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October 7, 2020
STOCKS – AAPL, AMZN, INTC
Macro – SPY, QQQ
Mike’s Reading The Markets (RTM) Premium Content – NOW WITH A 2 WEEK FREE TRIAL
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MICHAEL KRAMER AND THE CLIENTS OF MOTT CAPITAL OWN AAPL
S&P 500 (SPY)
Stocks were higher today, with the S&P 500 finishing up about 80 basis points to close at 3,446. The market managed to gap higher above the 3,425 level, advancing to 3,445. It’s an essential level of resistance. It’s the Fibonacci 61.8% retracement level from the September 2 highs to the September 24 lows. It could be one reason why we were kind there all day and were unable to advance.
The market is in an interesting spot because it is trying to break out of a trading range. However, we really need to see a strong follow-through on Friday, October 9, to confirm that we are breaking out and likely to head higher back to the 3,560 level.
At this point, I don’t have enough evidence to support that notion. However, if we have a higher day again tomorrow, we can begin to look for higher prices.
Nasdaq 100 (QQQ)
The Nasdaq 100 ETF QQQ wasn’t as successful today; it actually finished the day right below technical resistance at $282. This is a crucial level of resistance that dates back to September 9. It was almost the equivalent of the resistance level in the S&P 500 at 3,425.
However, if the Qs cannot penetrate that $282 level, it would leave the question open as to whether or not the S&P 500 actually broke out today. It could just as quickly turn out to be a failed breakout when we start trading tomorrow.
Apple (AAPL)
It wasn’t a great day for Apple with the shares trading sideways, and finishing the day lower by 10bps. The stock is just stuck at resistance, and it is hard to imagine the market moving significantly higher without Apple. I just don’t see Apple breaking out yet. Not based on what I have seen in recent days.
Amazon (AMZN)
Amazon didn’t rally today either. Again, it is going to be hard for the market to rally much without Amazon also.
Intel (INTC)
Intel is starting to break out and is now moving beyond resistance at $52.20. The RSI is picking up momentum, which means the stock is likely heading back to $56, with the potential for a gap fill at $60.
Night
-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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