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12.7.20
Stocks – DOCU, AMZN, ROKU
Macro – SPY
Mike’s Reading The Markets (RTM) Premium Content – NOW WITH A 2 WEEK FREE TRIAL
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Stocks were mixed on Monday, with the S&P 500 finishing down about 20 basis points, while the QQQ ETF finished higher by 60 basis points. The market received a boost in the final few minutes, which allowed it to rally back by around 30 basis points.
Overall, nothing dramatic took place in the markets, with some consolidation after a big move higher. Newsflow is really light, with the focus mostly around another round of stimulus, again.
I think we are currently in the middle of a giant rising wedge pattern in the S&P 500, and if that is the case, then we should be getting ready for a rather sharp move lower here. There are so many gaps that need to be filled at lower levels we could see the index drop to as far as 3,200 to 3,300.
If you want to really see something, check out this rising wedge pattern off the March lows. It is present in the RSI too.
Moving on…
Amazon (AMZN)
Amazon stock is struggling, despite everyone in the world know they will have a killer holiday season. Its already been priced into the shares. Now, could the stock break out and soar ahead of the already known? I guess anything is possible. But the shrinking volume and negatively sloping RSI suggest it isn’t likely. I’m watching for a break below $3,100 to drag in more sellers and push the stock lower.
Roku (ROKU)
I’m not sure why Roku keeps going higher; its valuation is nuts, along with volume that is drying up and an RSI going in the wrong direction. Good luck with that; it won’t be pretty when it breaks.
DocuSign (DOCU)
DocuSign fell today and has completed its gap fill from its post-earnings jump. The stock has failed three times at resistance around $246. I guess that means we will have to wait and see if this overvalued stock rises further or fall; my guess is lower.
That’s gonna be all for a sleepy Monday.
-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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