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APRIL 20, 2020
Stocks – AMZN, NFLX, INTC, JPM, SQ
Macro – SPY, QQQ, OIL
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
Stocks finished the day lower by a modest 1.8% on the S&P 500. In regular times, that would be a lot, but these days aren’t normal times by any stretch of the imagination. How could they be when the front-month contract for oil fell to NEGATIVE $36. That’s right; the buyer of oil got paid to take it off the seller’s hand—strange world. It just goes to show you how much supply there is versus the weak demand, and nowhere to store the stuff.
S&P 500 (SPY)
Anyway, the S&P 500 managed to finish the day at 2,823. Again, I am no fan of this market, and the chart appears as if maybe finally ready to roll over. You can see yet another rising wedge pattern forming for the S&P 500, and one these days, it most certainly is going to lead to a decline. But don’t worry, the first leg lower shouldn’t be too bad, there is some support around 2,761.
NASDAQ (QQQ)
The Nasdaq also finished the day lower, but just 1%. More importantly, the NASDAQ broke a significant uptrend, and it could result in a drop back to around 8,185.
Square (SQ)
At least for today, I saw some bullish options betting in Square. The chart looks constructive, but again this market is hard to get right these days. You read more in my premium areas Square May Continue To Climb
Amazon (AMZN)
Amazon is still showing signs of topping out, with an RSI declining, and now volume levels waning. I talked about this today in the midday update. The first level of support comes at 2,275. Premium content – Gaps Filling, Late Day Fade? – Midday Update
Netflix (NFLX)
Netflix will report results tomorrow, and I think everyone would be surprised if subscriber growth weren’t healthy. The big question is, how long will it be until they resume production and what is their free cash flow. Remember, they carry a decent amount of debt. Like Amazon, Netflix has an RSI trending lower, and volume levels are also falling. They report results tomorrow night.
Intel (INTC)
We should keep an eye on Intel tomorrow, the stock fell through the uptrend today, and that could set up a test of support at $55.90. They report results this Thursday.
JPMorgan (JPM)
The chart for JPMorgan doesn’t look very strong, and the uptrend in the RSI appears to be at risk. I’d watch closely at the uptrend around $88. A break of that trend sends the stock back to its recent lows.
Have a nice one!
-Mike
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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.
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