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Stocks Drop On May 31, But Eke Out A Positive Month

This column is my opinion and expresses my views. Those views can change at a moments notice when the market changes. I am not right all the time and I do not expect to be. I disclose all my positions clearly listed on the page, and I do not trade my account on the stocks spoken of in this column unless fully disclosed. If that does not work for you stop reading and close the page. Do not bother me or harass me.

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5/31/22

STOCKS – AMZN, CRM

MACRO – SPY, TIP

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Stocks had a strange session trading in a wide range, dropping sharply at the start, rising mid-day, and then dropping into the close. The S&P 500 finished down 63 bps for the day and up 0.01% for the month. The index struggled all day, stuck between 4,100 and 4,160. The index tested that 4,160 level 4 times today, and by the end of the day, the sellers took over. Even a nearly $5 billion market on close buy imbalance couldn’t help to lift the index.

I still think we will see lower prices, and those gaps down to 3,980 will get filled. It is just taking longer than I would like.

TIP ETF (TIP)

It was a day that saw nominal yields, real yields, and the dollar index climb. That weighed on the TIP ETF, which fell by nearly 70 bps. It took the ETF to the lower end of its recent trading channel. It could be the start of another leg lower for the TIP, which makes this next move in the ETF very critical. But for that to happen, it first needs to break the lower bound of its current trading channel.

Amazon (AMZN)

Amazon was one of the biggest reasons why the S&P 500 held up as well as it did. The stock was up more than 4%. The shares climbed back to the trend line it gapped under, following its horrid first-quarter results. That is pretty much where the stock stopped rising. At this point, I think this is very much a bounce back from oversold conditions.

Salesforce (CRM)

Salesforce is rising by more than 7% after-hours; the earnings were ok, but they didn’t look fantastic. I guess all I can say is better than feared. I need to look at them more closely. Salesforce was a stock that was down almost 50% from its peak and trading at levels it last saw in October 2019. That could have a lot to do with the bounce as well.

I guess that is it for today; there is not else to go over.

-Mike

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. 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.