August 25, 2020
STOCKS – AAPL, TSLA, NVDA, FCX
Macro – SPY, TLT
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MICHAEL KRAMER AND THE CLIENTS OF MOTT CAPIAL OWN AAPL AND TSLA
Stocks are rising again this morning, with some of that rotation trade still working. That is helping to lift the SPY ETF higher by about 40 basis points. The futures have been rising in this channel, and at this point, the futures hit the upper bound of that the channel, additionally, the RSI on the futures with the RSI hitting 74. It seems like this is the place we should see the market turn, and at the very least, move lower back to 3,370.
We can see the rates are starting to rise with the 10-year approaching 70 bps.
Apple will split its shares in a matter of days, and we will find out what happens to all of that momentum. It seems to me that the stock could easily fall back to $440 from these overbought levels. There is also that giant gap down at $383.
Tesla is also in this camp of being overbought, with the potential for the shares to fall back to around $1900, and then potentially as far as $1650.
Freeport is another stock on watch as it approaches resistance at $14.90. This price level has been a significant level of resistance for the stock in the past. The stock tested this level last week and did fail.
Nvidia shares are also in the same camp as Apple and Tesla. It seems reasonable to think this stock could quickly move lower to $425.
That’s all I have for today, lots of more of the same at this point.
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