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.
Otherwise, enjoy the column!
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October 8 – Stock mentions: BABA, JD, MSFT, ROKU, SHOP
MICHAEL KRAMER AND THE CLIENTS OF MOTT CAPITAL OWN MSFT
I will be doing a live webinar on October 9 at Noon ET. It will be hosted by Interactive Brokers and is FREE to join. There will be a Q&A session, as well.
Mott Capital – Yield Inversion Creates Long-Term Opportunities
- S&P 500 -19.25 points
- US 10-year yields 1.54%
- Dollar Index 98.90
- VIX 18.95
- Oil $52.50
- Shanghai +0.29%
- HSI +0.28%
- Nikkei +0.99%
- KOSPI +1.2%
- FTSE -0.20%
- DAX -0.98%
Producer Price Index was much worse than expected, with:
- PPI Final Demand up +1.4% y/y vs. expectations +1.8%
- PPI Ex- Food & Energy +2.0% y/y vs. expectations +2.3%
- PPI Ex- Food, Energy & Trade services +1.7%
Jay Powell Speaks today at 1:50 PM
S&P 500 (SPY)
Well, it looks like we are going to refill that gap at 2910 based on the futures. Anyway, you have to love it. The first headline I read this morning was how the Asian markets were up last night ahead of “high level trade talks between the US and China.” But for some reason, our markets are down as optimism on “trade headlines dim.”
Alibaba is falling on headlines that the White House is considering placing limits one what Pension funds can invest in Chinese Stocks. The $166 level has been pretty critical for the stock in recent weeks. If that price doesn’t hold, then BABA is likely to fall to $151.
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JD.com is in the same boat, and for JD, $27.50 is a significant level to watch. A drop below that price pushes shares to $26.10.
Microsoft may get a boost today after it was upgraded by Jefferies to Buy from Hold while upping its price target to $160 from $93. The stock has been range-bound but has generally been trending lower more recently.
Shopify got within centimeters of our $333 target and is now pulling back. $315 should act as a powerful level of resistance.
Roku is reaching the downtrend, and the question here is, what happens next? I noted yesterday in my mid-day update I thought the stock would break $100. Premium content: Stock Look Solid Despite Negative Headlines
Have a great one
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.