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January 22, 2020
Stocks – NFLX, TSLA, JD, MU, BA
Macro – SPY
MICHAEL KRAMER AND THE CLIENTS OF MOTT CAPITAL OWN NFLX AND TSLA
Stocks are gapping higher once again, following what was a robust overnight session in Asia. Interestingly, Europe is not having a great trading session, with markets essential flat in Germany and the UK.
S&P 500 (SPY)
Perhaps my crystal is fuzzy, I’m not sure, but recently, I feel more confused by the markets than at points in the past. Maybe it is because of instincts suggests that the market is overextended and needs to cool. However, it has been incredibly resilient. Again, it isn’t that I expect some massive correction, 2 to 3% would suffice.
Anyway, resistance for the S&P futures likely comes around 3,364, and support is 3,310. My one thought of intelligence today, as it says when you get on the train, mind the gap.
Netflix (NFLX)
Netflix is up this morning and trading at $345. If the stock can hold these gains, it would be a big positive. But as we know, the $340 region has been incredibly difficult for the equity. So, what I find most ironic about Netflix is how they host their conference call on YouTube. Lol. Hey, I happen to own both companies, but I find it strange. Shows you how much Netflix views YouTube as a competitor, which it isn’t.
Anyway, I continue to think the stock works its way towards $360; my view hasn’t changed. I also think the results show that the company is on the right path regardless of competition.
JD.com (JD)
Yesterday I had a slight typo in my write-up saying a drop below $37.10 would send the stock lower to $38.40. Well, that makes no sense, and I meant to say $39.10. The good news is that the stock held support yesterday at $39.10. Today, it is bouncing higher and is rising above resistance at $40.15, and I think it could be on its way to $42.85.
Micron (MU)
Micron is starting to break away from resistance at $58.65 and appears t could be heading higher towards $61.40.
Tesla (TSLA)
Tesla is rising after Wedbush raised its price to target to $550, with a bull case scenario of $900. If I had to throw a dart at a board, I’d say that $600 is the next level of resistance to watch for.
Boeing (BA)
Boeing is below $317, and that has been a significant level support for the stock, and I think it is problematic for the stock. That region is now likely to act as a healthy level of resistance for the stock.
Have a fun one!
-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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