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July 10, 2020
STOCKS – V, MA, PYPL, SQ, TSLA
MACRO – SPY, QQQ
Mike Reading The Markets Premium Content – $35/Month or $300/Year
- Trends Remain Lower – Midday
- The Worst May Be Yet To Come
- Afternoon Repo To Determine Direction- Midday
- Downwards Trends Remain
- Markets Setting Up For 5-6% Dip
- Downwards Trends Remain
- Nvidia Is Priced For Perfection, May Have Topped Out?
- Stocks Trying To Breakout Ahead Of Data
MICHAEL KRAMER AND THE CLIENTS OF MOTT CAPITAL OWN TSLA, V, MA
Stocks had a pretty blah week with the S&P 500, mostly finishing flat. It was a strange day because there wasn’t much going on around lunchtime, and the market caught an end of day bid. Perhaps there was some short-covering going into the close, maybe. Indeed not the usual trend. I noticed the market caught fire around the time that Tesla broke out this afternoon, and perhaps that ignited the risk-on momentum algos and ETFs. There was no reason for the rally otherwise.
There were a few positive remdesivir comments this morning. But the market doesn’t care about the coronavirus anymore anyway.
S&P 500 (SPY)
I find myself confused at the moment regarding the S&P 500 and what happens next. There is a downtrend in place, and that has limited the market’s advance since the beginning of June. But there is a pattern that resembles a bullish flag pattern. If that is the case, then the market will rally sharply to around 3,240. Unfortunately, the way the market went out today it leaves me guessing as to what happens next. It could very well be that the next short-term move for the S&P 500 is higher.
QQQ
The NASDAQ has gone parabolic versus the S&P 500, and it is now valued at its highest level versus the SPY, ever!
Financial (XLF)
The financials ran up today, ahead of some significant earnings next week. If the S&P 500 can get the bank’s stocks working in its favor, then the next level to watch for could very well be around that 3,230 level. The XLF got back to $23.60, which has been a problematic level since the middle of June.
Tesla (TSLA)
Believe it or not, Tesla may have been responsible for dragging the entire market up today. The stock has a 2.5% weighting in the QQQ’s, and it was up 10% on the day. You can see that as Tesla broke out, it eventually led to the Qs moving up. Once, the Qs started moving up, it took everything else with it, because that how ETF’s work.
PayPal (PYPL)
PayPal has seen its RSI just go nowhere despite a stock that has been rising. Man, I wouldn’t want to be near this thing when that gap gets filled.
Visa/Mastercard (V, MA)
Again, I can’t understand why we haven’t seen the same optimism for Visa and Mastercard that we have seen for PayPal or Square, makes zero sense.
Mastercard (MA)
The chart for Mastercard doesn’t even look that strong, which is just bizarre. Since everyone is buying stuff on Amazon, shouldn’t Mastercard be performing much better? It looks like it about to go to $272.
Visa (V)
Meanwhile, Visa could easily slip to $181.
What do I know…
Have a good weekend.
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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