May 3, 2019
Michael Kramer owns IWM Calls
Michael Kramer and clients of Mott Capital own Microsoft, Netflix, Skyworks
- S&P 500 futures +7.75
- 10-Year Treasury 2.56%
- VIX 13.98
- Dollar Index 97.97
- Oil $61.85
- China Shanghai +0.52%
- Hong Kong HSI +0.46
- South Korea KOSPI -0.74%
- Japan Nikkei -0.22%
- Germany DAX +0.28%
- UK FTSE +0.74%
- US Job Report – Consensus +180K
- Unemployment Rate – Estimates 3.8%
- Berkshire Hathaway has been buying Amazon
S&P 500 (SPY)
The S&P 500 is pointing to a higher opening with the futures rising ahead of the jobs report. Not that the job report is irrelevant, but it would seem that the Fed made it rather clear on Wednesday, that their main focus is inflation. So unless this is a scorching number, meaning well ahead of expectations, or an icy number, meaning way below estimates, the result likely don’t matter.
The S&P 500 managed to bounce off of psychological support yesterday around 2,900. With the S&P 500 futures pushing the index above 2,915 in the pre-market, it makes the next level of resistance at 2,940.
The Russell put together an excellent day yesterday, rising 40 basis point, diverging from the large caps. But the index is in the middle of what appears to be a bit of a minor short-term downtrend. The index still needs to get over that barrier at 1592. The RSI is pointing to something happening, very soon.
News that Berkshire Hathaway has been buying the shares of Amazon is sending Amazon’s stock higher this morning. The next level of resistance comes at 2,025.
Qualcomm managed to hold support at $82 following results, and now is knocking on the door of a big break out at $88. Should the stock break out it could rise to around $100.
Square fell pretty hard following its results and managed to stop falling around $66, getting pretty close that $65 level I had mentioned. There may still be some further downside risk based on that RSI, so let’s see if $65 can hold again today.
Alibaba is continuing to look strong and could continue to rise to around $201.50.
Skyworks is trading lower after it reported results, but I’m not sure why? The results were excellent, and guidance was in-line. We have seen semi-stock rise following worse results. The conference call, which I listened to about half of, I thought was very good, very upbeat, and very positive. I could feel a sense of excitement. You can listen to it for yourself if you’d like.
I don’t think the stock will stay down for long. You can see there is a significant uptrend in the stock and I don’t think that changes.
Microsoft filled the gap yesterday, and now we will wait to see if resumes it uptrend and pushes to $140.
Netflix has acted exceptionally well in a weak tape the past two days. It gives me the sense that it is a stock that wants to go higher.
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