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DECEMBER 26, 2019
STOCKS: AAPL, C, NFLX, SNAP, AMZN
MACRO: SPY
MICHAEL KRAMER AND THE CLIENTS OF MOTT CAPITAL OWN NFLX, AAPL
Premium Content : Copper And Gold May Be Breaking Out
S&P 500 (SPY)
Stocks continue to march higher with no end in sight. By many indications, the market is getting extraordinarily overbought, and it worries me for what will come once it decides to turn lower.
However, here is a new thought. If we are entering a period like I think we are beginning, which is the eventual rise to around 3,600 on the S&P 500, the path the market is likely to take becomes more linear, and that means pullbacks, and the sharp, and violent moves of the past will dissipate. It means pullbacks will be short-lived and in the 2-3% range, and not in the 8-10% range. It will be something that resembles 2017, with no 10% correction, or perhaps a period like 2012 to 2015.
When looking at the chart, it seems apparent that the S&P 500 has only one thing in mind, and that is to rise to 3,400.
It also means that the number of stock trading above their 50 and 200 day moving averages will remain more elevated as well, where they peak around 88 to 90%. What it means is that the market may still have much further to rise and that a pullback may merely not becoming.
It means that the rally may simply carry into the start of 2020.
Apple (AAPL)
Apple is up to $291, and I have no idea what happens now. I love the fact that the stock is going up, but it is not easy figuring out where it goes next. Based on the prior patterns, it would seem that Apple is due to consolidate now around this $291 region, meaning trade sideways.
Citigroup (C)
Citigroup appears to be heading towards $81.
Amazon (AMZN)
Amazon rose sharply today, and that bullish option betting I saw a few weeks back appears to have been the correct bet. I wrote this on December 9 when the shares were $1750 – Amazon Is Seeing Bullish Betting, Suggesting 7% Increase
Netflix (NFLX)
Netflix has been consolidating around $336, and now it may be getting ready to make that push to $362.
Snap (SNAP)
SNAP also had a good day rising above resistance at $15.50, and now the stock could be on a path to $16.75.
Have a good one, probably nothing in the morning. I’m taking it easy this week, getting ready for 2020.
-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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