Subscribe to receive this FREE daily commentary directly in your email
October 25, 2020
Stocks – AAPL, MSFT, AMZN, FB, SHOP, AMD
Macro – SPY, SMH
MICHAEL KRAMER AND THE CLIENTS OF MOTT CAPITAL OWN MSFT AND APPL
It will be a busy week driven by politics, stimulus hopes, and economic data. It is becoming clear that market enthusiasm for a pre-election rally is holding, but it will need more positive headlines around stimulus to push higher.
S&P 500 (SPY)
The chart still appears to be favorable to stocks rising based on the pattern present. It would suggest that we see higher prices from here, with a run-up to around 3,600.
Semis (SMH)
The setup for the SMH ETF appears to be bearish, and I think this one is heading lower. Add to that a massive put position in the ETF that was created last week, and I think we will see $174 in the weeks ahead. (premium content – Betting Semis Drop)
Apple (AAPL)
Apple will report results this week. The stock filled a gap around $115, and now I think that falling wedge is telling us that the stock rallies back to $125.
Microsoft (MSFT)
Microsoft will report on Tuesday night, and the stock has been holding a short-term uptrend nicely. I think this one will head higher and work to fill the gap up around $231.
AMD (AMD)
AMD will also report results on Tuesday. I know many people think that Intel’s pain is AMD’s gain, but perhaps there is just a slowdown across the space that is now taking place. It’s certainly possible. We won’t find out until AMD reports. I can tell you the stock surely doesn’t act well. I think it continues lower towards $75.
Shopify (SHOP)
Shopify will report results on Thursday morning, and the company really has an amazing product. But the valuation is just so hard to grasp. A stock like Shopify should rally into results, not declining. Watch for this one to head towards $850 after results, just not liking the pattern or momentum loss.
Amazon (AMZN)
I think Amazon will report on Thursday that are good enough results to send the stock higher, back to around $3,485.
Facebook (FB)
Facebook will also report on Thursday, and again, like the others, I think the results will be good enough to get the stock moving back to its highs around $303.
-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.
Subscribe to receive this FREE daily commentary directly in your email
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.
rtm9 29 25
Mott Capital's Market Chronicles 9 hours ago