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July 21, 2020
Stocks – AAPL, NVDA, NFLX, SNAP, 700 HK
Macro – QQQ, SPY,
Mike Reading The Markets Premium Content – $35/Month or $300/Year
- Nothing Makes Sense Anymore
- Still Buying Puts On The Markets
- A Decpitive Bull Run – Morning
- Stocks Just Keep Going – Midday
- Bullish Betting Returns To GE
- Waiting On Key Vaccine Data – Morning
- AMD May Be Ready For A 10% Drop
MICHAEL KRAMER AND THE CLIENTS OF MOTT CAPITAL OWN AAPL
Stocks jumped on July 21, then fell. The volatility levels seem to be at extremes, even though they are not reflected in the VIX index. The S&P 500 had been up by around 70 basis points but finished the day up just 18 bps. Meanwhile, the NASDAQ 100 finished the day lower by 1%.
S&P 500 (SPY)
The S&P 500 gapped higher today, and by days end, that gap was filled. The index tried to break out, rising to as high as 3,275 but closed well short of it. At this point, we can say that the index failed to break out in that 3,265 region.
NASDAQ 100 (QQQ)
The big question, I’m sure everyone is wondering is if the NDX is forming a double top. The answer is that it is too soon to tell. The NDX would need to fall below that 10,400 level. There is the possibility of a bump-and-run pattern has formed in the index also. The RSI is trending lower now, and that is important to note.
Again, I continue to see bearish put buying in the Qs that suggesting there is plenty of people betting the markets fall from here. I know it is hard to believe, but it is what it is. (Premium content – Still Buying Puts On The Markets)
Netflix (NFLX)
Netflix broke through support today at $495. I happen to think $475 is next.
Nvidia (NVDA)
Suddenly Nvidia has a minor downtrend forming to match its declining RSI. No bearish options bets today, but we have seen plenty in recent days. (premium content – Bearish Bets In Nvidia Continue)
Apple (AAPL)
Apple is very close to the uptrend now, a break of the uptrend would be terrible news for the entire market. The RSI is rolling over, $372 would be next.
SNAP (SNAP)
Snap is getting hit hard; the company sees third quarter Daily Active Users in a range of 242 to 244 million, basically 243 million at the mid-point. That is shy of estimates for 244.8 million. There could be the making of a head and shoulders pattern there, with a break of $22.50 confirming the pattern. That would be a significant reversal.
Tencent (700 HK)
I don’t know what you’ll be doing tonight, but I know I will be watching 700 HK, Tencent. Yeah, this thing has traced out Amazon’s performance nearly entirely. The stock was up 8% percent last night, and if you want to know where Amazon is going tomorrow, you probably should be watching 700 HK.
A lot of potential double tops out there. Anyway.
Have a good one
-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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