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August 6 – Stock mentions SPY, TSLA, NFLX, ORCL, AMD, FB
Michael Kramer and clients of Mott Capital own TSLA and NFLX
- S&P 500 Futures +24.75
- VIX 21.78
- 10-Year 1.75%
- Oil $54.91
- Dollar 97.54
- Shanghai -1.56%
- HSI -0.67%
- Nikkei -0.65%
- KOSPI -1.51%
- DAX +0.58%
- FTSE +0.05%
Calm has returned to the market at least for now as the Chinese Yuan strengthens slightly today to around 7.05. Should the yuan continue to strengthen it likely to calm investors nervous, and should it weak it will put investors on edge.
The USDJPY should be monitored as a fear gauge. Yesterday the yen strengthened materially versus the dollar, as this can be seen as a safe-haven trade. A return to 106 would be a positive and sign that investors nerves are calming. However, a drop towards 100 would suggest that investors are growing more anxious.
S&P 500 Futures (ES)
The S&P 500 futures had touched a low of about 2,775 overnight, and to this point, it has rebounded to around 2860, a significant overnight reversal.
S&P 500 (SPY)
But the significant level to watch in the S&P 500 for August 6 and what has now become resistance is around 2875 to 2880. At this point, it worth proceeding with caution. As we know from past experiences, market sell-offs such as yesterday’s are usually never one and done. Additionally, gaps higher on the open are typically sold. Therefore one should proceed with caution for a variety of reasons.
Premium Content: Retest Of June Lows Seems Possible
So we will continue to watch an wait.
Tesla has held up reasonably well the downdraft over the past few days, and support at $225 continues to be reasonably stable. It does suggest that $253 could be within reach.
NFLX to this point has held the post-earnings lows around $305. But the problem is that now resistance has moved to $321 from $342.
The gap for Oracle is closing, and ORCL could very well continue to fall towards $51.
AMD is rebounding some, but resistance for AMD is around $28.60.
Facebook fell to support at $180.60, and that means that resistance comes at $186.10.
Good Luck today
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.