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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