A Glass Half Full or Glass Half Empty - The Fate of The Stock Market

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September 3 – Stock mentions – SPY, SQ, GE, AMZN, MSFT, ALXN

Michael Kramer and the clients of Mott Capital own MSFT

Looking For A Sign

The past few weeks have been incredibly trying. You can look at the glass as half full and half empty, and in both cases, an observer could find plenty to support either view.

An observer of a glass half full could argue that despite all the negative headlines the market has held steady, and has remained resilent. An observer that sees a glass half empty could point to the index’s inability to rise above 2935 on multiple occasions.

The part that is so difficult to grasp is what happens next. Generally speaking, I have a good sense of direction when it comes to the broader market. But lately, I feel I have lost my way. I can not determine the movement in the market, and that makes me incredibly uneasy. Why does it make anxious? Because I know the next move in the market will be a move that sends it sharply higher or lower.

So patiently I resign myself to the fact, that looking for clues and subtleties are not easy to find. However, when looking abroad instead of finding markets that are breaking down, I’m finding markets that appear to be improving. It leaves me feeling cautiously optimistic that the summer doldrum will pass and a period of higher prices await. However, we need to remain patient for the markets next signal. I explain more in my premium service video: Looking To Intl Markets For Guidance

S&P 500 (SPX)

The three-ring circus continues with the S&P 500 on September 3 refilling a gap from last week. If the current pattern holds, and the trend continues to rise, then an ascending triangle is forming, which leads us to the big break out at 2935. However, if the trend doesn’t hold, and the index breaks the uptrend, then the index will fall and retest 2825. Premium content: Stocks Slipping On Weak ISM

GE (GE)

When you are off, your off. Even with the markets sharp decline, GE still managed advance. Unreal. The last line of defense until an increase to $8.80 is around $8.40. GE’s Declines May Only Be Starting

Square (SQ)

Square is looking very weak recently, and very close to a big break down that could send SQ much lower perhaps to around $52.

Amazon (AMZN)

Amazon got a big price target boost from RBC, and the stock outperformed. But again, Amazon failed at resistance at $1800, another stock that can’t get itself moving higher.

Microsoft (MSFT)

I re-drew the Microsoft chart slightly today. It doesn’t matter much because there is nothing positive or negative forming here at this point. Resistance and support remain unchanged.

Alexion (ALXN)

Alexion is at a do or die moment, with the potential for shares to fall to roughly $85.

That is all for today.

Until tomorrow.

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.

A Glass Half Full or Glass Half Empty – The Fate of The Stock Market