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12/21/20
Stocks – EBAY, ZM, TSLA, AMD
Macro – SPY
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- RTM-MIDDAY: GAP FILLING ALGO’S, TRENDS LOWER
- RTM Options Analysis – AMD Seeing Bearish Betting
- RTM Morning Note – The Sell-Off May Only Be Starting
- RTM Week Ahead: Stocks Return To Pre-Pandemic Valuations
- Driving Subscriber Value – New Enhancements
MICHAEL KRAMER AND THE CLIENTS OF MOTT CAPITAL OWN TSLA
Stocks fell sharply to start the day on December 21 but managed to stage a fairly sizeable rally. The volatility in the market is not all that surprising, given it followed quadruple witching. The storming back of the market wasn’t surprising either, given it has been the mantra of the market since March. But really, the rally may have been more about the mechanics and the algo’s working overtime to fill the technical gap that was created by today’s steep sell-off at the open.
S&P 500 (SPY)
Overall, the S&P 500 fell by roughly 40bps and was down nearly 2% at one point. It found firm support at 3,637, and just rallied back, and nearly filled the gap, but didn’t have enough in the tank to finish it off.
An increase to 3,710 would not be surprising, which would complete the gap fill. But whether that happens or not may not matter. I would tend to think that there is further to fall in this leg. Again, there are plenty of open gaps below, with the next at 3,620 and then 3,580.
The COVID variant news in the UK was not “new” news; it has been circulating since the middle of last week. We have been following it regularly. It makes for a great headline, of course, but that is about all.
VIX (VIX)
The same thing happened today in the VIX index.
Tesla (TSLA)
Tesla did trade lower today following its S&P 500 inclusion, falling by nearly 6%. The stock did manage to hold on to support at $650. The RSI is starting to diverge lower, and I am beginning to think the big run up may have peaked for now. We will see tomorrow if there is follow-through, but a break of $650 sends it lower to $575
AMD (AMD)
AMD fell today, and closed right on the uptrend, and is too close to call. But there was some bearish betting I picked up on at the $100 strike price, which makes me think this is one that will finally break and head towards $87. (premium content – RTM Options Analysis – AMD Seeing Bearish Betting)
Zoom (ZM)
Zoom may turn higher over the short-term here, before resuming it downward ways. The RSI is starting to move up; meanwhile, the stock is moving above resistance around $408. I think it has a window of opportunity short-term to fill the gap at $476.
eBay (EBAY)
eBay has been trending lower since July and filled a gap at $53.90. For now, I think it will continue lower towards its 200-day moving average at $48.
-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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