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DECEMBER 24, 2019
STOCKS: TSLA, AMD, UBER, SBUX, MU
MACRO: SPY
MICHAEL KRAMER AND THE CLIENTS OF MOTT CAPITAL OWN TSLA
It was an uneventful day on December 24, most certainly not like the one last year. I went back and read my blog post from that day, and times have changed, and the markets appear to be in precisely the opposite position.
S&P 500 (SPY)
But that doesn’t mean we will continue to rise in a straight line, and signs are forming, which suggests we could be ready to see a minor pullback of perhaps 2% over the final four days of the year.
The RSI on the S&P 500 is overbought at 75.5 again, and that number needs to come down some. Based on the trends in the RSI, I would think back to around 60.
200-Day Moving Average
Meanwhile, the number of stocks in the S&P 500 trading above their 200-day moving average is at 81%, and that is the highest it has been since January 2018. Another sign of how far this market has come over a short period.
Additionally, the prior times the level got this high was in late August 2016 and March 2017. Both periods saw declines of about 3-5% that followed.
It suggest a pullback to around 3,175 to 3,200
Tesla (TSLA)
Tesla continues to rise, and at this point, logic would suggest the stock is getting overbought. But with Tesla, nothing is easy, and deciding if the stock can rise further is not easy. There have been no “leaked” emails yet about production and deliveries, either to consider.
The stock did something similar starting in December 2016 into June 201717. I have to think further on what happens from here regarding Tesla. I’m just not sure at this point.
AMD (AMD)
AMD also got up to our target of $46.80. This is also a stock that is due to pull back now, maybe back to $43. We can see the RSI failed to make a new, despite the price hitting a new high, a bearish divergence.
Uber (UBER)
It appears Uber may be setting up to take it’s next leg up to $33.13.
Starbucks (SBUX)
Starbucks appears to be getting ready to move higher towards $91.35
Micron (MU)
I noted today in a free article why Micron may be heading to around $58. Micron’s Stock Is Far From Peaking
Enjoy the time off and Happy Holidays!
-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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