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Michael Kramer and the clients of Mott Capital own AAPL, NFLX
The machines were in full force in Monday’s trading action with the bond market closed. Algo’s played a game of fill the gap across multiple indices and stocks. I had noted in a commentary on October 31 the market was poised to fill the technical gap created that day. It just didn’t happen nearly as quickly as I would have liked. Instead, the S&P 500 and NASDAQ went on to rally, but now that rally is over, and that gap is closing.
It may also mean that again trends for better are in the works. Once the gaps are filled, the previous trends resume. It may mean higher prices are once again. The storm may finally be blowing over.
NASDAQ (QQQ, NDX)
Its gap and the sell-off was most pronounced on the NASDAQ with the gap nearly filled at 7,180. The index managed to fall to 7,193. Pretty close.
S&P 500 (SPX, SP500)
The S&P 500 filled the gap created on November 7 but has not filled the gap from October 31. Which is a concern for me.
Russell 2000 (IWO, IWM)
The Russell is managing to hold support around 1,520.
The VIX managed to fill it gap from November 7 too at roughly 20.50.
All the gaps in the Semiconductor ETF (SMH) have now been filled as well. The good news is that support at $91 holding rather nicely.
Consumers Stocks (XLY)
Consumer Discretionary (XLY) filled its gap and but could be a bit more downside here.
You want more gap fills you say?
Amazon, anyone? Yeah filling the gap to around $1,630. What happened to $1860? That is what I want to know. If $1,620 holds, I still think $1860 is coming, just not as we thought.
Netflix kind of/ sort of filled a gap, a weak fill.
What a disaster Apple has become, today Lumentum Holdings noted it got a notification from its “lead” customer fewer of Lumentum’s will be needed. So obviously that customer is most likely Apple. The fallout continues. Can you see why Apple has had enough for disclosing iPhone units to investors? Anyway, the good news here is that the stock managed to hold support around $194. Additionally, the stock found a bounce off its 200-day moving average. Oh, and by the way, it filled a gap from back in July.
AMD filled a gap a few days back, but unlike the others, this was a gap lower, and now that gap is filled and it is reverting to the previous trend which is down. I think $16 is in the works.
Goldman looks like it is heading towards its lowest levels in 2 years, and that means $200. If that doesn’t hold, then $180.
Morgan Stanley (MS)
Morgan Stanley is a train wreck just like Facebook. Look at that downtrend since March. Nasty. To think this RSI is still trending lower. The stock is likely heading to $41.
BofA failed at resistance at $29ish and, is now its way back to $26.
Boeing gets rejected yet again at $371. Oy!
Gap fill in the works for GM, except this one is lower to $34.70.
I just remembered today is only Monday!
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