Stocks Are Falling Sharply On January 3 As Geopolitical Tensions Rise

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 3, 2019

Stocks: TSLA, AAPL, SQ, BA, BABA

MACRO – SPY, GLD, OIL

US Market

  • S&P 500 Futures -45.75 points
  • Oil +$63.82 +4.3%
  • VIX 15.71 +3.24
  • 10-Year 1.81%
  • Dollar Index 97.07

International Markets

  • Japan – Closed
  • SK +0.06%
  • China -0.05%
  • HK -0.32%
  • Germany -1.87%
  • UK -0.66%

Michael Kramer and the clients of Mott Capital own TSLA and AAPL

**ISM Manufacturing Index at 10 AM Estimates 49.1**

Stocks are pointing to a sharply lower opening today on headlines of rising geopolitical tensions between the US and Iran. This is most certainly not an area of expertise for me, so it is unclear to me what happens down the road.

However, what I do know is that the markets were already in a severely overbought condition. Therefore, it wasn’t going to take much for some of that froth to come off the top. Could the S&P 500 fall back to 3,200, yes. Could it fall to 3,150, yeah. It should be welcomed; It helps to avoid a wholly overheated market from getting out of hand. 

At this point, the S&P futures are pointing to a lower opening, basically erasing yesterday’s gains. 3,200 is the significant level of support, followed by 3,180, then 3,150.

S&P 500, spy

Oil 

Oil had been knocking on the door of a breakout, and so it finally broke out on the news. Could it rise to $67? It seems like the next level of resistance to watch out for.

Oil

Gold (GLD) 

Gold is also moving higher and is nearing a big level of resistance at $1,555. Again, this is something we have been looking for, for more than a week, so no surprise here. From December 26 – Copper And Gold May Be Breaking Out

gold

Tesla (TSLA) 

Tesla shares are falling this morning after the company announced it would cut the price of its Made In China Model 3’s. The company is also likely to announce it’s delivery and production numbers for the fourth quarter this morning. Support for the stock comes around $423, then $410, and $390. 

tesla, tsla

Square (SQ) 

Square is falling some today, but support doesn’t come until around $60.50, and I’m not sure that there is reason to change my view on Square, as I noted yesterday. I think the stock works higher over time. Square May Rise On Bullish Betting

square, sq

Apple (AAPL) 

Apple is falling this morning, but there should be some reliable support around $291.

apple, aapl

Boeing (BA) 

Boeing is falling today, and one has to be careful to watch the $320 region. This could be a breaking point for the stock should $320 crack. $297 comes after $320.

boeing, ba

Alibaba (BABA) 

Alibaba is falling some, and support for this one comes around $211.

alibaba, baba

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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