Stocks Are Getting Ready For Another Volatile Trading Session on April 8
The stock market is setting up to have another interesting as the bulls, and the bears continue to battle it out.

Stocks Are Getting Ready For Another Volatile Trading Session on April 8

APRIL 8, 2020

STOCKS – AAPL, WORK, SQ, SBUX

MACRO – SPY, EWG, EWY

MICHAEL KRAMER AND THE CLIENTS OF MOTT CAPITAL OWN AAPL

Stocks are moving lower on April 8 around the globe, and are pointing to a flat opening here in the US. Again, I continue to think the recent rally we had witnessed to start the week was a short-term rally in a longer-term downtrend. It likely means we move lower still and perhaps towards that gap fill area around 2,270. Does it happen over a short-term period? I hope not; I have only built half of the list I want to add to my portfolio. The truth is, we want it to happen slowly. The market has been moving at an ultra-fast pace since October 2019, and these sharp moves higher and lower create these unstable periods of heightened volatility. 

As I have been describing in the premium area, I have been breaking these stock market moves into phases, just like all the economic relief plans. The first phase was a pure shock that the virus was going to have a significant impact on the economy. The more recent rallies off the lows were phase 2, which was the relief rally on a receding virus threat. But we are now transitioning over to phase 3 as we enter earnings season. Phase 4 will be the realization that we are not in a V or U shape recovery, but something which I see more like the image below, a “LU.” Something between an “L” and “U.” There is nothing wrong with the shape, as I feel it is more sustainable, but not what anyone is looking for. Premium Content – Finishing Phase 2, Entering Phase 3? Mike’s Reading The Markets Premium Content $35/Month or $300/Year

South Korea KOSPI

South Korea fell by about 90 basis points. The good news is that the KOSPI is trying to break a significant downtrend last night, but failed to finish the day down 90 basis points. 

korea

Germany

Germany is also trading lower today by about 1.4%, filling most of the gap higher from yesterday’s trading session. 

germany, dax

S&P 500 (SPY)

The S&P 500 (SPY) ETF is trading lower today and holding to technical support at $263.35. Given yesterday’s sharp sell-off, I don’t think that level will stay for too long. 

spy

We see for now that the S&P 500 SPY ETF is also facing a downtrend at the moment as well. Again, I think we move lower from these levels with my target of roughly 2,500.

spy

Apple (AAPL)

Apple’s price target was lowered to $335 from $350 at JPMorgan today. Meanwhile, Piper Sandler raised its target to $300 from $260. The stock has struggled along with every other stock, and the roll-out of its newest iPhone’s sure to be delayed. The stock rose to around $275 yesterday and failed, and is likely now on its way back down towards $235. 

apple, aapl

Slack (WORK)

Slack has fallen back to $23.90 and is now likely to fall even further towards $21. Here was my original story on Slack. 

slack, work

Starbucks (SBUX)

Starbucks ‘ price target was lowered to $73 from $95. Again, as I noted last night, I think it falls to around $60. 

Starbucks, sbux

Square (SQ)

I had noted earlier this week, I thought Square could retest its recent lows, and I still think that is the case. I believe that increase above the downtrend may prove not to last. 

square, sq

Have a great day!

-Mike

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