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January 15, 2020
Stocks – SQ, PYPL, MU, SBUX
Macro – SPY
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S&P 500 (SPY)
Perhaps the market is tired, some, I’m not sure. For the second day in a row, stocks managed to fade, giving back the majority of the gains. It doesn’t take much in the way of newsflow to get the algo’s taking prices lower. It is hard to tell sometimes on a day to day basis just what the underlying story is for the broader trend. It seems fair to say that the S&P 500 is trying to stay as close to the uptrend as it can without breaking it. Well, for now, anyway.
If the uptrend is violated, it could result in a pretty and sudden fall to support at 3,250 and then to around 3,230.
Despite all the optimism, I have seen signs that some are preparing for a return to volatility or a atleast a move low in equity prices. I reviewed this in my morning audio commentary for subscribers. Again, it could merely be the buying of protection, but it is hard to ignore and must be on the radar. Volatility On The Rise? Morning Commentary 1.15.20
Again, I’m not saying anything significant is about to happen, but one needs to be on notice and looking for the signs.
Square (SQ)
Square managed to pop its head above $70, which is a good sign. The trend still points to higher prices, and so perhaps $75 is next.
PayPal (PYPL)
PayPal continues to work its way higher to fill the gap at $118.
Micron (MU)
Micron fell today, but again, the stock continues to hold support. At this point, that is all that matters. A drop below support at $55.60 means the stock goes to $52.75. Let us hope that doesn’t happen, I don’t want to be wrong with my call for the stock to rise.
Starbucks (SBUX)
Starbucks is challenging resistance at $91.50, and perhaps there is some further upside to around $93.35.
That’s all for today.
-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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