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. 

S&P 500 (SPY) 

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

 

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

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