This column is my opinion and expresses my views. Those views can change at a moments notice when the market changes. I am not right all the time and I do not expect to be. I disclose all my positions clearly listed on the page, and I do not trade my account on the stocks spoken of in this column unless fully disclosed. If that does not work for you stop reading and close the page. Do not bother me or harass me.
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Michael Kramer and clients of Mott Capital own Tesla and Microsoft
Michael Kramer owns IWM Calls
April 24, 2019
- S&P 500 Futures +1
- US 10-Year 2.54%
- Dollar Index 97.65
- Oil $66.11
- VIX 12.33
- Japan Nikkei -0.27%
- China Shanghai +0.09%
- Hong Kong HSI -0.53%
- South Korea Kospi -0.88%
- Germany Dax +0.73%
- UK FTSE -0.27%
S&P 500 (SPY)
The stock market will try to rise on April 24 picking up where it left off. The chart continues to suggest more gains are on the way. Even when looking at the RSI we can see the ascending triangle pattern, which suggests more gains ahead. With the RSI now around 72, it is “technically” overbought, but it is at the same level it peaked at in October. So we will want to see it rise a bit more to make sure that the RSI has fully broken free of that old downtrend if that makes sense. It would also suggest that current push higher is somewhat limited to how much upside there is over the short-term.
The Russell is also nearing a big break out, which could send the index to 1,640. We can see how the RSI has compressed and fallen since reaching overbought levels.
AT&T reported results this morning at first blush they don’t look particularly good. But what seems bad are those DirecTV and DirecTV Now subscriber numbers, ouch! 19.2 million DTV subs down from 19.6 in 4Q. Also, DTVNow down to 1.5 million from 1.6. Geez. DirecTV is to AT&T, what ESPN was to Disney. Not the outcome I thought we would see.
It is early, but the stock needs to hold support at $31.20.
Amazon will be on watch today, one day ahead of results. The stock broke out yesterday rising above resistance at 1,900. The next significant level to watch for is 2,025.
Microsoft will report tonight, and $127.25 is still resistance.
Facebook will also report results tonight, $186 is the next level of resistance, but a beat likely moves it towards $195.
Biogen shares are rising this morning after posting better than expected results. Talk about left for dead. The biotech sector needs Biogen to come back to life. For now, $245 is resistance; it looks like we may see movement in that direction.
SNAP is rising today, but I’m not sure what people see here. There DAU’s are horrible, 190 million, down from 191 million last year? I don’t know. I must be missing something because the stock is rising. $13.16 is resistance.
Tesla reports tonight, and I really can’t think of a bigger earnings report for them. It was revealed yesterday that Model S and X got a big range boost. I think this would be a real confidence booster if we found out buyers were waiting for these enhancements. The Model S range is now 370 miles!
The chart shows this the region where the stock tends to bounce, and I still think we see the stock trading over $300. Tesla May Rise Following Results
Boeing pulled its full-year guidance today, and I think it makes it harder now to value this. $363 is at support, and I’d be fearful that it doesn’t hold.
That is it
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