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MARCH 23, 2020
STOCKS: NKE, SQ, DIS,BAC
MACRO: SPY, VIX, SMH
I have been covering the recent turbulence in the markets and have been actively helping my members understand what is taking place in SA market place and on StockTwits. If you need help during this time or have questions, please try my Seeking Alpha Marketplace service Reading The Markets, or on StockTwits Reading The Markets
S&P 500 (SPY)
Stocks continue to melt, even after the Fed just launched QE infinity. The S&P 500 fell another 3.0% and is trading around 2,235. It managed to find some support around 2,190 to the start of the day, but that’s about the only positive thing I can point to.
The strangest thing I have seen recently is this dual pattern forming in the S&P 500. The trading channel is a force and one that appears to be very strong. But on top of that, there appears to be another pattern forming within that channel.
It appears that a falling wedge pattern is forming, and that may mean that the index is rising to the upper end of the range of the trading channel around perhaps back to around 2,270. What’s even crazier is it would only take us back to where we were to start the day.
VIX
The VIX managed to come down some today, falling to around 65. That is still too high and doesn’t suggest things are getting any better.
Semis (SMH)
The semis managed to have a pretty decent day, with the SMH rising. But again, like the broader indexes, the downtrend strong for this group as well.
Nike (NKE)
Nike has dropped to prices not seen since 2017, and likely isn’t finished falling, with the next significant level of support down at $50.60.
Square (SQ)
Meanwhile, Square has been destroyed and can hopefully find some support around $33.50.
Disney (DIS)
Disney has also been hurt, and they are going to struggle, given a big portion of their business has been hit the hardest by the virus. The stock so far has stopped at $78 and could be heading lower towards $70.
Bank of America (BAC)
Bank of America is now falling to support at $18.25, a price it hasn’t been at since the election, closing all gaps takes it $17.
ok that’s it.
-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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