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July 10, 2020
STOCKS – BYND, BA, BABA
MACRO – SPY, QQQ
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- Afternoon Repo To Determine Direction- Midday
- Downwards Trends Remain
- Markets Setting Up For 5-6% Dip
- Downwards Trends Remain
- Nvidia Is Priced For Perfection, May Have Topped Out?
- Stocks Trying To Breakout Ahead Of Data
Stocks are pointing to a slightly lower opening on July 10, but it’s the 10-year yield that is what should be on watch. The yield is 57 bps this morning and its lowest level since mid-April. It is just a couple of basis points away from support at 55 bps. A drop below that level sets up a much steeper decline potentially to the lows last seen in March.
Oil
Meanwhile, the gap in oil has closed around $42 and is now at risk of turning lower, potentially back to $34.
S&P 500 (SPY)
Meanwhile, the S&P 500 futures continue to find support at 3,115, so as long as that level holds, the bulls have a shot of a rally. However, a break below that 3,115 support likely opens up a further decline to 3080.
Nasdaq (QQQ)
Meanwhile, the Qs are still in the danger zone at the upper end of the trading channel. Again, as it has been the correct view the prior five times, when the Qs reached this end of the channel, there is a sharp drop back to the lower end of the channel. To this point, there is nothing to suggest this time is different.
Beyond Meat (BYND)
Beyond Meat was initiated with a sell rating at Citi and a price target of $123. The stock has support at $136 and the potential to fall to around $124.
Alibaba (BABA)
Alibaba has gone vertical on the big rally over in China, and the stock is getting stretched at this point and overbought. There is a good chance it consolidates lower to $230.
Boeing (BA)
Boeing is approaching support at $165 and is nearing a potential further break down to $127.
Have a great 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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