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MARCH 19, 2021
STOCKS – AAPL, WFC
MACRO – SPY, VIX
Mike’s Reading The Markets (RTM) Premium Content – FREE 2-WEEK TRIAL
- LIVE STREAM WILL START AT 1 PM ET
- Apple’s Recent Decline Isn’t Over Just Yet
- Morning Note: Expect A Wild One
- Live Stream On 3.19.21 1 PM ET
- MIDDAY – Volatility Is Going To Pick Up In A Big Way
- Morning Notes: Rates Are Only Beginning To Climb
- FOMC: Uber Dovishness From Fed Likely To Drive Rates Even Higher
- Midday Note – It’s Show Time
- Morning Note: The Question Isn’t What Powell Will Do, But Who He Fears The Most
- Midday: Massive Options Bets Suggest Volatility On The Way
MICHAEL KRAMER AND THE CLIENTS OF MOTT CAPITAL OWN AAPL
It was actually a rather boring day, with the S&P 500 range-bound for most of it. The S&P 500 fell by around 6 bps to close at 3,913. The pattern isn’t that strong overall and is actually very concerning looking. There is a potential for a double top pattern forming, with a decline below 3,725, confirming it. It is clearly still far away, but markets can move fast. Additionally, the RSI is starting to show serious signs of deterioration.
VIX (VIX)
The VIX managed to close over 21 today, so my 20 being the low end of the range and 3,950-3,960 being the upper end of the S&P 500 continues to remain in play. It wasn’t pleasant at times this week, but that’s just how it goes.
Apple (AAPL)
Apple finished the day lower and below $120. I’m concerned the stock has further to fall. It has been very weak, and its valuation is not favorable in this higher rate environment. There was a notable bearish bet placed in the stock that I picked up on today. I still think that $110 is possible, but the first stop is likely at $116.(Reading The Markets premium content – 1st 2-Weeks Free Apple’s Recent Decline Isn’t Over Just Yet)
Wells Fargo (WFC)
I noted today that I thought Wells Fargo could be heading lower from here for a period of time. The stock has had such a big run, it likely needs a pause, and $33.60 seems like a reasonable place to settle. (Should be free to read- Wells Fargo’s Bull Run May Be Over)
It’s Friday more over the weekend!
-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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