January 2, 2020

Stocks: AAPL, TSM, TSLA, MU, SNAP

Macro: SPY, 10-Year

US

• S&P 500 Futures – +18.50 points
• US 10-Year 1.92%
• Dollar Index 96.6
• Oil $61.10
• VIX 13.41

Macro: 

• Japan – Closed
• China +1.15%
• HSI +1.25%
• South Korea -1.02%
• Germany +0.86% 
• UK +1.01%

MICHAEL KRAMER AND THE CLIENTS OF MOTT CAPITAL OWN AAPL AND TSLA

S&P 500 (SPY) 

Welcome everyone to 2020! Based on the futures, the markets are set to start the way they finished. S&P 500 futures are pointing to higher opening and set to rise by 60 basis points to 3250. 

Perhaps some of the optimism is stemming from the better than expected China Caixin Manufacturing PMI, which came in at 51.5 versus estimates for 51.4. Through in a German Manufacturing PMI of 43.7 versus forecasts for 43.4, and a Eurozone PMI of 46.3 versus estimates 45.9. Add in a reserve ratio cut in China, and the ingredients are there for the markets to push higher. 

But unfortunately, we are in the same spot we have been in around 3,250, which acted as resistance for the market in recent days. If the S&P 500 can get over 3,250, then it probably sets up a push much higher towards 3,392. 

10-Year Yields

Keep an eye on the 10-year yield as well; it approaches resistance at 2.95%. A break out could send yields sharply higher towards 2.15%.

Apple (AAPL)

Apple is rising sharply once again this morning; on reports from Digitimes that the comes plans to 6 iPhones in 2020. Based on the rising trading channel, the stock could rise to around $305.

Taiwan Semi (TSM)

Taiwan Semi is rising this morning on headlines the company landed orders for 5G iPhone antenna modules. Not much has changed on the chart for Taiwan semi, with resistance still around $60.70. 

Tesla (TSLA)

Tesla is also rising this morning after on headlines it plans to start deliveries of the Model 3 to the public in China on January 7. Also, Canaccord raised its price target to $515 from $375. If the stock clears $423 it has room to rise to $437.

Micron (MU) 

Micron is rising this morning on reports that NAND prices could increase by as much as 40% in 2020. The stock is still facing resistance around $56. 

Snap (SNAP)

SNAP is rising today, and it appears to be on a course to $17.20.

Have a great first trading day of 2020. 

-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.