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September 17, 2020
STOCKS – AAPL, FB, NFLX
Macro – SPY, QQQ,
Mike’s Reading The Markets (RTM) Premium Content – NOW WITH A 2 WEEK FREE TRIAL
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- 9 Themes For The Week Of September 14
- Sell-Off Has Much Further To Go
- My Portfolio Breakdown -Entry Spots
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MICHAEL KRAMER AND THE CLIENTS OF MOTT CAPITAL OWN AAPL
Stocks fell today, with the S&P 500 down about 85 bps, and the NASDAQ 100 down around 1.5%. It sounds terrible, but it could have much worse, if not for a mild rally in the final hour, that helped add back about one percentage point.
S&P 500 (SPY)
The index had shown some strong resilience testing support on the S&P 500 around the 3,330 level on a few occasions, each finding a meaningful bounce. We are left to wonder what happens next, and to be honest, I wish there was more clarity, but there is hardly and identifiable pattern to lean on in either the S&P 500 or the NASDAQ 100.
It leaves me mean leaning on the concept that the April uptrend is broken, and that to me is a significant enough of a change in trend to think that this a market heading lower, not higher. Just from an RSI and Bollinger band perspective, the index is not oversold, and for now, the 50-day moving average seems to be offering some support, while the 21-day moving average is acting as resistance. Meanwhile, the nine and 14-day moving averages are now rolling over. Typically I wouldn’t say I like to lean on the moving averages for support levels, but I know some people do. My expectation is that it will give way.
Nasdaq (QQQ)
Meanwhile, the Qs fell today and are now trading below their 50-day moving average, which acted as resistance. So go figure.
Apple (AAPL)
The more significant concern is what is taking place is in the big technology names, like Apple, which is trading right around support at $109. If Apple breaks support, there is a long way to drop. Again, I noted the bearish betting in the stock the other day, and the possibility the stock could drop $96. (Premium content – Apple’s Stock Declines May Only Be Starting)
Facebook (FB)
Facebook did break support and now runs the risk of fill a gap down around $235.
Netflix (NFLX)
Finally, Netflix fell below $475, and I think that sets up a potential push lower towards $450.
Have a good night!
-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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