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June 6, 2019 – Stock Mentions: SPY, AAPL, TSLA, AMD, MU, C
The Fastest Reading Morning Commentary on Wall Street
Michael Kramer and the clients of Mott Capital own TSLA, AAPL
- S&P Futures +7
- US 10yr – 2.1%
- VIX 16.04
- Dollar Index 96.93
- Oil $52.13
- Japan Nikkei -0.01%
- China Shanghai -1.17%
- Hong Kong HSI +0.26%
- South Korea KOSPI +0.10%
- Germany DAX +0.20%
- UK FTSE +0.57%
S&P 500 (SPY)
The stock market is sets to open higher once again on June 6, setting up a potential showdown with resistance at 2,836 on the S&P 500. However, given the sharp rise in the index, support comes at 2,812 and then the downtrend, which has fallen to around to a range of 2,800 –>2,794.
I think the first test may be difficult to break out.
Apple may continue to rise today after it was initiated at Evercore with an Outperform and $205 target. The next level of resistance comes at $195 first.
AMD was upgraded at Morgan Stanley to overweight from underweight and $28 target. I saw some bullish call activity for the June 21 $35 strike price. The open interest rose today by almost 14,000 contracts to a total of almost 22,000. A buyer of the calls needs the stock to rise to around $35.20 by expiration.
The next big test for AMD comes at $31.40.
Demand issues at Tesla? Not based on the latest info from Electrek. According to the website, the company is aiming to make 66,000 deliveries in North America alone. A rise above $205 takes the stock to $225. The stock is challenging $205 already in the premarket. I guess Alexa was right.
Micron is likely to struggle as DRAM prices continue to slide, according to DigiTimes. A drop below $32.50 sets up a decline to $29. One has to wonder if management will need to revise its second-half outlook when they report results. It would sound like it.
Watch Citigroup today. The stock is stalling out around $66. If it rises above $66, it can move up to $70. If it can’t, it goes back to $61. I think it goes back to $61.
ECB stuff in the afternoon write-up.
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