Subscribe to receive this FREE daily commentary directly in your email
August 16, 2021
STOCKS – AMZN, MRNA, UPS, FDX
MACRO – SPY, QQQ
- RTM – Will The Fed Taper At The Wrong Time?
- RTM Video – Is This The End Of The Rally?
- RTM – Leverage Financial Conditions Are Getting Tighter
- RTM Tactical Update – Tapering Is Coming, And It May Lead To Equity Market Turbulence
- RTM – 2Q’21 Investor Letter
- RTM – Yields, Amazon, Moderna All Lower
- RTM- Will Inflation Be Hot Enough,
- RTM – A Stronger Dollar Will Weigh On Energy And Materials
The market fell early and then snapped back by day’s end to finish the day higher, with the S&P 500 finishing the day higher by 25 bps, while the Qs finished the day flat.
Overall, it really was a very confusing day as many parts of the market were weak with oil and rates down, following the weaker than expected China economic data overnight. While the bond and oil market seem to be sending warnings about slowing growth, the equity market doesn’t seem concerned at all.
It probably isn’t worth thinking about today’s price action because it is likely to change tomorrow after Powell has his Q&A town hall. It really does seem like the perfect setting for him to hint at what he might say at Jackson Hole next week. One would think there is enough evidence to support a Fed tapering process starting sometime this fall.
S&P 500 (SPY)
The S&P 500 managed to climb to and test the upper end of the trading channel today at 4,475, after falling slightly below the uptrend. This has been the upper end of the trading range since late April; how much longer that will remain the case is yet to be determined.
NASDAQ (QQQ)
On the other hand, the Qs have been range-bound since the middle of July, so nearly a month. I still expect to see lower prices in the Qs in the weeks ahead.
Moderna (MRNA)
Moderna fell to $349 today, and that will mark the end of us talking about this one for some time again. It can still fall further, but for my purposes, I’m done.
Amazon (AMZN)
Amazon fell sharply to start the day and then rallied back. The stock managed to close the gap at $3,200 and then snapped back to $3,300. Given the stock got to $3,200, it is probably best to see what happens from here.
UPS (UPS)
UPS has stabilized around the $190 level, and with a gap to fill around $210, a rebound could be for a little bit.
FedEx (FDX)
FedEx seems to be on the same path with a gap to fill up to $297.
Have a good day.
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.
Subscribe to receive this FREE daily commentary directly in your email
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.
Tight Liquidity And Rising Volatility Signal A Market Inflection
Mott Capital's Market Chronicles 14 hours ago