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