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June 24, 2020
STOCKS – MU, UBER, T, GE
MACRO – SPY, QQQ,
Mike Reading The Markets Premium Content – $35/Month or $300/Year
- One Day Hit Or Much More To Come?
- Betting On A 10% Drop In AT&T
- Tough Resistance At 3100 – Morning Commentary
- Nasdaq 100 May See A Sharp Reversal Short-Term
- Betting Indicates Facebook Falls
- The New Week Faces Headwinds – Morning
- Spiking Coronavirus Cases, What It Means – The Week Ahead
Stocks fell on June 24 by about 2.6% on the S&P 500 to finish the day around 3,050. Most of the losses came early in the session with some decent stabilization in the afternoon. The index attempted to rally into the close, but there was a nearly $4 billion sell imbalance, that crushed whatever momentum was forming, sending the index lower. But we knew this coming yesterday. Premium content – Nasdaq 100 May See A Sharp Reversal Short-Term
The S&P 500 tried to rally above 3065 on three occasions today and failed each time. Not the best sign that this was a one day hit.
The bigger problem was the trading action on the S&P e-minis because they failed at resistance about five times today. Not the greatest of signs, and could be indicating that today’s decline could continue to work its way lower, with the next significant level of support not coming until 3000. I talked about why 3050 was acting as resistance today in the midday update. Premium content –One Day Hit Or Much More To Come?
NASDAQ 100 (QQQ)
But the action in the Qs may give us the best indication of what happens next. As talked about yesterday, the ETF hit the upper end of the trading channel, and today it fell, as we expected. The question that tells us a lot about the future will be what happens when it should arrive at that lower channel trend line around $240. If it holds and bounces, the sell-off is likely over. Should we fall through it and close below that trend line, the sell-off has only first begun.
Micron (MU)
Micron is now teetering on a minor uptrend and has fallen through resistance at $49.80. The potential for that drop to $45.50 is rising.
AT&T (T)
AT&T fell sharply today, and there was ALOT of bearish betting in this on the open interest levels today. A break of $28.90 sets up a decline to $27.35. Premium content – Betting On A 10% Drop In AT&T
Uber (UBER)
Uber got walloped today, and I think this business model struggles in this new coronavirus world. Eats won’t be enough for them. I first noted bearish betting in the stock on June 15, and I still think it falls to around $28.30 Premium content- Uber May See A Steep Decline.
GE (GE)
Finally, if GE manages to fall below $6.50, there is a pretty good chance, it goes back to $5.50.
That will be all
-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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