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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September 21, 2020
STOCKS – AAPL, FCX, ROKU
Macro – SPY, GLD, UUP
- This Is A Different Sell-Off
- The Market Has Little To Support It
- The Second Leg Lower – Morning
- 10 THEMES FOR THE WEEK OF SEPTEMBER 21
- Nvidia May Drop 15% More
MICHAEL KRAMER AND THE CLIENTS OF MOTT CAPITAL OWN AAPL
Free video of the week:
Stocks fell sharply with the S&P 500 finishing the day lower by around 1.2%. It had been much worse, with the index down well over 2%. The index fell below crucial support around 3,260-3,270 while managing to reclaim that level by days end.
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S&P 500 (SPY)
I’m not sure that much changed though overall in the general direction of the market, which continues to be lower. It is entirely possible that we even see the S&P 500 climb back to 3,340 over the next couple of days, to close the gap from this morning sharp drop. It wouldn’t change anything.
The market has nothing to support underneath now that momentum is broken. (Premium Video – 1st 2-weeks are FREE to try – The Market Has Little To Support It)
Today’s sell-off did have a different tone, with the financials, industrials, and materials falling the hardest with the three sectors down between 2 and 3%. The sell-off today seemed to be driven more by the dollar than anything else. The dollar rallied somewhat sharply and managed to puncture through that challenging region of resistance 93.50. I talked about this in the mid-day update today. (Premium content – Get The 1st 2-Weeks Free – This Is A Different Sell-Off)
A stronger dollar may continue to hurt this group, especially those multi-nationally that export aboard, thus reducing revenue and earnings forecasts. Additionally, we know the damage a stronger dollar can do to the commodity trade.
It is why gold broke today, falling below support at $1,925, which will now act as resistance, on it way back to $1,790.
Meanwhile, it is also one reason why Freeport McMoran could be heading lower and back to $12.70, with a drop below $14.90.
Apple bounced back today, but notice where it failed at resistance around $110.
Roku went up 18% today because it finally got a deal to put Peacock on its streaming player. I don’t see how Peacock adds up to an 18% move in the stock; it seems kind of crazy to me. I wonder how much extra revenue Peacock will bring in for service that has no charge and runs ads? I guess the premium version doesn’t have ads, but still. Anyway, the stock shot up to an all-time high and probably has a bit more to go, since it technically isn’t overbought yet. Maybe I’m missing something here.
Have a good one!
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.