Can The Stock Market Turn It Around on Thursday, May 30

Can The Stock Market Turn It Around on Thursday, May 30?

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May 30 – Stock mentions: AAPL, AMZN, INTC, TSLA, V,

Michael Kramer and the clients of Mott Capital own AAPL, V, TSLA

US Markets

  • S&P 500 Futures +12 points
  • US 10-Year 2.26%
  • VIX 17.23
  • Oil $59.13
  • Dollar Index 98.12

International Markets

  • China Shanghai -0.31%
  • Hong Kong HSI -0.44%
  • Japan Nikkei -0.29%
  • South Korea KOSPI +0.77%
  • UK FTSE +0.45%
  • Germany DAX +0.59%

International Markets

Shanghai

Perhaps there are at least signs emerging that the global markets are stabilizing. While the US equity market has drifted lower, markets overseas continue to show a bottoming process, especially in China. We can see that the Shanghai Composite has managed to stabilize between 2,825 and 2,920. Overall, the RSI for Shanghai continues to trend higher longer-term, and we can begin to see that shorter-term the RSI is now starting to rise.

US Trading

Semis (SMH)

The Semis appear to have a pretty solid correlation to that of the Shanghai composite, and perhaps the two are a signal the broader sell-off may be entering or has entered its last phase down.

 

S&P 500 (SPY)

While of course, there is a strong correlation between the Semis and the S&P, one can also see the divergence between the semis and the S&P 500 had in the middle of the summer. That, of course, looking back on things may have been the canary in the coal mine at the time.

 

The levels to watch for the S&P 500 today come at 2,768 and the 200 day moving average around 2,770.

Semis (SMH)

For the semis, the most critical level for the SMH is at $96.50.

Tesla (TSLA)

Perhaps the days of Tesla’s free-fall are coming to an end. We can see that the stock has held around the $190 level for the last few trading session, and now it would appear a falling wedge pattern is forming, suggesting a climb back over $200 towards $210.  I still think there is upside to $250.

Amazon (AMZN)

Amazon has been a reasonably quiet stock in recent weeks, but that may be about change. The stock has held support firmly around $1800, and the pattern in the stock suggests that the stock rises. The shares could be approaching a break out that sends it back to $1850 and then potential higher towards $1900.

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Intel (INTC)

Intel has held firmly above $42.50 and that continues to indicate to me rise back to $46.

Visa (V)

Visa appears to have formed a bullish rising triangle. An increase above $165.80 sets up a move towards $173.

Apple (AAPL)

Finally, Apple may be the biggest bell weather of them all when it comes to the risk of the trade war. As I noted yesterday, there is a falling wedge in the chart, and it suggests AAPL rises perhaps back to $182 for starters.

 

Good Luck today!

-Mike

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.

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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.