MARCH 29, 2021
STOCKS – JD, AAPL, IBM, COST
MACRO – SPY, IWM, XBI
- 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.
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.
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.
The XBI Biotech ETF looks scary, with a descending triangle pattern. The next level of support comes around $127.
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.
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.
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.
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