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FEBRUARY 19, 2020
STOCKS: AMD, NVDA, TSLA, SQ
MACRO: SPY
MICHAEL KRAMER AND THE CLIENTS OF MOTT CAPITAL OWN TSLA
MICHAEL KRAMER OWNS SPY CALLS
S&P 500 (SPY)
Stocks are rising around the globe today, and S&P 500 futures are no exception. However, they are off their highs, failing to hold above resistance at 3,379. I’m not sure that means much at this point, but if this market is to continue pushing higher, we will not want to see the future fail too many times at that level of resistance. We will need the S&P 500 to rise above that level early in the day and continue pushing higher. There is one potential catalyst today, at 2 PM, which is the FOMC minutes.
AMD (AMD)
I noted yesterday in a free story; I thought AMD’s big run higher was likely to come to an end. I went through a list of things that suggest the stock is likely getting ahead of itself here. Resistance for the stock comes around $59, and it seems possible that the stock trades up to $59, and then reverse lower. My view currently is that shares fall back to around $53. I have been very bullish on AMD in recent weeks, even after the stock fell following results. AMD’s Massive Rally May Be About To End
Nvidia (NVDA)
Nvidia was upgraded by Bernstein to Outperform from market perform and raising its price target to $360. Well, resistance at $293 hardly lasted, and that most certainly was not as I expected. Let’s see where the stock closes today; then, I think I can better figure out what’s next.
Tesla (TSLA)
Piper boosted its price target on Tesla to $928 from $729. Piper is looking for opportunities in Tesla’s solar business. The all-time high for the stock is around $970, and with shares trading around $920 this morning, $970 is the price to watch for.
Square (SQ)
Square is at resistance at $83. I drew in what appears to be a rising wedge, and that could indicate that the stock fails to break above $83 and instead pushes lower towards $79.
Mike
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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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