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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.Â
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.
OilÂ
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.
Gold (GLD)Â
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
Tesla (TSLA)Â
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.Â
Square (SQ)Â
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
Apple (AAPL)Â
Apple is falling this morning, but there should be some reliable support around $291.
Boeing (BA)Â
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.
Alibaba (BABA)Â
Alibaba is falling some, and support for this one comes around $211.
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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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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