Stocks Are Rising On April 22 As Support Now Becomes Resistance
Stocks are rising on April 22, but one needs to be very careful as support now becomes resistance and, at the moment, it is failing.

Stocks Are Rising On April 22 As Support Now Becomes Resistance

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.

Otherwise, enjoy the column!

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APRIL 22, 2020




S&P 500 (SPY) 

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.

S&P 500, spy


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. 

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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 – Netflix Shares May Drop Despite Massive Subscriber Beat

netflxi, nflx

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. 

AT&T , t

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.

fb, facebook

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. 

chipotle, cmg

Anyway, that’s going to be all for now. More throughout the day in the premium areas, otherwise see you later tonight.


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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