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STOCKS – CMG, RBLX
MACRO – SPY, TIP, QQQ
- RTM: CPI – The Main Event [Daily Update]
- RTM: Not Even Close To A Bottom Yet
- RTM: Stocks Tumble Under Weight Of Bad Jobs Report [Daily Update]
- RTM: Replay Live Q&A Session
- Final Notice: Zoom Details For Today’s Q&A Session
- RTM First Look: The Stock Rally May Be Finished
- RTM: Post FOMC Rally Arrives On Schedule [Daily Update]
- RTM: S&P 500 4300 Key Resistance [Pre-FOMC Update]
Michael Kramer and the clients of Mott Capital own RBLX
The S&P 500 up just 25 bps. The index traded as high as 4,070 today, which was a resistance level that held all day, and traded as low as 3,955. It felt like a like consolidation ahead of the CPI report tomorrow. I think there is a good chance we retrace to that 3,955 level at some point tomorrow, liquidity has been thin the sharp vertical Intraday rise appears to an unstable pattern. However, an increase above 4,070 will likely lead to a gap fill at 4,160,I think.
Real Yields (TIP)
What did make a new low was the TIP ETF dropping to $117.19. Real yields continue to rise and typically when the TIP ETF is making new lows, the QQQ ETF isn’t too far behind.
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The chart on Chipotle looks extremely weak, with the shares sitting above support around $1,290. But once support at $1,290 fades away, there is nothing until the $1,180’s, and the RSI has a very negative trend bias. So I think a break of that support at $1,290 would be a warning sign of lower prices.
Roblox reported results, and they missed estimates on earnings and barely missed on bookings, while daily active users came in-line. At least at first glance, they didn’t seem disastrous. Given how much the stock has fallen, one would have thought that DAU’s would have been cut in half. The call tomorrow should clarify a few things, I hope. The chart doesn’t look horrible, actually, with a bullish divergence on the RSI versus the falling price. If the stock can hold these lows, that is a big positive, at least I hope.
Anyway, I will keep it short today with the CPI report tomorrow, we will have to see how things respond.
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. 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.