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September 22, 2020
STOCKS – XOM, CVX, AMZN, FCX
Macro – SPY, QQQ, FXE, UUP
Mike’s Reading The Markets (RTM) Premium Content – NOW WITH A 2 WEEK FREE TRIAL
- Stock Mount Weak Rally, Watch For Afternoon Fade- Midday
- Dead Cat Bounce – Morning
- This Is A Different Sell-Off
- The Market Has Little To Support It
- The Second Leg Lower – Morning
- 10 THEMES FOR THE WEEK OF SEPTEMBER 21
- Nvidia May Drop 15% More
S&P 500 (SPY)
The S&P 500 managed to stage a nice comeback today, rising to and closing the gap, as mentioned earlier today. The big question is where things go from here, and depending on how we open tomorrow will determine where we go next. Either way, the upside is minimal here because the downtrend and resistance around 3,340 are powerful.
What should happen tomorrow is a move lower. Typically once a gap is filled, it resumes the previous trend, which is down.
Nasdaq 100 (QQQ)
Additionally, the upside in the Qs is limited, with some additional room up to $274-275. 
Dollar (UUP)
The dollar rallied today, clearing and holding on at 93.95. It likely continues to push even on higher, towards 96. 
Euro (FXE)
The euro also broke some support today, and that is going only further to strengthen the dollar.
Exxon (XOM)
The stronger dollar will continue to crush the commodity-based names, with Exxon falling today and likely heading back to its March lows.
Chevron (CVX)
Meanwhile, Chevron broke and likely heading lower too, probably $67.20.
Freeport (FCX)
Freeport is likely to break as well, and head back to $14.90, and potentially $12.70.
Amazon (AMZN)
Amazon managed to push higher today, but not much was accomplished because the stock once again is back in a zone of resistance between $3,100 and $3,200. Maybe it tests the upper bound, but I still think this one is likely to reverse lower over the next few days. Once stocks break a strong level of support, those levels become substantial levels of resistance.
Take care
-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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