This column is my opinion and expresses my views. Those views can change at a moments notice when the market changes. I am not right all the time and I do not expect to be. I disclose all my positions clearly listed on the page, and I do not trade my account on the stocks spoken of in this column unless fully disclosed. If that does not work for you stop reading and close the page. Do not bother me or harass me.
Otherwise, enjoy the column!
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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!
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.
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 is falling below support this around $284, and if that trend holds, then the stock could be heading back to $256.
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 is currently testing support at $78.60, with a break setting up a drop to $67.20.
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.
Mott Capital Management, LLC 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.