Subscribe to receive this FREE daily commentary directly in your email
January 21, 2020
Stocks – NFLX, ROKU, SHOP, BA, MU
Macro – SPY
Michael Kramer and the clients of Mott Capital own NFLX
Premium Subscriber Content- First 2-Weeks Are FREE To Try, Cancel If You Hate It, I Won’t Even Ask You Why
- Market Filling Gaps?
- VIX Betting Suggests Volatility Spikes
- Which Way Will Momentum Take The Market On Jan 21. – Morning Commentary
S&P 500 (SPY)
Stocks had a down day with the S&P 500 falling by roughly 25 bps, and closing around 3,320. But more important is how the index managed to struggle around resistance in the 3,325 to 3,330 region. The big question will be what happens at the uptrend, also known as the upper side of the rising wedge, with the potential for the first test of support around 3,300.
Premium content – VIX Betting Suggests Volatility Spikes
I noted on the mid-day update to be careful that it appeared the market was merely filling gaps, and it looks that is what happened today. So we need to be cautious because there are several signs that suggest a change of trend may be occurring. Premium content – Get the first two weeks for free Market Filling Gaps? Cancel if you hate the service!
Netflix (NFLX)Â
If the competition of streaming media services is hurting Netflix, they sure didn’t show up in today’s results with net additions of 8.7 million. The only reason I think the stock is trading slightly lower is that the guidance for the first quarter came in lower at 7 million. But the first quarter historically is the best quarter of the year for the company, so we will have to wait to see if they are low balling their guidance. Anyway, I thought the results were good, and the company is projecting, easing negative free cash flow for 2020. Nevertheless, the stock seems to be hardly responding. These results certainly didn’t make me grow more bearish so my view of its rising to $360 hasn’t changed.
Roku (ROKU)Â
Roku increased by about 5% to finish the day around $136.75. My problem is now the stock is right on that trend line, and that doesn’t make me feel too great. It tells me we find out a lot tomorrow, in terms of what is next for this stock.
Shopify (SHOP)Â
Shopify was up sharply rising by around 2.5%. However, the stock looks like it may be ahead of itself, and I noted on the midday commentary today, that I thought the stock was likely heading lower to around $420.
Boeing (BA)Â
Boeing finished the day below $317.50, and that has been an important level of support in the past, and now it is broken. The trends appear to suggests that the stock continues to move lower perhaps to $297.
Micron (MU)
Micron had a good day closing above resistance at $58.65. It is a good sign and could be a sign that the stock is finally getting ready for the stock to make that move to $61.40.
Until Tomorrow
-Mike
Mott Capital Management, LLCÂ 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.Â
Subscribe to receive this FREE daily commentary directly in your email
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.
Trump Is Going To Break Everyone... LOL
Mott Capital's Market Chronicles 15 hours ago