This column is my opinion and expresses my views. Those views can change at a moments notice when the market changes. I am not right all the time and I do not expect to be. I disclose all my positions clearly listed on the page, and I do not trade my account on the stocks spoken of in this column unless fully disclosed. If that does not work for you stop reading and close the page. Do not bother me or harass me.
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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
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 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 is jumping this morning but is failing at resistance around $47.
Nvidia is trading up to $256 last week’s highs, again failing at resistance so far. Be careful here.
Cisco is doing the same thing.
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!
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.