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APRIL 22, 2020
STOCKS- CMG, NFLX, T, FB
MACRO – YIELDS, SPY
MICHAEL KRAMER OWNS IWM PUTS
S&P 500 (SPY)Â
Stocks are rebounding some this morning after two rough days of trading with the S&P 500 ETF pointing to a gain of about 1.3%. The trouble is that the ETF is hitting up against and failing at the uptrend it fell below yesterday. I’d be wary of a gap fill lower today, and then anything can happen after that.
Yields
Meanwhile, more concerning is that yields in Europe continue to rise. I first started noting this Monday morning in the Premium area. It could be suggesting that some investors are growing concerned over the economic outlooks for these countries. It is resulting in spreads between German and Italian, and German and Spanish spreads to widen.Â
Netflix (NFLX)
Netflix is falling some today after reporting blow out subscriber growth. Despite the big beat, it will be interesting to see how the company is affected by the pull forward of what is likely to be the majority of their 2020 demand. Additionally, content creation has been stopped for the time being, and I wonder how that may affect the rollout of its content later this year. It could translate to slower subscriber growth for the balance of the year. Resistance for the stock is now clearly at $450, with the potential for the shares to fall to around $385. Free story on Forbes –Â Netflix Shares May Drop Despite Massive Subscriber Beat
AT&T (T)
AT&T reported results, and the company continues to bleed its legacy DirecTV subscriber loss nearly 900,000 in the quarter. Support is at $28.90.Â
Facebook (FB)
Facebook is rising following SNAP’s surprise results, but resistance at $181 appears to be healthy. A breakout sends the stock higher to $191.
Chiptole (CMG)
Chiptole is jumping today after its results. I had no idea this stock fell so sharply. I had become a regular again at Chiptole before the coronavirus, and I admire their comeback. Just be careful, the gap is filled now up at $851.Â
Anyway, that’s going to be all for now. More throughout the day in the premium areas, otherwise see you later tonight.
-Mike
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Charts used with the permission of Bloomberg Finance L.P. 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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