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August 26, 2020
STOCKS – TSLA, SQ, GLD
Macro – SPY, QQQ
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- Nasdaq Setting Up For Typical 4-5% Correction
- Internals Decline As Risk Assets Diverge
- Pfizer Call Buyers Come Back For Round 2
- Waiting On Gap Fills
- Stocks Are Set To Rally On August 24?
- Risk Asset Remain On Watch The Week Of August 24
- Micron’s Stock Declines May Be Far From Over
- Something Gotta Give.
- Dollar Steals The Show On OPEX – Morning
MICHAEL KRAMER AND THE CLIENTS OF MOTT CAPITAL OWN TSLA
MICHAEL KRAMER OWNS A QQQ PUT
Another day, another stock market advance. Markets started mostly weaker across Asia but managed to stage a late comeback to finish slightly higher. Meanwhile, the NASDAQ 100 ETF (QQQ) is rising by 50 bps after Salesforce delivered better than expected results.
The big question that remains is how much higher the NASDAQ will rise. Do we gap higher and fill the gap and move lower? Possibly. The momentum in the market remains very strong, and as long as the uptrend remains, we must respect the rising momentum. But as I pointed out yesterday, the last several times the QQQ has hit the upper end of the trading channel and RSI over 70, it has led to a move to the lower end of the channel. Yet to be seen, but worth noting.
10-Year (TLT)
Meanwhile, Treasury yields are rising today and testing the early August highs at 73 bps. The next level for yields comes around 78 bps. Again, higher rates and a strong dollar could be the one thing that messes the equity market rally up.
Tesla (TSLA)
Tesla is rising today after Jefferies raised its price target on the stock to $2,500. At this point, it feels like analysts are just chasing stocks higher, falling over themselves to keep their target’s relevance. Resistance remains around $2,100.
I moved support on Gold down to $1913. It seems like there a bearish descending triangle forming in the metal, which likely results in a decline to $1865.
Square (SQ)
Square continues to rise to maintain its perfect uptrend. Now it may be forming an ascending triangle, with the potential for the shares to go even higher. Maybe even to $188.
That’s all for now.
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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