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June 26, 2020
STOCKS – DIS, AMD, FB
MACRO – SPY, QQQ
Mike Reading The Markets Premium Content – $35/Month or $300/Year
- Facebook Adding Fuel To Fire – Midday
- Disney Shares May Plunge By Up To 14%
- Winds Are Swirling
- Stock Testing Critical Resistance
- Stocks Face A Challenging And Important Day – Morning
- Betting On A 10% Drop In AT&T
- Nasdaq 100 May See A Sharp Reversal Short-Term
- Betting Indicates Facebook Falls
- The New Week Faces Headwinds – Morning
S&P 500 (SPY)
Stocks had a very rough day with the S&P 500 falling 2.4%, and finishing the day off at 3009. The index closed at the lows of the day, it attempted to rally in the final 30 minutes, but that giant Russell rebalance just finished off was a terrible day. There was a monster sell imbalance of over $5 billion and just sent everything sharply lower in the final minutes of trading.
The next significant level is the 2,960 level in the S&P 500. That is the low of last week, and based on the breakdown in the RSI, we likely to get there to start next week. The uptrend for the RSI is totally shattered, and more critical is that the RSI fell below its own level of support today.
NASDAQ (QQQ)
The more significant question is what will become of the Qs. The index closed right on support at $240, and that alone is not enough to tell us what happens next. But look at the RSI and that downtrend. I’m going to do more work on this, but I don’t see how the NASDAQ can rise and the S&P 500 fall; they have too much in common up top. If that uptrend breaks, and we close below $240 on Monday, it will not a good sign of things to come. I have been talking about this most recent turn since Tuesday – Nasdaq 100 May See A Sharp Reversal Short-Term.
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Facebook (FB)
Facebook was crushed today, as companies start pulling ads from the platform. The only saving grace was that the stock did not close below support at $213. I think that level is in jeopardy, with a drop to $195 more likely. Volume most certainly returned. Again options traders were betting on June 22 the stock would drop. It looks like they were right. I noted in a subscriber write-up. – Betting Indicates Facebook Falls
Disney (DIS)
Disney saw bearish options betting today too, and it seems likely the stock goes sub $100. Premium content – Disney Shares May Plunge By Up To 14%
AMD (AMD)
AMD got crushed today as part of the Russell rebalance; there were a few million shares to sell, which took the stock sharply lower, with nearly 15 million shares trading just on the closing cross. Wow.
Ok, that’s all…
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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