This column is my opinion and expresses my views. Those views can change at a moments notice when the market changes. I am not right all the time and I do not expect to be. I disclose all my positions clearly listed on the page, and I do not trade my account on the stocks spoken of in this column unless fully disclosed. If that does not work for you stop reading and close the page. Do not bother me or harass me.
Otherwise, enjoy the column!
Subscribe to the Monster Stock Market Commentary and join the 1,839 subscribers getting it for FREE every day!
Freaky Friday For Tesla, Intel, AMD, Nvidia, and the Bank Stocks
MICHAEL KRAMER AND THE CLIENTS OF MOTT CAPITAL OWN SHARES OF ACAD AND TSLA
A big thank you to all the loyal reader of my commentary. This month I hit a record with nearly 16,000 page views compared to just 2,000 September 2017. When I started developing this commentary a year ago, I didn’t imagine there could be this much growth in one year. Thank you for coming back every day to get my thoughts and points of view.
I’d also like to thank MarketWatch for using our commentary again as part of their Need to Know Column.
Moving on then…
First, it was Wacky Wednesday and now it is Freaky Friday.
I think the market just sent Elon Musk a pretty big message driving shares of the stock lower by 15%. But then again who knows what the mix was between long sales and short-sales. I guess there was a bit of short-selling in the market. The borrowing rate did jump from around 1.5 to 2.25%, which tells there plenty of shorts in the mix. But then may have been completely obvious.
But anyway, it should have been a day of excitement for investors thinking about Model 3 deliver and whether Tesla could hit their production guidance. What went seemingly unnoticed is a report from Electrek saying the company hit their guidance for Model 3 production two days ahead of schedule.
But honestly, nobody gives a shit about that today, because everyone is wonder why he didn’t take the deal. I’m mystified by it.
Like I said yesterday, downside support is around $250.
Let’s go back to Intel because it shot higher today after the company noted it was adding $1 billion to CAPEX to meet demand and was backing its full-year revenue guidance.
The stock up and it feels like it is breaking out (again). I drew in a new uptrend today, and I think that is significant because it gives us something to gauge the stocks rise. The stock did hit resistance around $47.70, and backed off. I could see a retracement back to $45.80 to support. But I think the trend has now changed from lower to higher.
What is good news for Intel is bad news for AMD, with the stock dropping below two levels of support and the continues to be $29.40.
Acadia gave back some of its gain. It was just yesterday I was complaining that I wanted it to consolidate. Profit taking? Probably. I still think this one rises longer term. I’m looking forward to the results of their Clarity study in Depression, I’m hoping in October.
I find it strange in a way that company went ahead and started a trial for patients with PDP and Depression back in March with know the Clarity results. Maybe I totally missed this back then, but I have no memory of seeing a press release on it.
The banks are getting hit hard again. Man this group just can’t get out of its own way.
Morgan Stanley (MS)
Morgan Stanley fell below support and is now at its lows of the year around $46.40. If it doesn’t bounce Monday, it has more to drop probably to $44.10
Goldman could be on its way to $215. To be honest, that looks like a nasty head and shoulders pattern. If it is, it broke the neckline, and that is terrible news.
JP Morgan (JPM)
JP Morgan could be on its way to $106.
Bank of America (BAC)
BofA may be on its way to $28.
I don’t want to leave you bummed out for the weekend. Evercore ISI put a report today upping Nvidia to a $400 price target from $300. I wrote a piece for Investopedia today, saying It could rise to about $290 based on the charts.
I may take the weekend off. So if you don’t hear from until Monday, don’t be surprised!
Michael Kramer is the Founder of Mott Capital and the creator of Reading the Markets.