Stocks Fall For A Second Day, As Key Support Levels Approach

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.

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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: 

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. 

dax

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.PIIGS

Oil

Meanwhile, oil price continues to come under pressure, with the June contracts now collapsing, trading 24% lower today to $15.50.

oil

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.

spy

Nvidia (NVDA)

Nvidia is falling below support this around $284, and if that trend holds, then the stock could be heading back to $256. 

nvidia, nvda

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.

APPLE, AAPL

Chevron (CVX)

Chevron is currently testing support at $78.60, with a break setting up a drop to $67.20. 

chevron, cvx

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. 

disney, dis

Anyway, I guess we will see how the day goes. 

-Mike

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.  

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