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FEBRUARY 13, 2020
STOCKS: TSLA, AAPL, CSCO, ROKU, BABA
MACRO: SPY,
MICHAEL KRAMER OWN SPY CALLS
MICHAEL KRAMER AND THE CLIENTS OF MOTT CAPITAL OWN TSLA, CSCO, AND AAPL
JUST A FEW MORE HOURS:
Michael will be hosting a live streaming event for members of Reading The Markets for Seeking Alpha and StockTwits on February 13 at 9 PM ET. It will focus on how he uses fundamentals, technicals, and options market analysis to find stocks on the move. As well as taking questions from members!
He will be reviewing mostly the basics of Technical Analysis and Option Trading
Stocks are falling on February 13 due to a “recount” of the number of people in China with the coronavirus. It has resulted in the market across Europe to fall by fall by around 1%, while S&P 500 futures are falling by about 80 bps.
S&P 500 (SPY)
The decline seems odd to me from several standpoints. First, because the initial reaction in Asia was somewhat muted, meaning the markets were mostly higher even when the news first came out. It was nearly 3 hours into the session that the market started to turn lower, finishing the day down about 24 basis points, while holding crucial support around 2,230.
Meanwhile, Hong Kong fell by just 34bps, while Japan was down only 14bps. So I’m wondering why US futures are down so much more dramatically. We will see if the sell-off in the US lasts. It feels like one of a gap lower and fill the gap type of days.
Cisco (CSCO)
Cisco shares are falling after reporting better than expected results, and inline guidance. The stock is falling; I think because investors were looking for signs that the business was picking up. Instead, Cisco gave me the impression that wasn’t the case, yet. Cisco tends to be a company that underpromises and over deliveries, so the inline guidance isn’t surprising to me. There is some support around $48, with the stock giving back all it pre-earnings gains. I had thought the stock would head to $55. We’ll see where it is in a couple of days.
Alibaba (BABA)
Alibaba reported results this morning, and the stock is pretty much flat, it had been lower before the results. I had noted yesterday some buying for the $250 calls for expiration this week, whoever was making a bet shares would rise sharply is not likely to be happy. I generally think the trend in Alibaba remains higher.
Tesla (TSLA)
Tesla just announced it would commence a $2 billion equity offering. I think it is a smart move for the company. The chart is somewhat useless at this point, but there does seem to be some support at the upper uptrend. It will also reset the stock, and set a new floor, and the pricing of it will be the key.
Apple (AAPL)
For the first time in a while, I have placed a level of technical resistance for Apple at $328. Support for the stock would come around $311.
Roku (ROKU)
Roku will report results tonight, and again, as I noted, I have flipped from bear to bull. Watch for support at $135.
Have a good day
-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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