May 8, 2019

Michael Kramer and the clients of Mott Capital own Apple and NXP

US Markets

• S&P Futures -11.5
• 10-Year Treasury Yield 2.42%
• Dollar Index 97.50
• VIX 21.34
• Oil 61.29

International Markets

• Japan Nikkei -1.46%
• China Shanghai -1.12%
• Hong Kong HSI -1.23%
• South Korea KOSPI -0.41%
• Germany DAX +0.08%
• UK FTSE -0.25%

International Trading

Global markets continue to be weak, and at this point, they are all fighting to find support levels. So we will need to continue to monitor these scenarios.

US Trading

S&P 500 (SPY)

The S&P 500 is pointing to a lower opening on May 8, but we are giving back what we made up in the final 30 minutes of trading on Tuesday.  The best case scenario I am looking for is a drop in the S&P 500 to 2863 this morning, setting up a retest of the lows from yesterday, followed by a bounce higher. If we fail to find support at 2,863, then one might assume the decline continues to the next big support region at 2,830.

If we do see the S&P 500 bounce at 2,863, then I think you should at least keep this next chart in the back of your mind as it would be consistent with what we have seen in recent months.

VIX

The VIX is also retesting the intraday highs from yesterday. A decline below 20.50 would be a big positive for the broader market to bounce.

Apple (AAPL)

Apple may continue to feel the pressure today, but the good news is that there is a healthy level of support at $198, and it would be a good region for the stock to bounce. A decline below $198 sets up a further drop to around $194.

Amazon (AMZN)

Amazon has held firm at $1,900, but should the stock drop below the uptrend at that price; it sets up a further decline to around $1,850.

Nvidia (NVDA)

Nvidia is on the cusp of a big break down should it drop below $170. It could set up a decline to around $150.

NXP (NXPI)

It would be nice to think that NXP is merely just filling a gap from its earnings beat back to $98.

Micron (MU)

Micron is now breaking down, and a drop below $39 sends the stock even lower to perhaps $36.

Square (SQ)

Square doesn’t look healthy either and may be setting up a retest of $65.50.

Boeing (BA)

Boeing continues to look weak and could be heading towards $320.  Premium Article Boeing Is Breaking Down

Here’s to a better Wednesday.

-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.  may 8