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MAY 10, 2020
STOCKS – AMGN, AAPL, AMZN, FB, UBER, LLY, JD
MACRO- SPY
LONG-TERM MARKET TRENDS – CAUTION
MICHAEL KRAMER AND THE CLIENTS OF MOTT CAPITAL OWN AAPL
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Economic news will be less prominent this week, but we will see a big options expiration on Friday. The most significant open interest level on the board is at 3,000, and one has to think that level may act as a magnet for the market, pulling the S&P 500 higher this week towards that strike price.
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S&P 500 (SPY)
There is a path for the index to reach 3,000 this week with a gap to fill at that level. But first, the index needs to get over resistance at 2,960, which does seem possible given that the relative strength index is still 58.
Amazon (AMZN)
If the index is going to make that run higher, it is going to need Amazon to be one of those stocks to help push it there. The stock has been holding an uptrend for the past two weeks, with a healthy level of resistance around 2,440. There is a bearish divergence forming with the RSI, which suggests the stock is likely to drift lower longer-term. However, the stock may just have enough juice left to keep it moving higher for one more week.
Apple (AAPL)
Apple may still have a little upside left too, but it is running short on room. The big questions will be what happens to the stock after it fills the gap at $311. Meanwhile, the stocks RSI is approaching 70, and overbought levels.
Uber (UBER)
Uber is facing a severe level of resistance at $33, and after last week’s horrible results, I find it hard to believe that this one can continue to rise. I’m guessing it to comes back to $30.50.
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Facebook (FB)
Facebook has filled a gap too, and now its RSI is overbought with a reading of over 70. Not a good sign, as it means that stock is likely running out of steam, and reverse lower back to $191.
JD.com (JD)
JD.com is facing a bearish divergence on the RSI, and that means the stock may be topping out and on a path back to $42.80.
Eli Lilly (LLY)
Eli Lilly may be forming a head and shoulders pattern, and the stock needs to fall below $152 to confirm the potentially significant reversal lower. The RSI is already telling you the stock is losing momentum.
Amgen (AMGN)
Amgen is also facing the same pattern as Lilly, with a drop below $224, confirming the reversal pattern.
Have a great Sunday, and hope all you moms have a great Mother’s Day
-Mike
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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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