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MAY 6, 2020
Stocks – C, AMZN, AAPL, BA
Macro – SPY, QQQ, XLF
Michael Kramer and the clients of Mott Capital own AAPL
MIKE’S PREMIUM CONTENT –
- Is The Unwind Upon Us?
- Tides Are Quickly Turning With S&P 500 2500 On The Horizon
- 20 MILLION JOBS LOST – MORNING COMMENTARY
- Gap Fills Nearly Complete, Watch For Reversals
Stocks sold off the final 30 minutes of trading today with the S&P 500 dropping by around 70 basis points finishing the day at 2,848. It feels as though we are running out of steam here and likely to see a pullback to a potentially large degree. I went through all of this in a video today, noting shifting trends. It all leads me to believe that the S&P 500 is looking to retrace back to roughly 2,500. Premium content – Tides Are Quickly Turning With S&P 500 2500 On The Horizon
Even the RSI is now starting to show signs of fatigue here with a few days of lower highs.
NASDAQ (QQQ)
Meanwhile, for now, there is a downtrend that has formed in the Qs with the potential for a move back to $212.
Financials (XLF)
But perhaps more worrisome is the performance of these bank stocks. I noted a potential double top pattern is forming in the XLF today. The ETF is very close to confirming this double top pattern as well. I also pointed out in the midday commentary for paying subscribers that the three big banks JPMorgan, Citigroup, and Bank of America, are all breaking down. Premium content – Is The Unwind Upon Us?
We care about this group because they are economically sensitive, and is the one group that can recoup the most during an economic upturn. Clearly, on the verge of breaking down, the bank’s stocks may be saying the economic recovery is nowhere to be found.
Citigroup (C)
I have highlight Citigroup a few times now. I think it is easy to see what is happening here. A drop below $41.20 gets the stock moving back towards the March lows.
Boeing (BA)
Boeing fell below support today at $126, and it appears to now be on its way to $102.
Apple (AAPL)
I mentioned in the midday that Apple might be topping out here. It is at $303 a robust level of resistance, and it appears it may be forming a rising wedge. A drop below $295 means that the stock has room to go to $265.
Amazon (AMZN)
Amazon is creeping very close to the uptrend, with a drop below $2,285, setting off that drop to $2,100.
That’s all
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.
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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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