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August 7 – Stock mentions: SPY, DIS, ROKU, AMZN
Michael Kramer and the clients of Mott Capital own DIS
US Markets
- S&P 500 Futures -14.5 points
- VIX 21.65
- US 10-Year 1.65%
- Oil $53.27
- Dollar Index 97.64
International Markets
- Nikkei -0.33%
- Shanghai -0.32%
- HSI +0.08%
- KOSPI -0.41%
- DAX +0.75%
- FTSE +0.51%
RMB
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.
Yields
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 (DIS)
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 (AMZN)
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
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Roku (ROKU)
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.
-Mike
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Charts used with the permission of Bloomberg Finance L.P. 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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