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
- Finishing Phase 2, Entering Phase 3?
- Stocks Are Testing Big Resistance Levels
- Stocks Set To Rally, But Options Still Betting It Doesn’t Last
- Stocks Reach Critical Levels
- Stocks Are Jumping, Lots Of Bearish Options Betting
- Earnings Decline, Still Have Further To Fall- For The Week Of April 6
- The Next Live Webinar Will Be April 16 At 9 PM ET
- Unemployment Rate Understated, As Economy Weakens Materially
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.
Germany is also trading lower today by about 1.4%, filling most of the gap higher from yesterday’s trading session.
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.
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.
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.
Slack has fallen back to $23.90 and is now likely to fall even further towards $21. Here was my original story on Slack.
Starbucks ‘ price target was lowered to $73 from $95. Again, as I noted last night, I think it falls to around $60.
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.
Have a great day!
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