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FEBRUARY 18, 2020
STOCKS: AAPL, TSLA, MU, NVDA, ROKU
MACRO – SPY
MICHAEL KRAMER AND THE CLIENTS OF MOTT CAPITAL OWN MSFT AND TSLA
Markets are pointing to a lower opening around the globe after Apple warned it would miss fiscal second-quarter revenue estimates due to the coronavirus. While everyone can note that they aren’t surprised, I think the more significant issue is that the company didn’t give a revised guidance range, it would suggest that Apple likely has limited visibility.
S&P 500 (SPY)
However, at this point, the damage seems contained with the futures down about 11 points on the S&P 500, which is essentially nothing. Markets in Europe are all down less than 1%, while most major markets in Asia were down by 1.5%.
Overall, I think this is likely to be looked through by the market as a short-term event. Any pullback is likely to be short-term in nature, with the general trends in the S&P 500 unchanged, which is for the market to move higher.
Apple (AAPL)
Apple is falling as expected, but again it seems relatively contained around $313. At this point, the stock is holding support around $311; after that, the next level comes around $300, which is where the stock fell to in late January. I don’t expect any pullback to be long-lasting. I noted this last night, in my premium room updates.
Micron (MU)
Micron has struggled around resistance in the $60 region. Today shares are pointing to a lower opening, and we will have to see if the stock can bounce back and get back above $58.65. If not, then it probably moves lower to $52.75, creating a potential double top. We will need to keep an eye on this one.
Nvidia (NVDA)
Nvidia is falling some today, and downside risk seems moderate potentially to that gap fill at $272.
Tesla (TSLA)
Tesla is trading relatively unchanged today, and after the pricing of the offering last and the significant volume the stock has been trading, I find it hard to believe the stock has much downside risk ahead of it over the short-term, the considerable risk is for shares to rise towards $850.
Roku (ROKU)
So far, Roku has been able to hold the $128 region time and time again. So as long as that region holds, the stock will be fine and will likely bounce — this is the must-watch region for the shares.
Have a good day.
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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