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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JUNE 1, 2020
STOCKS – FB, MSFT, MU, PFE
Macro – SPY, COPPER, DOLLAR
MICHAEL KRAMER AND THE CLIENTS OF MOTT CAPITAL OWN MSFT
MIKE’S READING THE MARKET PREMIUM CONTENT $35/MONTH OR $300/YR–
- MANY KEY EVENTS THIS WEEK
- Dealers Still Supporting The Market
- A Busy Next Week Starts Today
- Thinking About Where Stocks Go Next
- Nearing A Major Turning Point -Midday
- Options Bet Indicate Apple May Drop Soon
S&P 500 (SPY)
Stocks futures have been volatile, with the S&P 500 trading as low 3009 and trading as high as 3050. The broker-dealers are still very much controlling the trading range we spoke about Friday. So for now, there isn’t much of anything new to say, with 3050 remaining resistance and 3000 remaining support for now. But that is likely to change today, once we get the ISM manufacturing data at 10 am.
I have no idea if this data will be good or bad or what it will say, so it is impossible to know which way the market will break. But the trends, for now, have been higher, and that is hard to fight until proven otherwise.
Copper prices are moving slightly lower today, and remember that copper and the NASDAQ 100 have been highly correlated the past few weeks.
Dollar Index (DXY)
The dollar index is also moving lower today, and it is starting to show some signs of weakness.
Micron hasn’t performed particularly well since upping its guidance for the quarter. $49.80 is the critical level. If the stock keeps failing at that price, it likely means that the good news won’t be enough to lift shares. If you are a bull you need to see Micron move higher.
Pfizer is moving sharply lower following after reporting some disappointing cancer data. The stock held support at $34.90. That’s important, but $37 is likely to serve as resistance.
Microsoft is still hugging the uptrend, and either the stock is going to breakdown or breakout soon. If the stock continues to hold on to that uptrend, then there is a good chance that the stock is forming an ascending triangle. We will find out one or another over the coming week.
Facebook has moved back into the trading channel over the past few sessions. Again, if you are bull, you need Facebook to continue to push higher in this channel. A break below the lower channel band would not be positive.
That’s all for today.
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.