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STOCKS – CVX, AAPL, NVDA, DIS
MACRO – SPY, EWG, OIL
MICHAEL KRAMER AND THE CLIENTS OF MOTT CAPITAL OWN AAPL
MICHAEL KRAMER OWNS IWM AND XLK PUTS
Mike’s Reading The Markets Premium Content:
- Gaps Filling, Late Day Fade? – Midday Update
- Square May Continue To Climb
- OIL DROPS, EUROPEAN CREDIT RISKS, BETTING STOCKS FALL – MORNING COMMENTARY
- Equities May Continue To Rally Despite Disconnect- Week Ahead
This morning we got the ZEW Economic sentiment survey out of Germany, and the good news is that business sentiment increased in April. However, the economic situation has worsened. Experts in the survey do not believe growth will return until the third quarter, but not expected to return to pre-coronavirus levels until 2022! Whoa!
Germany
10-year yields in Germany are now back to negative 50 bps, and trending lower. Meanwhile, the DAX index is down 2.5% and is approaching essential support at 10,110.
Yields Rising
Meanwhile, yields in Portugal, Italy, Ireland, Greece, and Spain have been rising! Speaks to the risks that may be getting priced into the market in these economies.
Oil
Meanwhile, oil price continues to come under pressure, with the June contracts now collapsing, trading 24% lower today to $15.50.
S&P 500 (SPY)
The S&P 500 SPY ETF is trading lower today by around 1.60%, and are quickly heading towards crucial support levels around $273. A break of that level could result in things getting ugly. That is the uptrend line that formed off the low, so this is a significant level.
Nvidia (NVDA)
Nvidia is falling below support this around $284, and if that trend holds, then the stock could be heading back to $256.
Apple (AAPL)
Apple is testing support today at $272 after Nomura mentioned there might be delays to the release of the iPhone 12. It could result in the shares heading lower towards $257.
Chevron (CVX)
Chevron is currently testing support at $78.60, with a break setting up a drop to $67.20.
Disney (DIS)
Disney caught another price target reduction today, with Citi lowering its price target to $135 from $161. The stock is sitting on support around $100, with a break sending the shares to $92.85.
Anyway, I guess we will see how the day goes.
-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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