August 7 – Stock mentions: SPY, DIS, ROKU, AMZN
Michael Kramer and the clients of Mott Capital own DIS
- S&P 500 Futures -14.5 points
- VIX 21.65
- US 10-Year 1.65%
- Oil $53.27
- Dollar Index 97.64
- Nikkei -0.33%
- Shanghai -0.32%
- HSI +0.08%
- KOSPI -0.41%
- DAX +0.75%
- FTSE +0.51%
The RMB weakened slightly overnight to 7.08 to the dollar. It may not matter much, because this is the region it has been trading in since Monday. As long as the yuan stabilizes, it should allow for US markets to remain calm.
Rates on the 10-year continue to fall, and now the 10-year is below 1.7%. I think the 10-year is likely heading to around 1.5%. I’m beginning to think that maybe the bottom for this cycle. Then we can start worrying about higher rates again.
S&P 500 (SPY)
The S&P 500 closed right at the uptrend level yesterday around 2,880. Now the big question is if the index can reclaim the December uptrend in a time that is reasonable enough to eliminate the damage on the chart or if this is the start of a steeper decline. The price action on August 7 will be telling. Support for the S&P 500 is around 2,850 and resistance continues to be at the uptrend. Should the S&P 500 rise above the uptrend, the next level of resistance does not come until 2915.
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Disney is falling after reporting dissappointing results. Nothing changes here for Disney, as the stock is not at 2019 story at this point. Investors are likely to give Disney a pass over the short term as investors focus more heavily on the company’s streaming future. Support for the stock appears healthy at $132.
Amazon continues to hold support at around $1770. I noted yesterday that I saw buying of calls which suggest that the stock rise. Should the stock rise above $1800, I think it can move towards $1850. Amazon Options Trades Suggest Shares Rise
Roku will report results tonight after the close. I noted yesterday in a free article that the stock could plunge to around $70 based on the technical chart. Roku’s Stock May Plunge Following Results
That will be all for today.
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