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.
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How Much More Punishment for AMD, Nvidia, Roku, and Netflix Plus So Much More
MICHAEL KRAMER AND THE CLIENTS OF MOTT CAPITAL OWN SHARES OF NFLX AND DIS
S&P 500 (SPX, SP500)
Another fun-filled day of adventure in the stock market. I’ll tell you these are turbulent markets to try an navigate. You can see that even I struggle with this stuff on someday and I have followed the stock market since I’m 16, I’m going to be 41 in 2 weeks. Yeah! I always wondered when it that someone is considered middle age? Is like 41? Or does it start your younger than that? 50 would be great!
Anyway, back to stocks. Yeah, so the S&P 500 formed this new layer of resistance that I did not expect. You can see it in the chart below with the purple line I drew in. I also drew in a green uptrend. So the good news once again is that there is an uptrend. The bad news is that there is a much stronger downtrend in place. But wait, because it gets even worse. Which way does the market go from here? Well, we are going to find out Monday, why? Because by Tuesday we will either be on our way higher or lower. Because by the end of day Monday the S&P 500 will have gone through one of these trends. On this one, I really can’t tell.
AMD was smoked today falling by 11% to $23.67. Ouch. I still think it goes lower; maybe it stops at $22.40. But ultimately I think it goes $20.
Roku continues to melt, and now it looks like maybe going to $52.75. Some jerk on Seeking Alpha wrote this lame article on October 1 saying the stock was 40% overvalued. Roku’s Stock May Overvalued By As Much As 40%. Does this idiot know Roku is the future of streaming tv?
By the way, I never even read the comments, after I wrote the article. I’m just guessing that someone or a collection of people said that.
Today, I received a bunch of questions from people on StockTwits on Nvidia. I thinking it is going to $217.
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I am perplexed by the price action in Netflix. They reported blow out results and the stock doesn’t go up? I can’t remember the last time that happened for Netflix. So yeah, it has me a little concerned. Usually, when a stock does not rise after strong results, it means the market does not believe the good times can last. Perhaps the market thinks that Netflix guidance is way too optimistic.
PayPal rose after it reported results and if can it rise above $86 it looks like it can go to on to around $90 -92.
When was the last time P&G went up 9% in a day? Well, it may have even more to rise if can get over $88.50. Maybe rising to $93.
Look at Disney go! All-time highs are coming! Finally!
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.
SP500, SPX, NFLX, ROKU, AMD, NVDA, PYPL, PG