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January 24, 2020
STOCKS: INTC, SWKS, SQ, AMD, ROKU
MACRO: SPY, MTUM
MICHAEL KRAMER AND THE CLIENT OWN SHARES OF SWKS
S&P 500 (SPY)
Stocks are rising on January 24, with the S&P 500 futures rising futures pointing to a 7 point increase to start the day. In some respects, this may be the day that determines whether we see a meaningful break out higher, or failure at resistance leading to a pullback.
Stocks are essentially flat this week, and today the futures are sitting right at resistance at 3,336. So far, to this point, the futures have been unable to break through resistance.
It is this simple, a push above 3,336 likely gets the market moving higher towards 3,365, while a move below 3,310 pushes the index lower to 3,260.
Momentum ETF (MTUM)
I have become obsessed with tracking this Momentum ETF, MTUM. In some regards, I honestly have come to believe that this ETF will determine which way the S&P 500 (SPY) goes. All you have to do is look at the top 25 holdings to know why.
Intel (INTC)
Intel has received several positive upgrades today from the sell-side, and the charts show that the next level of resistance comes around $69. Just be careful, the stock is trading off the highs in the pre-market, and yesterday moves in Teradyne, and Texas Instruments should serve as a word of caution. The chart below is of Teradyne and Intel; I lined up so you can see the similarities.
SKyworks (SWKS)
Skyworks also got a bunch of price target increases after its beat and raise quarter, which I expected, given the scheduling change of results. However, shares aren’t moving higher, mainly because I think the market saw the same thing coming that we all saw coming. We will see what happens, it was an excellent quarter, and the guidance was strong. $122 is support for the stock.
AMD (AMD)
AMD, no surprise here that the stock is rising after Intel either. Again, I noted a couple of weeks ago; I thought $59 was a possibility. AMD’s Bulls Are Growing Even More Bullish – This is suppose to be a free article
Square (SQ)
I will be watch Square closely today, as it once again test $70.
Roku (ROKU)
Keep on an eye Roku today; it is at a make or break point. An increase above those trend lines sends the stock sharply lower, a break below $128, send the shares, well, sharply lower. Typically that pattern suggests it goes lower.
Have a great Friday. 😉
-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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