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Micron, Tesla, Square, Intel, Oil, Rates, S&P 500
MICHAEL KRAMER AND THE CLIENTS OF MOTT CAPITAL OWN SHARES OF TSLA AND NXPI
Well, it was unusual for sure. But more so because I went to sleep last night thinking the NXP/Qualcomm deal was finally done, only to wake up and find out it was not. Ugh!
The trade war nonsense is just that, nonsense. $50 billion here, $50 billion there. The government throws around $50 billion like its toilet paper. To be honest, it is mostly a rounding error in our economy of $20,000,000,000,000. Could there be a multiplier effect, of 1 or 2, or 3 times, sure. But now we are talking about $150 billion, out of $20 trillion. Anyway, the market shrugged it off, testing support around 2,760, bouncing right off of it.
How about those rates! The 10-year even dipped below 2.9 percent briefly today. That pattern in the chart is still looking bearish to me. But what do I know? I was insane when I said rates were going to 3 percent, back on December 18.
Oil got crushed today as well, falling back to around $64.50, the problem now is that technical uptrend is broken, and it means Oil is heading back to $61, and maybe even lower. (See: Oil and Yield’s Rise May Soon Fade, Sparking The S&P 500 Rise To 3000)
I’ll tell you I’m annoyed with myself on Square; I said the stock was going lower. Then the very next day I saw some convincing call buying and realized at that moment, I might have been wrong. Sure enough, I was, and the stock has done nothing but go up since hitting $62. But it may have also been a case of me being early which I am quite a bit, because the stock has still failed to rise above that resistance trend line.
Tesla is sitting at a significant technical level, and I suspect the short-sellers will mount an offensive here because if Tesla rises above $363, I think the next stop will be $385. They did an excellent job of doing that today. BTW, driving around town today, I saw two Model 3’s, and they look amazing. I see one every one to two days at this point.
Intel is still struggling and what had been support has turned resistance along that uptrend, and Intel looks to still be heading lower.
Micron went from being unstoppable to a stock that does not look strong going to into results. I’ll have a preview piece later this weekend on Micron. The uptrend, like for Intel, has become resistance for Micron, and we can see the stock has not been able to get back above $61.40. We could be looking at $54 at some point next week.
That is gonna be all for a Friday afternoon in the summer. Is it the summer, yet? I guess officially no. It sounded good anyway.
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.