This column is my opinion and expresses my views. Those views can change at a moments notice when the market changes. I am not right all the time and I do not expect to be. I disclose all my positions clearly listed on the page, and I do not trade my account on the stocks spoken of in this column unless fully disclosed. If that does not work for you stop reading and close the page. Do not bother me or harass me.
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Stocks – TSLA, WFC, GM, ZM, WMT
Macro – SPY, TLT
- T.W.A. – Gamma Speculative Squeeze May Push Stocks Higher
- MIDDAY- HERE WE GO AGAIN, GAMMA, GAMMA, GAMMA!
- Morning Note- Euphoria
- Stocks Enter Bubble Zone
- Midday- As Long As You Know What You Are Up Against
- Morning Note – Waiting For The VIX To Fall
- MIDDAY – Bonds And The Dollar Don’t Seem As Excited As The Equity Market
- Link To Live Broadcast Starting 5 Mins
MICHAEL KRAMER AND THE CLIENTS OF MOTT CAPITAL OWN TSLA
HERE IS A FREE EDITION OF READING THE MARKETS WEEK AHEAD VIDEO. FEEL TO SKIP AROUND TO VIEW PARTS THAT MAY INTEREST YOU. THE CIRCLES ON THE TIMELINE REPRESENT DIFFERENT CHAPTERS
Stocks appear to have broken out from their previous trading range with Friday’s surge higher. The move higher was even more impressive because the market could stage an end of day rally to close at a high.
S&P 500 (SPY)
The chart for the S&P 500 seems to suggest an increase to around 3950 is likely coming over the very short-term.
Just how far equities rise may be determined by the bond market and how far yields rise. Or it may be the other way around; how far yields rise will be determined by how far equities allow them to. The 10-year broke out last week and is likely to climb even higher from here, with the potential to move to 1.4%.
This week saw a big drop in the TLT due to yields on the long-end of the curve rising. Based on this chart, the TLT could still be heading lower, perhaps to $148.75.
Tesla has rocketed higher, and the stock is getting to extremely overbought levels. Meanwhile, the implied volatility level has surged to around 91%, despite the stock rising. This is a classic sign of a convexity squeeze taking place. It could still go higher first, maybe to around $980, but be careful. This squeeze can unwind at any moment, and options expiration is on Friday. (Paid subscriber content – T.W.A. – Gamma Speculative Squeeze May Push Stocks Higher – first 2-weeks are free!)
General Motors (GM)
General Motors may be heading higher. This past week there was a bunch of bullish betting taking place in this stock, and it has a bullish continuation pattern known as flag pattern. I think it could be on its way to $52.80. (Should be free to read- General Motors’ Stock May Be Ready To Surge Higher)
Wells Fargo (WFC)
This week, I noted in another story that Wells Fargo could be heading higher due to higher yields and wider spreads and based on some bullish option betting and a break out on the chart. An advance above $33.60 could send it towards $36.50. (Should be free to read – Wells Fargo Could Climb Even Higher)
Walmart has also struggled of late and could be heading lower, based on an overvalued stock, bearish betting, and a technical chart that suggests prices could fall to around $142.50. (Should be free to read – Walmart’s Overvalued Stock Is Likely To Struggle Going Forward)
Zoom has continued to struggle, and the stock is again testing support at $342, with the stock’s potential to fall to around $325. This stock isn’t growing fast enough to support this ridiculous valuation.
Have a good one!
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.