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May 5, 2021
STOCKS – AMZN, ACAD, TWLO, ZM, UBER
MACRO – SPY, QQQ
Mike’s Reading The Markets (RTM) Premium Content – FREE 2-WEEK TRIAL
- RTM Video – Is Growth Slowing
- RTM Midday – Stagflation Anyone?
- RTM Morning- Filling Gaps
- RTM Global News And Notes 5.5.21
- RTM MIDDAY- IS IT FINALLY TIME TO TALK ABOUT TAPERING?
- Roku Earnings Preview- Need To Know Guide
MICHAEL KRAMER AND THE CLIENT OF MOTT CAPITAL OWN ACAD
Stocks finished mostly lower, with the S&P 500 up just 7 bps, while the Qs fell by almost 35 bps. The index had been higher nearly all day and fell sharply going into the final hour of trading. The market looks tired at this point, and from a technical standpoint, it appears to be breaking down, especially among the growth sector. Specifically, when you start looking at some of these stocks that lead the market higher, appear to now be starting to lead the market lower.
The ISM data likely doesn’t help, with a number that missed estimates and prices paid that keep rising. It should make investors wonder if the growth in the economy is now slowing and headed towards Stagflation. I’m not saying I think we are heading to stagflation, but it is a question that needs to be asked. It is possible that peak US growth is now here or potentially behind us. (See premium content – RTM Midday – Stagflation Anyone?)
NASDAQ (QQQ)
The chart below shows how the Qs opened higher but failed to get over the resistance at $332, finishing the day at the lows of the day. You can easily see the RSI is trending lower, and that would indicate to me that lower prices are likely still ahead.
Bonds
Despite the hot inflation data from the CPI report, 10-year yields fell. Is the bond market now getting worried about slowing growth? Hard to say at his point, but certainly, a trend that needs to be monitored. I continue to think, for now, that rates are heading higher, with the potential to go beyond 2%. (Premium content – RTM Video – Is Growth Slowing)
Amazon (AMZN)
Amazon fell another 1.25% today and is now down almost 11% from its after-hour highs last Thursday. There is still no bounce, and the RSI looks pretty bad, and the next level of support is around $3,200.
Uber (UBER)
Uber is getting hit hard following results. I’m not even getting into those results. These guys either lose a huge sum of money every quarter or miss revenue estimates. They can’t seem to hit on all gears. The stock is currently right on support at $48.70 tonight; a break of that level sends the shares lower towards $37.85.
Zoom (ZM)
Zoom fell below $300 for the first time in forever, and that is going to put this one on a path to $275.
Twilio (TWLO)
Like Uber, Twilio is on the cusp of a huge breakdown. Trading in the after-hours around $320. The next level to watch for comes at $260.
Acadia (ACAD)
Acadia, I don’t know what to say. No type A meeting even scheduled, let alone had. They haven’t filed or had the meeting yet due to putting together the briefing documents. Too slow, in my opinion, they should be working day and night to get this process moving. Still have to sit and wait, I guess.
-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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