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STOCKS – XOM, CVX, CSCO
MACRO – SPY, DOLLAR
Mike Reading The Markets Premium Content – $35/Month or $300/Year
- Mixed Signals – Midday
- There Is A Lot Of Froth In Over Heating Market – Morning
- Exxon’s Recent Surge May Fade Fast
- Setting Up For A Sizable Pullback Short-Term – Midday
- Its All About The Fed This Week
- Earnings Trends For 6.6.20
Stocks have been bouncing around overnight, with the futures up and now down. Meanwhile, shares in Europe are all down slightly. But none of this matters at the moment because everything is likely to change later today after the FOMC meeting.
Again, I don’t envy Jay Powell, as he has an incredibly tough job, and his day will not be easy. He has come a long way since that December 2018 meeting that saw the market meltdown during his press conference. I’m not suggesting the same happens today, because I have no clue, but what he has to say is very important. Also, what will be important are those dot plots, and what the Fed sees for the rate of recovery for the US economy.
Remember, this is a quarterly meeting, so there are a few extra details that will come out today, that we usually don’t get. So will the Fed project a “V,” “U,” “L,” or “checkmark” recovery?
Watch the Yen. It tells a story.
S&P 500 (SPY)
S&P 500 futures stalled out for the second day in a row around 3230. Keep an eye on support at 3,190; if it breaks, it forms a short-term double top that could result in a decline to 3120.
DAX
The German DAX is also at an important support level at 12,400.
Dollar
The dollar continues to decline and is sitting on support at 96. That is a significant level.
Cisco (CSCO)
Cisco was downgraded to Neutral from Outperform at Baird; the firm keeps a $48 price target. The stock has recovered nicely, but it does find some strong resistance that appears to be reasonably healthy around $48.25, with potential room to rise to $50.25, and a gap fill.
Exxon (XOM)
Exxon is falling today, along with the price of oil. I noted the other day some bearish options betting in this one, with the potential to fall back to around $50, and even as low as $48. Premium content – Exxon’s Recent Surge May Fade Fast
Chevron (CVX)
Chevron doesn’t appear to be all that different with support around $87.50.
Anyway, that’s all for today. I have to get out early today.
-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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