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July 30, 2020
Stocks – MU, GE, DIS
Macro – SPY, QQQ, IEF, COPPER
Mike’s Reading The Markets (RTM) Premium Content – $35/Month or $300/Year
- Fed Paints A Gloomy Outlook
- Bets Pile Up Micron Falls As Much As 10%
- It All About The Fed, And Bets Are For Less Liquidity
- Downward Trend Are Still In Place
- Stock A Bit Weaker – Morning Commentary
- Recent Move Lower Likely To Continue- Midday
- S&P 500 Put Buyers + Dollar’s Gloomy Message
Stocks are pointing lower today, with the S&P 500 futures lower by more than 1%. Meanwhile, Germany is falling by about 2%, along with weakness across most of Asia, which gave back earlier gains.
There will be a lot of important economic data this morning with the big second-quarter GDP print, and initial claims. Estimates for GDP are a decline of 35% annualized, while initial claims are forecast at 1.388 million. Germany saw its second-quarter GDP decline by 10.1% versus last quarter, which was worse than estimates for a 9% drop. Additionally, the unemployment rate came in better at 6.4% versus forecasts for 6.5%.
S&P 500 (SPY)
The significant critical level to watch in the S&P 500 is around 3,200, which gives the index plenty of room, currently trading at 3,220.
NASDAQ (QQQ)
The NASDAQ futures are in a tighter spot, with very little room to spare. Should the futures fall below 10,400, the Nasdaq would have successfully broken the uptrend, and that is likely to trigger much more selling.
10-Year
The 10-year yield is falling to 55 basis points, and that is a technical level as it has served as support multiple times. I fear breaking this level sends yields sharply lower.
Copper
Copper prices are essential too, and as long as we stay above $2.87, we should be ok, but a break of $2.87, opens the selling flood gates, and that is bad for the risk-on sentiment.
Micron (MU)
Micron is sitting on support today around $49.80 with a break of that trigger the stock can decline to $45.50. (Mike’s premium content – Bets Pile Up Micron Falls As Much As 10%)
Disney (DIS)
Disney is very close to falling below support at $114.60, which would trigger a decline to around $109.
Boeing (BA)
Boeing is again testing support around $165, with a break of that support level resulting in a decline to $154.
-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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