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September 3, 2020
STOCKS – AAPL, TSLA, SHOP, ADBE
Macro – QQQ, XLK, DOLLAR, GLD
Mike’s Reading The Markets (RTM) Premium Content – NOW WITH A 2 WEEK FREE TRIAL
- The NASDAQ Just Hit That Level Again – Midday
- Why The VIX And Dollar Are So Important – Morning
- Stocks Continue Higher As We Enter Election Season
- Market In Overdrive, How Much More Upside?
- Technology Continues To Rule – Midday
MICHAEL KRAMER AND THE CLIENTS OF MOTT CAPITAL OWN AAPL AND TSLA
MICHAEL KRAMER OWNS QQQ PUTS
NASDAQ 100 (QQQ)
Stocks in the US are pulling back some today, especially in the NASDAQ 100. The Qs are down about 80 basis points, which is nothing considering how much they are up just this week. But given the size of the move in recent weeks and its location on the charts, it wouldn’t be surprising to see this turn into something more, with the first level of support around $291, then $284, and $278. A 9% drop from where we closed on Wednesday is possible, and still, keep the ETF in the uptrend.
TECHNOLOGY ETF (XLK)
If there is one thing to consider is that the XLK has formed a bump and run pattern, and that is usually a bearish reversal pattern, and with an RSI of almost 84, a pullback to $118 seems quickly done.
DOLLAR
The dollar may continue to catch a bid, especially if the ECB is intent on focusing on the euro. That is terrible news for risk-assets and gold. The significant level to watch is 93.50.
GOLD (GLD)
Watch for a break of support at $1925 on gold, sending it to $1865. Support as been strong, but the longer it test support, the more likely it is to break it. I talked about this in more detail yesterday more in the subscriber area – (Mike’s Premium content with the first 2-weeks free – Why The VIX And Dollar Are So Important – Morning)
Tesla (TSLA)
Tesla shares are trading lower today by about 6% to $420. The stock has started to come under pressure since announcing it intents to sell up to $5 billion in stock. It is a smart move, why not especially given how much the stock has run-up. The stock did break critical support yesterday at $442, and $390 is next. I did end up reducing my holdings again in the stock, back to 10%.
Apple (AAPL)
Apple is also trading down some today, but support looks pretty firm around $124. A break of $124 sends the stock lower to around $115.
Adobe (ADB)E
Adobe has been another big winner in this technology rally and should find some strong support around $510 if a pullback develops.
Shopify (SHOP)
Keep an eye on Shopify for a potential head and shoulders pattern, with a break below $910 presenting long-term issues.
Have a good one.
-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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