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MARCH 29, 2021
STOCKS – JD, AAPL, IBM, COST
MACRO – SPY, IWM, XBI
Mike’s Reading The Markets (RTM) Premium Content – FREE 2-WEEK TRIAL
- Midday- Defensives Lead S&P 500
- Morning Note: Margin Call, Gentlemen
- T.W.A – A Tale Of Two Markets
- PODCAST- WHY FRIDAY WAS LIKELY A MECHANICAL MOVE
- Midday – Waiting For TIPS To Break
- Morning Note: Another Volatile Day Lies Ahead
- MIDDAY: Sell-Off Not Over Yet
- Morning Note: On The Brink
- Midday- Stocks Pull back As Dollar Nears Next Move Up
MICHAEL KRAMER AND THE CLIENTS OF MOTT CAPITAL OWN AAPL
The S&P 500 finished the day down about 10 bps, and the Qs finished the day lower by just 3 bps. But the real story was in the Russell, which continues to get hammered, falling almost 2.8%. The small-cap index traded around resistance all day at 2,175.
S&P 500 (SPY)
There is really not much to say about the S&P 500 today, with the index remaining in the same range it has been in since the middle of February, with the upper end of the range of the Futures still at 3,960.
VIX (VIX)
The VIX also finished the day at 20.7. So the VIX and the S&P 500 futures continue to hang in the 20’s and 3,960 regions, as noted so many times previously, as the upper end of the range. It didn’t look great on Friday, but who knows, maybe it is the right call, and this the top. It was hardly a good day with the best performing sectors defensive in nature. Utilities, staples, and health care made up 3 of the top 4 performing sectors. After the communication sector’s beating last week, today’s strong performance for the group is hardly noteworthy. If these are the sector left to perform the best in the market, there will be serious issues.
Options
Call option volume continues to dissipate, and as I have said before, this will be a big problem for the NASDAQ and technology names going forward.
Biotech (XBI)
The XBI Biotech ETF looks scary, with a descending triangle pattern. The next level of support comes around $127.
Costco (COST)
Costco is at an interesting point. The stock has raced off the lows and is now close to resistance at $356. The stock went from oversold to nearly overbought in a straight line. Does it breakthrough and race back to the highs, or does it fail and push lower. Tough call, I’m just going to watch.
IBM (IBM)
Is that a giant inverse head and shoulders on IBM? Does IBM’s stock go up? It hasn’t gone up since 2013! I’m not sure about the up thing, but it certainly looks like a head and shoulder pattern, potentially pushing higher towards $148.
JD (JD)
The RMB is starting to weaken versus the dollar, and that is never a good thing for JD.com’s stock. There is a giant gap that needs some filling down around $67.30.
Apple doesn’t look great here, and I think there is a good chance this stock heads to $110, maybe lower.
-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.
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