June 3 May Be One Of The More Interesting Days of 2020
It is a big day for data, and it could be very telling in which way the stock market is going.

June 3 May Be One Of The More Interesting Days of 2020

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.

Otherwise, enjoy the column!

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June 3, 2020

Stocks – ZM, MCHP, AMZN

Macro – SPY, EWG, EWY

An interview I did with Seeking Alpha Yesterday


Well, here we are, with the most significant data points to come starting today and the rest of the week. I know, data doesn’t matter, fundamentals don’t matter, it is all about liquidity. Perhaps. Anyway, as a reminder, ADP jobs data comes at 8:15, and the ISM non-manufacturing reading comes at 10 am. 


The KOSPI was up big last night, and now the index is overbought with an RSI of 77, a pretty high level for an index. You have to go back to November 2017. It also happened to fill a giant gap that goes back to February 21. So, we will have to see what happens next here, but clearly, the likelihood of a pullback is climbing. 

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The Nikkei also jumped, and its RSI hit 76, and what appears to be an “evening star,” perhaps a reversal pattern. Well, see, clearly, an overextended index too. 

The DAX also has an overbought RSI reaching of about 71. 


S&P 500 (SPY)

The S&P 500 is also very close to being overbought, so we can watch that today and see how the market responds to the data. Not sure that it will matter, for now, resistance remains in that 3080 to 3115 region. 


Amazon (AMZN)

Amazon plans to host a big sales event at the end of June, to “jump-start sales.” Sounds strange to you? It seems odd to me. I didn’t realize they needed to jump-start sales? Not sure what kind of message it sends. The stock has been consolidating since the middle of April, with RSI just grinding lower. Generally, that is bearish and would suggest the stocks falls. Support remains at $2285. 


Zoom (ZM)

I really can’t think of a more critical stock to watch today to get a feel for the mood of the market. Zoom reported powerful results and gave excellent guidance. This morning it has gotten a lot of price target bumps, but shares are up just 1.4%. It has been one of the most significant momentum stocks. A move lower today, I would take as a negative view, not only on ZM, but on the momentum trade. 

zoom, zm

Microchip (MCHP)

Microchip is jumping after raising guidance for the quarter. Micron did this and hasn’t seen its stock rise much since. Microchip is jumping today, so it will be interesting to see if the gains last.

Good Luck Today, It should be interesting. 


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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