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July 1, 2020
STOCKS – MU, AMZN, AMD, ZM
MACRO – SPY, SMH
Mike Reading The Markets Premium Content – $35/Month or $300/Year
- Testing Resistance/Reducing Tesla -Midday
- Waiting For More Data – Morning
- Gap Filled, Resume The Previous Trend?
- The Rest Of The Week Could Be Tough
- The Fed’s Falling Balance Sheet Could Spell Trouble
- RISK IS BUILDING- MIDDAY
- Facebook Is The Key Today’s Market – Morning
- THE WEEK OF JUNE 29 WILL BE CHALLENGING
MICHAEL KRAMER AND THE CLIENTS OF MOTT CAPITAL OWN AAPL
It looked like the bulls would run away with today, and I’m not sure what happened in the last 10 minutes, but the market gave back a significant portion of its gains. It was as if all the buyers vanished, the short-covering was done, or the guys that took the repo money from the Fed who spiked the S&P from 2 PM until 3:50 had no one to sell their buying spree to. No matter how you slice and dice it, the buyer vanished. It resulted in the S&P 500, moving down 50bps in a straight line in the final minutes.
We closed at 3,115, which was a significant level all day, and a battleground. It makes tomorrow perhaps the most important day of the third quarter. If the market breaks out, it will be set up for a nice run higher. If the market fails, it probably takes a trip back to 3,000 and lower. It may be that easy at this point. To push the drama to another level, we get the jobs data tomorrow.
If that weren’t enough, Apple is closing more stores, and no late tonight McDonald’s is putting reopening plans on hold. There will be more to follow.
This market is in a dangerous spot. Like February, the market didn’t care. Coronavirus cases were rising; it didn’t care. Apple cut its guidance; it didn’t care. Then all of a sudden, it cared and in a meaningful way. None of what is taking place right now is good for anyone.
At some point, if the reopening stalls, it doesn’t matter what business line you are in, at home, cloud, or retail, if you have fewer customers, your sales aren’t going to take a hit. At some point, the market will care, and it will care in a big way.
So my 2-cents makes sure you understand what you own, why you own it, and how much pain you are willing to take should things go south.
Oh, tomorrow is the final day of the week. We get a nice loooooooooong weekend!
Semis (SMH)
The Semis did not have a good day, and there is an issue at the $154 level in the SMH. The weakness comes in the face of Micron and Xilinx, which both gave positive outlooks this week. Strange!
Micron (MU)
I guess technicals work even for earnings. Notice how Micron rose to resistance and failed at $52.75 as it should, and is now trading back down to $49.80. I still think this one goes back to $45.50.
Amazon (AMZN)
It looks like Amazon in the final phases of this advance. Well, see…
Zoom (ZM)
Zoom rose today, retesting its breakdown from the rising wedge.
AMD (AMD)
AMD is not looking particularly strong here. The RSI suggests the downdraft isn’t over yet.
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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