Monthly Inflow Day Disappoints on May 3, As Stocks Are Little Changed

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!

Subscribe to the Monster Stock Market Commentary and join the 2,400 subscribers getting it for FREE every day!

May 3, 2021

STOCKS – AMZN, MU, AMD, FCX

MACRO – SPY, QQQ

Mike’s Reading The Markets (RTM) Premium Content – FREE 2-WEEK TRIAL

Stocks finished the day, mostly mixed with the growth to value trade back on. The S&P 500 finished the day higher by around 25 bps, while the NASDAQ 100 finished the day lower by 50 bps.

S&P 500 (SPY)

The S&P 500 did start the day jumping to around 4,210 and filling the gap created on Friday morning. With the uptrend broken and confirmed, we should start to see a move lower from here. The key level will be at 4,180; once that breaks, there could be quite a distance to fall.

Nasdaq (QQQ)

The Qs appear to be worse off than the S&P 500, while the ETF approaches a significant level of support at $334. A break of support at $334 would trigger a further drop, as it would confirm a short-term double top.

Amazon (AMZN)

Amazon was down another 2.7% today, despite reporting robust results last week. I guess someone had a good call on Amazon. I think it is likely to find some support around the $3360 level.

Micron (MU)

Micron fell today and is very close to falling below support and the uptrend around $85.50. If that happens, it is likely to head towards $74. The RSI suggests that support breaks and the decline continues.

AMD (AMD)

It looks like the breakout in AMD ahead of earnings was a head fake, with a move back to $73 probably on the way.

Freeport (FCX)

Meanwhile, with copper continuing to rise, Freeport should likely continue to rise with it. The next level of resistance is likely at $43, last seen in the fall of 2012.

-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.