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12/02/2019
Stocks: SPLK, BABA, BIIB, ROKU
Macro: SPY
MICHAEL KRAMER AND CLIENTS OF MOTT CAPITAL OWN SPLK
US Markets
- S&P 500 Futures +4.5 points
- US 10-Year 1.85%
- VIX 12.94
- Dollar Index 98.30
- Oil $56.43
International Markets
- Japan +1.01%
- China +0.13%
- HK +0.37%
- SK +0.19%
- Germany -0.30%
- UK -0.08%
Stocks are pointing to a higher for the S&P 500 after some manufacturing data continues to show improvement. Germany Manufacturing PMI came in at 44.1 versus estimates for 43.8, and up from last month’s 42.1. Also, the China Caixin PMI came in 51.8 versus forecasts for 51.4, and up from 51.7 last month. Meanwhile, the official PMI came in 50.2.Â
We will get our own PMI readings today, with the ISM reading at 10 AM. The reading is expected to rebound to 49.4 from 48.3 last month. You can hear more here, on in SA Market Place Reading The Markets – MORNING COMMENTARY 12.2.19
S&P 500 (SPY)Â
The futures have been drifting lower despite starting the day higher and based on the current levels, the cash market should open right around resistance at 3,150. If we can manage to get above 3150 today, then perhaps the next level of resistance would come around 3,200. But until the index can break above that region of resistance, I think we continue to hang in a holding pattern and trade sideways, until reaching the lower side of the trading channel.Â
Splunk (SPLK)
Splunk is catching a big today after receiving an upgrade from Goldman to buy from neutral while raising its price target to $180 from $147. The stock broke out of a significant level of consolidation between $108 to $141. The $141 level should offer plenty of support going forward, and the stock could be heading to $161.
Roku (ROKU)Â
Roku was downgraded to underweight from equal-weight at Morgan Stanley, and its price target was raised to $110 from $100. The RSI continues to trend lower, which continues to suggest to me longer-term the stock is heading lower. A break below $150, starting pushing it to $135.
Biogen (BIIB)
Biogen was downgraded to underperform from neutral with a $250 price target at Baird. The stock has failed on three occasions at a price of around $310 three times and now could be set up to retest support $280.
Alibaba (BABA)Â
Alibaba is pointing a to lower opening today, shocker. I spoke about this over the weekend. The chart suggests the stock falls to around $188. Baba went out at 195 HKD.
Have a good one!
-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. Â
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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.