The Nasdaq 100 also formed a bearish rising wedge pattern last week, dropping out on Friday. It would suggest we see lower prices this week, heading towards $265.
Apple (AAPL)
Apple is just one of those stocks that seem to reflect that same bearish pattern. Meanwhile, a drop below support at $110.50 is likely to lead to a decline to $104.
Amazon (AMZN)
Amazon is exhibiting that same pattern, with a drop below resistance at $3,100, leading to a decline to around $2,870.
Facebook (FB)
The same pattern also exists on Facebook, with the potential for the shares to fall to around $241.
Alphabet (GOOGL)
The same pattern also exists in Alphabet, with the potential to fall to around $1,360.
PayPal (PYPL)
The same pattern is also present in PayPal with the chance to decline to around $171.
I guess you get the point. The same pattern is in a lot of places.
We should get a good sense of things on Sunday night once the futures open. Good Luck, everyone!
-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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