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June 9, 2020
STOCKS – NVDA, WFC, C, XOM
MACRO – SPY, QQQ, EWG, OIL
MIKE’S READING THE MARKET PREMIUM CONTENT $35/MONTH OR $300/YR–
- Exxon’s Recent Surge May Fade Fast
- Setting Up For A Sizable Pullback Short-Term – Midday
- Its All About The Fed This Week
- Earnings Trends For 6.6.20
Stocks are falling today. Again, the move higher has been unprecedented, and now stocks are overbought. Can they continue to rally, anything is possible. Should they continue to rally, probably not. The markets are extremely overvalued whether you are valuing it on 2020, 2021, or 2022 earnings multiple.
South Korea (EWY)
Markets around the world are weaker, with South Korea gapping higher for the second day in a row and then fading. The index is facing a tough downtrend currently that goes back to levels in 2018. So clearly, South Korea has been struggling for several years.
S&P 500 (SPY)
The S&P 500 ETF is also moving lower this morning to start the day off. The ETF has support both horizontally and at an uptrend at $312. It is a significant level to watch.
NASDAQ (QQQ)
The Qs are moving lower too and a drop below $238 takes the ETF below its rising wedge, and a drop below $234 will start making this interesting.
10-Year
Maybe the bond market realizes what I told you the other day, that jobs data was not as good as it seemed. Currently, yields have a failed break out at 0.89 basis points.
Oil
Oil is pulling back too, as it fails to hold a break out at $39.
Nvidia (NVDA)
Nvidia is falling some this morning, and at the moment, is moving below the uptrend. Meanwhile, the RSI suggests shares move lower; it is not a flag pattern either.
Citigroup (C)
It will be interesting to see what happens with these bank stocks. They have been hot, and if they start to fade, that could be a big problem. Citigroup is one of those stocks, and we are likely to find out today if they are posting failed breakouts or if they are starting a new uptrend.
Wells Fargo (WFC)
Wells Fargo has paused at resistance at $33.25, and the stock is overbought. A pullback to $29.60 seems possible.
Exxon Mobile (XOM)
Exxon is falling today after failing to break out at around $54. I noted some bearish betting this stock yesterday, and the potential for shares to fall back to $50. Premium content – Exxon’s Recent Surge May Fade Fast
Have a good one
-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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