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January 31, 2020
Stocks: AMZN, TSLA, NFLX, AAPL, ROKU
Macro: SPY
MICHAEL KRAMER AND THE CLIENTS OF MOTT CAPITAL OWN NFLX, AAPL, TSLA
Clearly, the sell-off isn’t over, and once again, the market proved me wrong, you can’t win them all. Apparently no body wants to go long into the week end ahead of the China market opening. Where there is a high likihood the market could be down quite a bit. It seemed after a tense week of trading, the 3,245 region was strong support, but clearly, that is no longer the case. Very dissappointing, and not what we wanted to happen.Â
S&P 500 (SPY)Â
More damaging was the uptrend in the S&P 500 has been completely broken, and that is not a good sign either. It put a support region at 3,216 in play, followed by 3,200. After that there is a long way to go to perhaps to as low 3,150. Premium content – Lots Of Damage Done To The Charts
Amazon (AMZN)
Amazon had a good day but failed at resistance, which was the old highs of 2060. We will have to watch how this one continues to trade, but I suspect this will not be an easy level for the shares to breakthrough.
Tesla (TSLA)
Tesla was up, continuing its hot hand, and shares could still heading much higher. Consider that the stock is still trading below its June and March 2017 price to sales multiple, the last time it was at an all-time, of just over 3.
Currently, analysts see revenue rising to $40.88 billion in 2021, so at 3.1 times sales, the market cap increases to around $127 billion or about 9 percent higher on the stock, or to $705. The stock is consolidating nicely just below the after hour highs of $662 we marked off earlier this week.
Apple (AAPL)
Apple fell hard, as it should given its exposure to China. It gave back all of its post-earnings gains but managed to hang on to support at $311.
Netflix (NFLX)
Netflix continues to hold support around this $340 level. I noted a nice option traded on Netflix earlier this week in the premium areas. Why Netflix Stock May Have Bottomed
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Roku (ROKU)
Well, it looks Roku finally broke. It dropped below support at $128 and plunged to around $121. Oh well, that sucks. I guess I was right after all.
Take care
-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. Â
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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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