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Michael Kramer and the clients of Mott Capital own Tesla and Visa
Stocks finished the week off flat with the S&P 500 at 2,706. The NASDAQ did fall about 30 basis points, but some of those losses are likely due to Amazon’s decline of nearly 5.5%. The S&P 500 did struggle a bit at a minor technical resistance around 2,716, but I do not expect that level to act as a significant problem for the market.
Amazon (AMZN)
Amazon fell to technical support right at$1,620. It held near that level all day. The chart is looking even worse than before earnings. It shows that a downtrend is still firmly in place, with the chances for the stock falling to $1,475 increasing. Additionally, the RSI continues to trend lower, with no sign for a change in direction. It is a bearish trend, and it is hard to ignore because after the RSI trend has been the right call now for some time.
I wrote an article on Amazon today, which is free, expanding on yesterday’s blog. I take it a bit further, with some added dates. It shows that the slowed in sales growth is steeper than I had initially thought.
The chart below shows the trend in total sales growth including the company guidance and then analysts future sales estimates. It would suggest to me that perhaps 2019 growth estimates still have further to fall. You can read more here: Amazon Is Now A Slowing Growth Story
Ok, let’s move on, I had enough with Amazon.
Micron (MU)
The chip stocks continue to be hot, with Micron rising to about $39.60 and the stock is quickly approaching our resistance zone between $40 and $42. I think the stock can rise to the upper area of $42. The reason is that RSI has now apparently broken its downtrend and is trending steadily higher. A big positive!
On Semi (ON)
On Semi is another name that is rallying and is nearing resistance at $21.90.
Roku (ROKU)
Roku continues to trend nicely higher, and the stock is still likely heading towards $48.
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[youtube-feed feed=7]Visa (V)
Visa was down yesterday following results, for reasons that are still beyond me. But today investors seemed to change their mind because the shares rose sharply recovering tall their losses and adding on some to resistance at $140. It looks like this might be a tough level for the stock. We need to watch this one.
Tesla (TSLA)
Tesla still appears to be on its way towards $330.
Happy Friday! Plenty more over the weekend!
-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.