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October 18, 2020
STOCKS – AMD, T, TSLA, INTC, NFLX
Macro – SPY, QQQ, XLU
Mike’s Reading The Markets (RTM) Premium Content – NOW WITH A 2 WEEK FREE TRIAL
Macro Headlines:
- Themes For The Week Of October 19
- Sector Rotation Turning Defensive
- Biden’s Lead Is Narrowing Over Trump
- Globally Markets Giving Warnings Signs
-
Technology Options Trader Returns- Morning
Stock Specific:
- Exxon’s Stock May Be Heading For A Reversal Of Trend
- Micron’s Shares May Jump 9%
- PayPal May Surge With The Market, But Not Without Risk
- Intel’s Stock Is Breaking Out
MICHAEL KRAMER AND THE CLIENTS OF MOTT CAPITAL OWN TSLA
S&P 500 (SPY)
Stocks will try to advance after stalling out this past week. The momentum is still behind the rally for at least a little bit longer. The RSI is still pushing higher, and a steady trendline holding up as support. Additionally, it would appear we are the fifth wave of a 5 wave count higher. So I continue to think we are heading higher from here to around 3,600.
NASDAQ 100 (QQQ)
Meanwhile, we can make a similar statement about the Q’s and its potential to power higher towards $305. The RSI on the hourly should be ignored, as I believe the RSI is never a good indicator of intraday timeframes.
Utilities (XLU)
But interestingly there may be a defense tone beneath the surface, and we will need to closely watch the XLU, as it appears to be breaking free of a flag pattern and potential heading higher towards $69. The RSI has broken free of a downtrend, and that suggests higher prices are on the way.
Intel (INTC)
I think Intel will continue to rise this week. The stock appears to have finally turned the corner. The RSI is steadily rising and is still below overbought levels. I think it climbs to around $56. (Premium content from 10/12 -Intel’s Stock Is Breaking Out)
AMD (AMD)
AMD has been holding on to its 50-day moving average over the past few days. But the pattern is still bearish, with an RSI trending lower, which is still not indicating oversold conditions. Again, I think this likely heading lower towards $72.
Tesla (TSLA)
Meanwhile, Tesla will report results this week, and has moving nicely higher along and uptrend. The RSI is trending higher, and it suggests that the stock continues heads to around $476.
Netflix (NFLX)
Momentum in Netflix has really shifted, from higher to lower, with an RSI trending to lower prices. I think the company disappoints this week and the stock heads back to $495.
AT&T (T)
Maybe AT&T has finally hit bottom, with an RSI turn potentially forming. If the stock can hold on to $27.30, it can start to recover towards $28.90.
-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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