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JANUARY 30, 2020
Stocks: FB, AMD, SHOP, WDC, SBUX
Macro – SPY, OilÂ
Stocks are pointing to a lower open on concerns of the coronavirus again. All of the major indexes were down in Asia with the Nikkei and Kospi down around 1.7%, while HK fell 2.6%. Meanwhile, Europe is lower as well.
S&P 500 (SPY)
S&P 500 futures are down about 20 points back to around 3251. At this point, it feels as if maybe a retest of the declines on Monday, so this could be considered a significant level to watch for the markets. A further drop below 3230 on the futures could lead to a sharper decline, perhaps to around 3,200. Again, we don’t want to see the index close at these levels because it would allow the index to finish below the trend line.
OilÂ
Oil finds itself in a terrible spot, sitting on support around $52, with a break of this price level could send the commodity lower to $42.
Facebook (FB)
Facebook is getting crushed today, falling by 7.5% to $206. This is an essential region of support for Facebook. Support for the stock is around $203, and a decline below $203 likely gets the stock moving lower to about $191.
Starbucks (SBUX)
Starbucks is falling as it should since a significant portion of Starbuck’s growth story is based on China. The stock has found some support around $85.75, with the next level of support around $83.50.
AMD (AMD)
AMD is testing support again around $46.80, and this is an essential level for the stock to hold. If not, the stock is probably heading even lower to $43. Not what I was expecting.
Shop (SHOP)
Shop failed for a third time at $477; meanwhile, volume levels are starting to decline, signaling that buyers may be thinning out. However, the trendline is moving higher, so I’m going to say support for the stock now comes around $425 to $435 region.
Western Digital (WDC)Â
Western Digital report results this afternoon, and the stock has been holding on to support around $65.75. Remember, we were seeing the call buying for the March 20 expiration date at the $75 strike price. So we will find out if these options traders are just as good as the Intel, Square, and GE traders, or if they resemble the Facebook and AMD crowd. Free story –Â Western Digital Is Nearing A Significant Break-Out
Have a good one
-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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