Stocks Jump As Old News Becomes New News All Over Again

This column is my opinion and expresses my views. Those views can change at a moments notice when the market changes. I am not right all the time and I do not expect to be. I disclose all my positions clearly listed on the page, and I do not trade my account on the stocks spoken of in this column unless fully disclosed. If that does not work for you stop reading and close the page. Do not bother me or harass me.

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July 15, 2020

STOCKS – AMZN, NVDA, SPLK

MACRO – QQQ, IWM

I wrote this on my iPhone sorry for typos etc…

Mike Reading The Markets Premium Content – $35/Month or $300/Year

 

Stocks jumped higher today on the new news about the old news from Moderna and its vaccine. The Russell IWM ETF was the best performing index, and to some degree, that does make sense given the news we already knew from Moderna. 

It is kind of odd how Moderna rose just slightly more than the IWM. It kind of tells you how the Moderna news was not that stimulating. Look, I’d love a vaccine, but I want real data that shows real efficacy and safety. Not some fluff piece based on phase 1 hope, I have seen too many drugs produce significant Phase 1 hope to fail in Phase 3. 

The IWM was strong but failed when it had to break out. So we’re left to wonder if the IWM can break out and push higher.

The Qs have been struggling this week. They ran up way too much. There is nothing wrong with a healthy pullback to the lower end of the channel. Option betting has been bearish since last week, so I think one needs to remain on guard.



Amazon (AMZN)

Amazon saw some bearish betting, too, just today. The company never cares about meeting wall streets expectation, and it has served them well.  The stock is likely to continue lower, probably to around 2800. (premium content – Amazon Traders Betting Shares Plunge Following Results)

Nvidia (NVDA)

The bearish bets for NVIDIA continue to pile up. I still think this one goes to 380, maybe lower. 

Splunk (SPLK)

Meanwhile, Splunk continues to look very weak. If this software sector goes, the market may be in trouble. I think Splunk does go lower to around $170. (Premium content – Warnings Signs Grow)

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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