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12.14.20
Stocks – AVGO, AMD, NFLX, MO
Macro – SPY
Mike’s Reading The Markets (RTM) Premium Content – NOW WITH A 2 WEEK FREE TRIAL
- Algos Playing Their Usual Games
- The Start Of A Busy Week
- Three Potential Paths For The S&P 500 Over The Short-Term- The Week Ahead
- Stocks Drop With More To Come?
- The Calm Before The Storm – Video
- The Calm Before The Storm
- It May Be Another Rough Day For Overvalued Tech
- Stocks Turn Lower, More To Come
- The Snowflake Convexity Squeeze
The S&P 500 finished the day lower by almost 50bps, after gapping higher by as much as 1% to start the day. It marked a 1.35% reversal from the peak to finish the day at 3,647.
I’m not sure if there was really any news that changed anything, but some blamed it on new fears of lockdowns here in the US. To this point, the market has never cared about new lockdowns. The reason for the turn lower really doesn’t matter much.
Overall, the index failed right at resistance around 3,700, filled the gap, and pushed lower. Again, as noted in my video from this weekend, 3 of 3 paths I mapped out suggested further decline for the short-term. Whether this is the start of something severe or not is too early to know. (Subscriber only video – Three Potential Paths For The S&P 500 Over The Short-Term- The Week Ahead – First two weeks are free to try)
AMD (AMD)
AMD got an after hour price target bump from Goldman, which pushed its target to $110 from $96 due to expanded market multiples. Yeah, sure, whatever. Regardless, the stock is getting close to breaking out of its trading range. We won’t know for sure until tomorrow, and it will take a close above $96 to confirm that break out.
Netflix (NFLX)
Netflix has filled the gap at $525 and based on that, the stock should resume its trend lower. The RSI is trending lower as well, suggesting a return to $495.
Broadcom (AVGO)
Broadcom rose today and tested the breaking of the uptrend, and failed. It should result in the stock trading lower back towards $400, as noted yesterday.
Altira (MO)
Altira may be breaking out; the stock appears to have formed an inverse hand and shoulder pattern, while breaking resistance, and a downtrend around $42, three bullish indicators. If the stock can hold on to $42, I think it has a chance of going to $47.
Have a good one
-Mike
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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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