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June 23, 2021
STOCKS – PLTR, ZM, WMT
MACRO – SPY, HGX
Mike’s Reading The Markets (RTM) Premium Content – FREE 2-WEEK TRIAL
- RTM – Expecting A Pullback
- RTM Short-Term Bullish Trade Idea- Comcast
- RTM Morning – Turnaround Tuesday?
- RTM Morning Note- Expect Volatility To Pick Up
- RTM Short-Term Trade Idea- Micron
- Tactical Update – Everything May Have Just Changed
The S&P 500 finished the day lower by 11 bps to close at 4,241. The move lower didn’t seem to be triggered by any news, but Dallas Fed Governor Kaplan was out around 3:40 PM, noting he forecast the first rate hike in 2022. Remember, in May, Kaplan was the first Governor to emphasize that now was the time to talk about tapering. Now he is going out and talking about raising rates in 2022. So clearly, Kaplan has the job of playing the “bad” Fed Governor, the one that has to go out and talking about the hawkish policy. But given that he is now talking about this, we should be prepared for the Fed to signal before year-end to the market for a potential rate hike in 2022.
S&P 500 (SPY)
My chart in the S&P 500 future suggests we have completed wave “B” and are likely pushing into the wave “C,” resulting in the index moving lower back to 4,120.
Housing (HGX)
Today’s housing sector was weak, falling by 90 bps, following disappointing new home sales. We can see that the index fell sharply going into the final few minutes of the day.
Walmart (WMT)
Walmart looks very weak, sitting on support at $135.75 and an RSI that is trending lower. The gap from mid-February is now closed, and the stock has resumed its lower trend that started in December. It may just be a matter of when the stock falls back to $130.
Palantir (PLTR)
Palantir is nearing a breakout, which could send the shares higher to $29.90. The only problem is that the stock is nearly overbought with an RSI at 70 and a MACD close to converging. So a move to $29.90 may be a fast and short-lived trade.
Zoom (ZM)
Finally, Zoom is now at $376, where I thought it’d climb to. The downtrend is overpowering, and that break-out will not be easy. It is possible, but I doubt it is likely given the stock’s valuation and some indicators. I expect the downtrend to retake control of this stock.
-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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