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September 30, 2020
STOCKS – BKNG, INTC, SHOP
Macro – SPY,
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That was one of the most bizarre trading sessions I have witnessed in some time, with future sharply lower overnight and then zooming higher after the open, to come crashing down in the final hour or so. There was a nearly 3% range on the S&P 500 futures from bottom to top, hoping for a stimulus deal.
The futures finished the day below the downtrend and below the moving average. It gives me the sense of a failed breakout attempt. But with a lack of confirmation from the S&P 500 cash market, we are left to wonder what tomorrow holds. My feeling is that the futures drift lower overnight; we can put this into the camp of a failed breakout for the S&P 500 cash market too. If that is the case, we should find ourselves trading back below 3,300 relatively soon.
Booking.com filled the gap at $1,725 and appeared to be forming a bullish ascending triangle. Perhaps it leads to an advance to $1,795.
Intel is very close to making a big move, potentially higher. It is now flirting with a break out at $52.20. If that happens, it has a big gap to fill. The RSI continues to trend higher, and momentum is entering the stock. It looks 50/50 now, but a break of resistance will be a big plus for Intel.
Shopify keeps losing more and more momentum. The stock’s RSI continues to move down, and I think this one is heading below $850. This is a hunch on my part. Typically, when you see such a negative pattern on the RSI, the stock price isn’t too far behind.
We’ll leave it there. I have only been working half days this week :).
-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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