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September 29, 2020
STOCKS – MU, ZM, AMZN
Macro – SPY, QQQ,
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S&P 500 (SPY)
Stocks fell on September 29, with the S&P 500 and the QQQ ETF falling by approximately 50 bps. The S&P 500 failed to advance beyond the 50-day moving average again and held the downtrend.
The move lower in the S&P 500 this afternoon seemed to correspond with an accelerated sell-off in the corporate bond ETF LQD around 3 pm. Think wider spreads between corporates and treasury rates, risk aversion.
NASDAQ 100 (QQQ)
The Qs continue to struggle to advance beyond $277.
Micron (MU)
Micron reported better than expected fourth quarter results, but first quarter guidance appeared to very light of expectations. The company sees earnings of $0.47 at the mid-point of the range, and revenue of $5.2 billion, with margins of 27.5%. Estimates had been for earnings of $0.69, on revenue of $5.3 billion, and margins of 32.5%.
Now before the pandemic, my instinct suggests Micron would be trading pretty sharply lower on this guidance. Times are crazy, and the stock is flat. I highly doubt that the stock survives tomorrow being flat. I still happen to think you will see $45.50, maybe not tomorrow, but relatively soon.
Zoom (ZM)
Zoom shares are holding on to support at $465. That RSI seems to suggest that Zoom is likely heading to $425.
Amazon (AMZN)
Amazon doesn’t look super strong, with the stock failing around resistance in that $3,160 to $3,175 region. I still think this stock has further to fall. Maybe that comes after a break of $3,100.
That’s it got to run.
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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