Stocks Are Pointing Lower On May 14 Ahead Of Initial Claims

This column is my opinion and expresses my views. Those views can change at a moments notice when the market changes. I am not right all the time and I do not expect to be. I disclose all my positions clearly listed on the page, and I do not trade my account on the stocks spoken of in this column unless fully disclosed. If that does not work for you stop reading and close the page. Do not bother me or harass me.

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MAY 14, 2020

STOCKS – F, T, GE

MACRO – SPY, EWY, SX5E

Short-Terms – Bearish

Long-Term Trends – Bearish

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S&P 500 (SPY)

The S&P 500 futures are down about 25 bps and have stayed below that 2,825 level all night. Does that mean something? It may. Yesterday There was approximately $1.3 billion to buy on the closing cross, and stocks lifted in those final 10 minutes. As the index moved higher, it was when the S&P 500 reached around 2820, the imbalance paired off. It tells me that at 2820 level and higher for now are where the sellers are living. So the fact that the futures traded below 2825 level all night is interesting and noteworthy. 

An increase above 2825 can probably push the index higher towards 2860. A drop below 2,800 sets up a move to 2730.

S&P 500, spx

Stoxx 50

It surely is not looking good in Europe with the Euro Stoxx 50, with what appears to be a completed head and shoulder pattern. If that is the case, then a drop to 2630 may only the start. 

S&P 500 Stocks Above Their 50-Day

The number of stock in the S&P 500 above their 50 day-moving average is right back to where they were in February. Really, even a head and shoulders pattern here, but in the RSI. What gives?

50 day moving

South Korea (EWY)

Meanwhile, the KOSPI RSI is now rolling over too. 

KOSPI

Ford (F)

Keep an eye on Ford, the stock is breaking its mini-uptrend, and it looks awfully like a bear flag. 

Ford, f

GE (GE)

GE is also falling out of its descending triangle. 

AT&T (T)

AT&T is also breaking down and has some support at $27.35. 

AT&T, t

Anyway, that’s all I got. Don’t initial jobless claims at 8:30 AM. That should be interesting.

-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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