April 20, 2021
STOCKS – NFLX, ROKU, IBM, BA, XBI
MACRO – SPY
Mike’s Reading The Markets (RTM) Premium Content – FREE 2-WEEK TRIAL
- Midday- Stocks Drop With More Warnings Signs Building
- Understanding And Modeling S&P 500 Earnings Estimates
- RTM Morning Note- Gearing Up For Netflix
- Netflix Earnings Preview- Need To Know Guide
- Midday – Bitcoin Could Hold The Key To Where Stocks Go
- Morning Note: Gamma Levels Drop, Will Stocks Drop With.
- Peak Earnings Growth May Mean Peak Multiple Expansion – T.W.A
- Morning Note- All Signs Point To A Post Opex Hangover
Stocks fell for a second day, with the S&P 500 dropping by 70 bps, nothing too exciting. The only thing established today is some good support around the 4,125, which was anticipated. There is still a gap at 4,080 that needs to be closed, and with Netflix dropping tonight, we could see that get filled tomorrow. I still think we head towards 3,960 over the next few weeks.
Biotech (XBI)
Well, I wasn’t sure what kept the XBI from falling below $126.85, and I figured it out. That is where the 200-day moving average rests. The XBI already broke its 50-day moving, and a break of the 200-day would be terrible. I am wondering if the XBI already broke the 200-day, and now it is acting as resistance. It sure looks like it could be. It doesn’t look good overall, and I wouldn’t be surprised to see it drop to $114.
Netflix (NFLX)
Netflix is falling below $500 in the after hour. It missed net adds for the first quarter and guidance for the second quarter. Not a good sign. Clearly, the “re-opening” effects are happening sooner, not to mention they raised prices.
I don’t think I have ever seen them guide a quarter to just 1 million net adds. That means there may even be a risk net adds, turning to net losses in the second quarter, which will likely cross people’s minds, especially after the company missed guidance by around 2 million subscribers in the first quarter.
The price around $490 now becomes resistance with support at $470. The stock has tested $470 many times, and I think these results could put that in play.
Roku (ROKU)
Roku is trading lower following the Netflix news, as it should. The next level to watch there is around $300.
IBM (IBM)
Not only did IBM break out today and rise above resistance at $136, it gapped over resistance. Maybe even a breakaway gap. That could be good news and pave the way for a push to $148.
Boeing (BA)
Boeing fell about 4% today. The stock broke below support at $239, making it possible for the stock to fall back to $215.
-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.