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May 10, 2021
STOCKS – AMZN, JD, MU, FCX
MACRO – SPY, COPPER
Mike’s Reading The Markets (RTM) Premium Content – FREE 2-WEEK TRIAL
- RTM Video – Capitulation?
- RTM MORNING – Reflation Trade May Be Running Out Of Room
- Measuring The Life Cycle Of The Reflation Trade
- MORNING NOTE- TOO MUCH OF A GOOD THING
- Is The Reflation Trade Ready To Deflation?
- RTM MORNING: WE ARE THIS CLOSE TO THE CLIFFS END
Stocks had a very lopsided day, with the S&P 500 dropping by around 1%, while the NASDAQ fell by nearly 2.7%. The growth stocks got hit the hardest, while the reflation names had some big intra-reversal. Overall, today was not a pretty day, with many big reversals throughout, not just in stocks, with copper marking a big reversal lower.
For now, the 5-wave count I pointed out on Sunday stands and based on that, I would think the index could finally make that push back to 3,960 we spoke about a month ago.
Copper
The copper reversal was notable, especially after a big run-up. It is the type of price action you see at the end of a run higher. Copper has certainly had a big run higher, and drop back to $4.50 certainly doesn’t seem unlikely.
Freeport (FCX)
Freeport was one of the stocks that had a big reversal today after gapping higher. It left the stock trading below support at $43.60. Given the big reversal today, it would not be surprising in the least to see the stock reverse lower towards $39.
Amazon (AMZN)
Amazon comes to a crossroads as it approaches its 200-day moving average. This could be a big turning point for the stock, as a break of the 200-day moving average would certainly be a long-term momentum breaker. It has already tested this level once and survived; the question is if it can do it again? The only difference is that this time, the 50-day and the 200-day meet to form a death cross.
The selling has come on strong volume.
Micron (MU)
Micron was hit hard today, too, falling by almost 6%. The stock is probably now on its way to $74. I have been waiting for $74 for a while; maybe this time, it finally happens. The RSI says there is further to fall.
JD.com (JD)
JD.com has to hold support at $67.30 to avoid a bigger meltdown. The death cross is in play with the 50-day crossing over the 200-day.
-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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