April 28, 2020
Stocks: GOOGL, AMD, QCOM, NFLX
Macro: SPY
Michael Kramer and the clients of Mott Capital own GOOGL
MIKE’S READING THE MARKET PREMIUM CONTENT –
- Stocks Fall Ahead Of Big Earnings Weeks
- Has The Discounting Mechanism Changed? Morning Commentary
- Stocks Rise Again
- The Velocity Of MZM May Drive Rates Even Lower
S&P 500 (SPY)
Stocks had an exciting day rising by over 1.5% to start the day only to give back all of those gains by days end. The index rose to roughly 2915 and quickly turned lower. The region around 2,900 is where a large amount of open interest on the S&P 500 index options resides, and it would suggest it is an area where dealers are short futures to hedge away their risk. I talk about more in today’s morning commentary. Premium content – Has The Discounting Mechanism Changed? Morning Commentary
That region is likely to continue serving as a healthy resistance level with support around the 2,845 level for now. We can see that the index continues to get rejected at the March low uptrend. Again, there is flattening taking place in the RSI; an is acting as an indication of fading momentum. Also, there is a change in the slope of the advance off of the March lows, notated with the purple lines. The index did manage to finish right at the lows of the day.
AMD (AMD)
AMD is falling after reporting what appears to be inline earnings a weaker revenue, but the guidance looks to be weaker. I will try to get more details later on those results. For now, the stock needs to hold support at $53, to avoid a more profound decline to $50.80.
Alphabet (GOOGL)
Alphabet shares are rising after reporting better revenue on weaker earnings. For now, not much has changed from a technical standpoint.
Netflix (NFLX)
Netflix shares fell sharply after dropping out of the descending triangle and is still likely on its way back to $386.
Qualcomm (QCOM)
Qualcomm will report results tomorrow, and I still think this one heads back to $65.
Ok, that’s all. I have to go write up Alphabet.
-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.