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July 29, 2020
Stocks – MSFT, MU, GE
Macro – SPY, QQQ
Mike’s Reading The Markets (RTM) Premium Content – $35/Month or $300/Year
- Fed Paints A Gloomy Outlook
- Bets Pile Up Micron Falls As Much As 10%
- It All About The Fed, And Bets Are For Less Liquidity
- Downward Trend Are Still In Place
- Stock A Bit Weaker – Morning Commentary
- Recent Move Lower Likely To Continue- Midday
- S&P 500 Put Buyers + Dollar’s Gloomy Message
MICHAEL KRAMER AND THE CLIENTS OF MOTT OWN MSFT
Stocks rose today, despite falling yields and a weaker dollar, and a less than stellar outlook from the Fed. The equity market seemingly continues to ignore many of the concerns, but that’s ok, we are used to it. Nothing matters, I know, until it does.
Tomorrow we get initial claims, the second-quarter GDP. It should be interesting.
Chairman Powell confirmed much of what we knew already, which was that economic recovery is already slowing. Of course, there is no way to know if this is temporary or something more. The bond market didn’t like the message with yields dropping back to 57 bps, and the dollar index dropping to 93.25. The message bonds, and the dollar is not calling for sunshine and roses. The move higher in gold and silver is not about inflation. Powell even said today, which I have said multiple times, is that the greater risk is deflation.
I continue to track a lot of bearish betting in the SPY and QQQ. The activity in the Qs has started to slow some, while the SPY has been picking up. Perhaps, I will be wrong, but the message I am getting from the market has been somewhat concerning. I have been wrong plenty of times and seems like over the past four months more than I have been right. But I have been doing this a long time, and sometimes that happens. (Mike’s premium content – It All About The Fed, And Bets Are For Less Liquidity)
Dollar
The dollar is sitting on a considerable level right now.
NASDAQ 100
You don’t want to see the NASDAQ 100 NDX cross 10,400, that is for sure.
Microsoft (MSFT)
Microsoft just continues to hug the uptrend for now.
Micron (MU)
I saw more bearish betting today in Micron, which setups the potential for the stock to fall to $45.50. (Mike’s RTM premium content – Bets Pile Up Micron Falls As Much As 10%)
GE (GE)
GE managed to finish the day just above support, and so it lives to fight another day, and the reverse head and shoulders pattern remains.
Anyway, 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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