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October 20, 2020
STOCKS – NFLX, SNAP, MU, UBER
Macro – SPY, QQQ
Stocks managed to finish the day slightly higher, with the S&P 500 rising by around 50 basis points, regaining some of the losses from yesterday. Still, the index gave back a big portion of its earlier gain, after being up by more than 1%. The markets are still hooked on this concept that a stimulus is coming and was boosted mid-day on some positive talk about a potential stimulus from Nancy Pelosi.
Still, to me, it seems like no deal will be had before the election, but it is in both party’s best interest to drag the process along so that the market remains stable or higher. I believe it is not in either party’s interest to have a volatile stock market this close to the election.
S&P 500 (SPY)
I still think the market can go higher into the election as politicians continue to drag the market along. There is potentially a bull flag forming in the SPX, and if that is the case, then we should see a break out later this week.
NASDAQ 100 (QQQ)
There appears to be a similar pattern in the Qs but not as nicely laid out.
Netflix (NFLX)
Netflix is falling after reporting revenue that beat estimates, with earnings and subscriber net additions missing. Additionally, guidance was disappointing as well. As a result, the stock is down about 6% and falling to support around $495. That is a big level that needs to hold, with a break likely setting up a drop to $475. (premium content – Netflix May Be Heading Lower Following Results )
Uber (UBER)
Uber had a solid day rising over resistance at $35.80. Hey, maybe it will hit that target of $38 I laid out last week. (Free story- As Uber’s Business Stabilizes, Traders Are Betting The Stock Rises)
SNAP (SNAP)
Snap is trading at its highest price ever. It took a few years to get back to those IPO highs, but it got there after posting better than expected results.
Micron (MU)
Micron is still creeping higher, moving over resistance at $52.80 today, and still on a path to reach $55.60. (Premium content from October 15 – Micron’s Shares May Jump 9%)
Ok more tomorrow
-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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