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July 24, 2020
Stocks – SHOP, INTC, AMD, AAPL
Macro – QQQ,
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- The Momentum Trade Is Breaking
- Morning Write-Up
- AMD Breakout, Markets Holding – Midday
- Index At Razor Thin Levels – Morning
- Nothing Makes Sense Anymore
- Still Buying Puts On The Markets
- A Decpitive Bull Run – Morning
MICHAEL KRAMER AND THE CLIENTS OF MOTT CAPITAL OWN AAPL
Stocks are trading mostly lower on the morning of July 24, following more rising tensions between the US and China. It is resulting in the S&P 500 SPY ETF is falling 25%, and the NASDAQ QQQ ETF is falling by 80%. Markets in China were weaker, with the Shanghai index falling by 3.9%. It means that the sell-off we saw yesterday in the NASDAQ is at least expected to continue at the start of trading.
NASDAQ (QQQ)
For now, the QQQ ETF is trading around $255.50, bringing the ETF to the lower end of the trading range. Now to this point, every time the Nasdaq has fallen to this end of the trading range, it where we have seen the index bounce. At this point, it is hard to say what will happen. The key here is holding and maintaining the uptrend; if Qs the close below the uptrend, around $252, it will likely signal a deeper sell-off.
Copper
One worrisome trend is that copper fell below its uptrend and is now trading at $2.89.
The Yields
The 10-year yield fell to and tested support around 55 basis points. Again this is a significant level that must hold.
Apple (AAPL)
Apple is now trading below its uptrend for the first time since this whole bull rally started. So it is a rather significant breakdown. If the stock can’t hold on to $367, it could have further to fall, potentially to $348.
Intel (INTC)
Intel was getting crushed this morning following its results last night, and it appears that the stock is heading to $50.25.
AMD (AMD)
As a result of Intel’s problems, AMD is rising sharply. The stock broke out on Wednesday and retested that break out on Thursday. I have to think about where the stock can go, but the significant level of support is at $59.
Shopify (SHOP)
Meanwhile, Shopify may come under pressure should it fall below $910. The next significant level of support would be around $850.
-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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