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June 29, 2020
STOCKS – MU, FB, TSLA
MACRO – SPY, HYG
Mike Reading The Markets Premium Content – $35/Month or $300/Year
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The Fed’s Falling Balance Sheet Could Spell Trouble
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RISK IS BUILDING- MIDDAY
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Facebook Is The Key Today’s Market – Morning
- THE WEEK OF JUNE 29 WILL BE CHALLENGING
- Earnings Trends For June 27
- Facebook Adding Fuel To Fire – Midday
- Disney Shares May Plunge By Up To 14%
- Winds Are Swirling
MICHAEL KRAMER AND THE CLIENTS OF MOTT CAPITAL OWN TSLA
It wasn’t the most vigorous trading session despite a 1% rally in the S&P 500. The real action came in the after-hours when it rallied another 50 or so basis points after Powells issued a statement ahead of his testimony for Congress tomorrow. There was nothing new said, but still, the algo’s took the index up. It will give us a chance to find out if the market can advance much beyond 3050 or not. For now, the futures have been unable to advance beyond that level of resistance.
The 10-year yield fell below support at 63 basis point late today, and I think that is a negative sign for the yields and potential the equity market. It likely suggests the 10-year drops to around 55bps.
I am a little bit concerned that the HYG and JNK ETF’s are trending lower as the yields are moving lower too. The falling ETF values indicate higher yields for the ETFs. That means spreads are widening, and that usually isn’t a good sign for equities. I talked about this more in the midday update – premium content – RISK IS BUILDING- MIDDAY
Micron (MU)
Micron reported better than expected results and gave better guidance, which was surprising to me. It wasn’t what I was expecting. For now, the stock has jumped to technical resistance at $52.75 and failed at the moment. We will see what happens during the normal trading session. This stock doesn’t have the greatest history of holding post-earnings rallies. Plus, $52.75 has been a tough level for some time.
Facebook (FB)
A bunch of other companies decided they were going to start pulling ads from Facebook as well. The stock’s next significant level is at $222.
Tesla (TSLA)
Tesla looks as if it may getting ready for its next leg higher, potential to as high as $1200. The company is nearing profitably for the quarter, according to reports.
That’s all
Mike
Mott Capital Management, LLC is a registered investment adviser. Information presented is for educational purposes only and does not intend to make an offer or solicitation for the sale or purchase of any specific securities, investments, or investment strategies. Investments involve risk and, unless otherwise stated, are not guaranteed. Be sure to first consult with a qualified financial adviser and/or tax professional before implementing any strategy discussed herein. Upon request, the advisor will provide a list of all recommendations made during the past twelve months. Past performance is not indicative of future results.
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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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