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October 20, 2020
STOCKS – AAPL, PG, MRNA
Macro – SPY,
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Macro Headlines:
- Are Stocks Lossing Faith?
- Stocks Will Try To Recover Friday’s Declines – Morning
- Themes For The Week Of October 19
- Sector Rotation Turning Defensive
- Biden’s Lead Is Narrowing Over Trump
Stock Specific:
- Exxon’s Stock May Be Heading For A Reversal Of Trend
- Micron’s Shares May Jump 9%
- PayPal May Surge With The Market, But Not Without Risk
- Intel’s Stock Is Breaking Out
MICHAEL KRAMER AND THE CLIENTS OF MOTT CAPITAL OWN AAPL
S&P 500 (SPY)
Stocks are rebounding some on October 20, as investors continue to have hopes a stimulus deal will be reached. There is supposedly a deadline that is in place for getting a deal done, but my gut feeling is that the deadline will be delayed, and this process will continue to get dragged on. It will likely help to keep stocks afloat for a while longer and lift them back to around 3,482 today on the S&P 500 futures.
Yields
As I noted last night, you didn’t see the bond or currency market react as sharply in response to the stimulus worries as the equity market. So the sell-off seemed a bit overdone on the equity side. Again, today, you are seeing bond yield still floating around the 78 bps level. Clearly, a big stimulus would likely result in those yields rising. It seems as if yields are waiting to see what happens before making their next move.
Meanwhile, the dollar is waiting patiently, too, still around the 93.50 level.
Apple (AAPL)
There is a report that Apple iPhone 12 orders pre-orders are nearly double that of the iPhone 11. Still, the shares have struggled since the release of the new phones. The gap around $115 is now filled, and I think the stock will bounce and push higher towards $124.
Procter and Gamble (PG)
Procter and Gamble reported better than expected earnings and revenue this morning. As a result, the stock is jumping and rising back to its previous highs of roughly $145. This is a level of resistance for the stock, with a break out likely pushing the shares higher to around $154.
Moderna (MRNA_
Moderna doesn’t exactly have the greatest looking chart, even though it is likely to report vaccine data in November. It looks like a head and shoulders pattern forming, but it needs to fall back to $54.80.
Enjoy the day!
-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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