March 13, 2019
Michael Kramer and the clients of Mott Capital own Apple and Verizon
- S&P 500 Futures +2.25
- US 10-Year Yield +2.62%
- Oil $57.47 +$.0.60
- VIX 13.62
- Dollar Index 96.89
- Japan Nikkei -0.99%
- China Shanghai -1.09%
- Hong Kong HSI -0.39%
- Singapore STI -0.52%
- South Korea KOSPI -0.41%
- Australia ASX -0.22%
- UK FTSE -0.05%
- German DAX -0.10%
Global Growth Proxies
- Copper $2.9365
- Silver $15.53
- Platinum $845.10
International Trading Session
Asian markets were all sharply lower overnight despite a better day in the US.
The South Korea Kospi despite falling some managed to finish off its lows and continues to hold support around 2,135. This may be a potential development, and if the index can bounce it would be a positive sign for global markets.
Despite all the uncertainty surrounding the future of Brexit, the UK FTSE has actually held up reasonably well. The index has been range-bound between 7,120 and 7,200 for the last few weeks. I think at the very least it would suggest that the markets at this point may have adequately priced in all Brexit risks.
US Trading Session
S&P 500 (SPY)
The S&P 500 continues to trade in a range. 2,800 to 2815 continues to be the significant level of technical resistance. Until we see something change surrounding this resistance level, it is best to say that the index is range bound. At this point, I just don’t see any signs that change that view in the short-term.
Boeing shares continue to struggle, and that is terrible news for the stock. It is struggling to hold support at $371, and a drop below that level spells further downside risk with the potential for a decline to around $330.
Amazon is expected to see its ad business skyrocket in 2019. The stock, however, has not been skyrocketing. The big test for the stock continues to come at that downtrend, which is currently around $1700. That trend has held firm now since October. My often on and off call has been for the stock to fall to around $1,520. It has been torture the last few weeks to gauge the direction of this directionless stock.
Verizon is going to charge just $10 a month for 5G? Seems like a deal to me. Especially if the speeds and the promise live up to the hype. The stock has had a tough time moving up. Perhaps finally the stock can start moving higher and approach $60. That has been a very tough price for the stock in the past.
Roku was downgraded by both Loop and Macquarie today with a price target of $45 and $57, respectively. The stock is dropping below support at $70.50 in the pre-market and the next level of support comes around $64.
Keep an eye on Apple today as it approaches a break out should it rise above $182. I wrote an analysis of the stock with a look at the options market yesterday.
There may or may not be a PM edition. I have to be somewhere this afternoon and it depends on the time I get home to work on it and how much energy I have left.
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