Stocks Are Facing A Potentially Very Volatile Trading Session on June 17

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 17, 2020

STOCKS – AAPL, AMZN, NVDA

MACRO – SPY, 

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S&P 500 (SPY) 

It has been a very volatile overnight session with stocks going from positive to negative, back to positive. The volatility levels in the market seem to have been amplified since the Fed meeting on Wednesday. This could be due to positioning ahead of quad witching on Friday.

As I mentioned last night, there is a downtrend that has formed for now, since the June 9 highs. Meanwhile, there has been a smaller uptrend that has formed off yesterday’s lows. It would suggest that by lunchtime, we will have a perfect idea which way the market will be heading with a break of the downtrend sending the index sharply higher. However, at this point, just given the length of the downtrend, it should serve as the stronger and more powerful trend, suggesting it is more likely the index breaks lower.

Don’t forget we have Jay Powell speaking yet again, to in front of the House.

Apple (AAPL)

Apple’s price target was raised to $390 from $345 at RBC capital. The stock has been getting a series of price target increases in recent days. I’m just wondering if those increases are due to a real improvement fundamentally, or if the higher stock price is driving those increases. Unforatenly, it seems to be very hard to tell, and but my hunch is that the higher stock price is driving the increases. 

Amazon (AMZN)

Amazon saw its price target raised to $3,200 at Needham, with the potential for shares to lift to 4,500 to 5,000 long-term.  The stock has surely been hot, but the one thing that always seems to be an issue is whether this a revenue growth or earnings growth story. It matters because the difference in valuation is vast. For now, it continues to be a revenue growth story. 

Nvidia (NVDA)

Nvidia has really done nothing these past few weeks, But the uptrend on the RSI is broken, and it is even moving lower. It would indicate that the stock heads lower from its current price. Potentially to $317. 

 

Have a good one. 

-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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