Stocks Are Dropping Sharply To Start The Day on June 11

This column is my opinion and expresses my views. Those views can change at a moments notice when the market changes. I am not right all the time and I do not expect to be. I disclose all my positions clearly listed on the page, and I do not trade my account on the stocks spoken of in this column unless fully disclosed. If that does not work for you stop reading and close the page. Do not bother me or harass me.

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June 11, 2020

STOCKS – BA, WFC, TWLO, NFLX, XOM

MACRO – SPY, QQQ, RATES

Mike Reading The Markets Premium Content – $35/Month or $300/Year

Don’t forget it is an initial claims day, but more important is that continuing claims number. 

Stocks are falling on June 11, with markets around the world pushing lower. The S&P 500 futures are currently down about 2.1%, certainly nothing major given the huge run-up we have seen, but something that we need to take note of, and certainly think hard about. For now, the S&P 500 is merely back to its June 4 levels. The big trouble doesn’t start until we get below 3080. That is where the market will flip from a positive gamma zone to a negative gamma zone and will result in more volatility and potentially more significant declines. 

es

With options expiration next week, a quadruple witching expiration, we could see volatility pick up should that level be broken. 

NASDAQ 100 (QQQ)

Meanwhile, trouble doesn’t pick up for the NASDAQ until it falls below $240, based on the charts. 

qqq

VIX

The VIX is jumping today to around 30. That has been a significant level for the VIX, and a push above 30 gets things it moving lower in the equity market, with the next significant level of resistance around 40 for the VIX. 

Boeing (BA)

Well, Boeing is dropping sharply today, already down 6%, and I’m not sure if we moved into the year 2000 bust part of the cycle for this stock, but there was no reason for that big move higher, and now a drop below $183 means it goes back to $158. 

Wells Fargo (WFC)

Wells Fargo is down another 5% today and is probably going back to $26; there is no reason for it not too. 

Twilio (TWLO)

Watch out on Twilio a break of $181 means the stock has a lot of room to fall, like a lot. A real lot.

twilio

Netflix (NFLX)

So what I am wondering here if Netflix has a giant head and shoulders pattern in it. The neckline is at $405. 

Exxon Mobil (XOM)

Exxon is falling today and is trading at $48. I guess I can still get things right once in a while. What’s the saying? Even a broken clock is right two times a day. Premium content from June 8 –Exxon’s Recent Surge May Fade Fast

exxon

ok – enjoy

-Mike

Mott Capital Management, LLC is a registered investment adviser. Information presented is for educational purposes only and does not intend to make an offer or solicitation for the sale or purchase of any specific securities, investments, or investment strategies. Investments involve risk and, unless otherwise stated, are not guaranteed. Be sure to first consult with a qualified financial adviser and/or tax professional before implementing any strategy discussed herein. Upon request, the advisor will provide a list of all recommendations made during the past twelve months. Past performance is not indicative of future results.    

 

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