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11.20.20
Stocks – NVDA, ZM
Macro – SPY,
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- Market Calm Ahead Of OPEX
- Buyers Are Still Tired
- Stocks Drift, Will Nvidia Save The Day?
- Stocks Continue To Struggle At Resistance
- Bonds Signaling Double-Dip Recession?
- 2 Long-Term Theme Ideas And Valuations
- Signs For A Drop To 3200 Mount
- More Bearish Bets Placed On The SPY
- Bonds/Dollar Not As Excited As Stocks
- On Watch For A Sharp Pullback
Stocks finished the day lower, after a rather boring day. Most of the action took place in the final hour. It resulted in the S&P 500 finishing the day down about 70 bps, while the Qs fell about 70 bps.
There was nearly a $2 billion imbalance on the sell-side going into the closing cross. That was the driving force lower into the close, and I would think a lot of that was options expiration related.
S&P 500 (SPY)
I still think this market is heading lower, as it has so many classic signs of a top, which we have reviewed throughout the week. Now there may be a narrative to go along with the signs of a topping, the double-dip recession. I told you weeks ago; this narrative would surface, and it has. Now it is just a matter of when this because a narrative among the rest of the market.
The setup couldn’t be better. We just had options expiration, the number of stocks above their 200-day moving average is near historical highs. Now add to that inflation expectation, which has started to roll-over. We will see how things go.
Zoom (ZM)
Zoom was higher today, but remember I said it was likely the stock could go higher first. But notice how it stopped at resistance around $445. That price also happens to be where a downtrend lives, while the RSI continues to trend lower too. Overall, these are all bearish trends, suggesting there are still lower prices coming, and I think the next stop will be around $325.
Nvidia (NVDA)
Nvidia was weak today following its earnings earlier this week. The stock hasn’t gone anywhere since early September. The trends on the RSI continue to bearish, while a drop to $460 still seems likely.
Anyway, have a good Friday.
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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