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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.
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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.
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