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!
Subscribe to the Monster Stock Market Commentary and join the 2,483 subscribers getting it for FREE every day!
FEBRUARY 6, 2020
STOCKS: MSFT, FB, INTC, BABA, UBER
MACRO: SPY, EWG, EWY, EWJ, IWM, FXI
MICHAEL KRAMER AND THE CLIENTS OF MOTT CAPITAL OWN MSFT
February 13, 2020, Live Streaming Event
Michael will be hosting a live streaming event for members of Reading The Markets for Seeking Alpha and StockTwits on February 13 at 9 PM ET. It will focus on he uses fundamentals, technicals, and options market analysis to find stocks on the move. As well as taking questions from members!
To join the event you need sign-up!
Stocks are rising here in the US with the S&P 500 futures pointing to a gain of about 8 points to 3,343 a record high as of 6 AM ET. While markets in the US are reaching new highs, we can’t confirm this move with international markets or any markets yet. Interestingly while you can’t notice it here in the US, you can most certainly see in foreign markets, the giant gap fills taking place.
Markets Filling Gaps
This is a chart of South Korea, where we can see the giant gap fill taking place back up to January 23 levels.
This is the chart of Shanghai.
Then of course this is a chart of the Russell
S&P 500 (SPY)
So I guess, at this point, what I’m getting at, is that I’m not sure it is time to give the all-clear yet that the bull is fully back and that caution can be avoided. The S&P 500 futures are higher, but they have pulled back off their highs to some degree as well.
Copper prices have been rebounding too, but not anywhere close to the pre-selloff levels.
Oil prices are also rebounding, but to this point have been unable to get through resistance at $52, which is a significant level to watch here.
Alibaba is rising today, and yesterday we saw some options buying that indicated the stock could rise to around $335. Free article – Alibaba’s Recent Rally May Only Be Starting
Facebook is rising today a bit, but keep an eye on resistance around $212. An increase above $212 sends the stock higher back towards $220, but a failure back to $203, and probably lower.
Microsoft is also trading higher, and yesterday I noted some bullish options betting for this stock for the premium readers, that the stock may still have further rise to around $193. Premium content Why Microsoft Stock Still Has Further To Rise
Intel continues to push higher back to around $69. The stock found some solid support around $64 and appears to be heading back to resistance, with the potential to push higher towards $71.50.
Uber will report results tonight, and based on some bullish betting, I thought it could rise to around $41.60. Free article on Forbes – Uber’s Stock May Rise Following Results On Massive Volatility
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.