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APRIL 6, 2020
STOCKS: ZM, SQ, NVDA, MA, CSCO
MACRO – SPY, IWM, EWG
MICHAEL KRAMER AND THE CLIENTS OF MOTT CAPITAL OWN MA
Welcome back! My kids have no school for the foreseeable, which means they sleep late, and that means you win, because I have time to write the morning commentary again, so everyone is happy!
I’m not sure what has changed since Friday that the markets are jumping here. The virus is still spreading, and the economic impact is likely to be severe. I now personally know five people that are confirmed positive for the virus, Premium content – Earnings Decline, Still Have Further To Fall- For The Week Of April 6
S&P 500 (SPY)
Stocks are pointing to a higher opening on April 6, with the S&P 500 ETF rising by roughly 3.75%. But this only gets us back some of the losses we saw last week and the significant levels of resistance that continue to live around the $263 level. So currently trading around $257.65 doesn’t excite me. I still think this market is in a prove me wrong state, and that means rallies are not to be trusted. I’d be careful here, and watch for a gap fill back to around $250. Premium content – Stocks Are Jumping, Lots Of Bearish Options Betting
Germany (EWG)
The German DAX is also still trading below an essential level of resistance too, and again, these are significant levels. The sellers seem to be letting markets rise just so much.
Russell 2000 (IWM)
The Russell 2000 ETF IWM is also failing around $110, with the risk for a gap fill back to $105.
Zoom (ZM)
Zoom is getting crushed as more privacy concerns arise over the weekend, and I’m sticking with my thoughts; it heads back to $105. I have been using many of these conference apps over the past few weeks, and I don’t see what’s so special about it, but what do I know.
Square (SQ)
Square is jumping this morning but is failing at resistance around $47.
Nvidia (NVDA)
Nvidia is trading up to $256 last week’s highs, again failing at resistance so far. Be careful here.
Cisco (CSCO)
Cisco is doing the same thing.
Mastercard (MA)
Mastercard is trading higher too, but hitting some resistance at a downtrend, with another level of resistance around $252. Again, watch for downside risk and gap fill.
Have a great Monday!
-Mike
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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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