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 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 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 is falling some today, and downside risk seems moderate potentially to that gap fill at $272.
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.
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.
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