January 3, 2019
Stocks: TSLA, AAPL, SQ, BA, BABA
MACRO – SPY, GLD, OIL
- 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
- 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.
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 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 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.
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 is falling this morning, but there should be some reliable support around $291.
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 is falling some, and support for this one comes around $211.
Have a good one