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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JANUARY 21, 2020
Stocks: TSM, MU, INTC, FCX, JD
Macro: SPY, EWH, COPPER
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Stocks are trading lower on January 21, with the S&P 500 futures falling by around 13 points of 40 basis points. It follows what has been a weak overnight session in both Asia and Europe, following a Moody’s downgrade of Hong Kong, and the IMF downgrading global growth.
Hong Kong (EWH)
Hong Kong’s market fell by over almost 3% last night, to near a level of support at 27,950.
S&P 500
Meanwhile, the S&P 500 futures are trading lower, but more important is that the futures are now trading through the rising wedge I have been talking about for days. Currently, the index is managing to hold on to support at roughly 3,310. The next meaningful level of support comes around 3,295 on the futures.
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Intel (INTC)
Intel was upgraded this morning to hold from an underperform with a $64 price target at Jefferies today. The company will report results on Thursday. Again, this one that I have thought would rise following results based on some bullish betting, and I have also been looking for the stock to rise to around $64.
JD (JD)
JD.com is falling following the overnight weakness in Asia. A drop below $37.10 sets up a further decline to around $38.40 and then $37.20.
Micron (MU)
Micron is down just a bit, but again this stock ahs been consolidation in the $55.60, and it needs to hold that support level to avoid a further decline towards $52.75.
Taiwan Semi (TSM)
Taiwan Semi has failed at resistance on two occasions around $60.70, and now the uptrend is breaking. It sets up the potential for the stock to fall back to $54.40.
Freeport (FCX)
Freeport McMoran is moving lower and is in danger of falling apart here. Certainly not was I was looking for last week when I saw some bullish option betting. We need to be on watch for a further decline to technical support at $12.30 and then $12.
Copper
Part of the reason for the weakness is because copper prices after appearing to have finally breaking resistance are giving back some today.
Have a good day!
-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.