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MAY 4, 2020
STOCKS: MSFT, AMZN, WFC, QCOM, DIS
MACRO: SPY, EWG, TLT
MIKE’S READING THE MARKET PREMIUM CONTENT
- Volatility May Be High With Significant Downside Risk Starting This Week
- Many Signs Point To Lower Equity Prices
- Earnings Continue To Detoratiate
- A Significant Number Of Uptrends Have Broken
- Volatility Rising – Morning Commentary
- Understanding On Close Imbalances
MICHAEL KRAMER AND THE CLIENTS OF MOTT CAPITAL OWN MSFT
Stocks are falling on May 4, with the S&P 500 ETF’s suggesting a drop of 1%. Selling overseas is a bit worse, but then again, their markets were closed on Friday, so those markets are playing a game of catch-up.
Germany (DAX)
At the moment, Germany is holding a critical level of support round 10,390.
S&P 500 (SPY)
S&P 500 futures are falling, and currently trading around 2,800. This is a pretty significant level based on options positioning. It also means that the great there is a great deal of risk here, with the next significant level of support coming around 2,730. Additionally, the uptrend in the RSI has been broken at this point, and it suggests that the bullish momentum we have seen has shifted back to being bearish. I went over this all in much more detail in the premium area – Volatility May Be High With Significant Downside Risk Starting This Week
US 10-Year
Again, I have now said several times; I have a great deal of concern over what the 10-Year Treasury is suggesting.
Qualcomm (QCOM)
Qualcomm was initiated today by Wells Fargo with an underweight rating and a $70 price target. Again, nothing has changed here in my view, and I continue to think shares fall to around $65.
Disney (DIS)
Disney was downgraded by MoffettNathanson with a $112 price target. Again, I think this one still falls further to $92.85.
Wells Fargo (WFC)
Wells Fargo was downgraded to Sell from Neutral at UBS. The price target was also trimmed to $19 from $21. The pattern in Wells is very bearish, with the drop below $26.00 trigger a very sharp sell-off.
Amazon (AMZN)
Amazon is testing the uptrend this morning with a break sending the stock back to $2,090.
Microsoft (MSFT)
Again, I continue to think Microsoft goes back to $161.
Have a good one!
-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.
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