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December 11, 2019
Macro: Fed
Stocks: ACAD, SQ, FCX, SWKS, BA
MICHAEL KRAMER AND THE CLIENTS OF MOTT CAPITAL OWN ACAD AND SWKS
Reading The Market Premium Content From December 11 –
- Post Fed Thoughts
- Semis Leading The Charge Ahead Of The Fed
- Netflix Traders Betting On A Rebound
- Fed Day – Morning Commentary 12.11.19
S&P 500 (SPY)
The S&P 500 managed to finish the day higher by roughly 30 basis points to finish at 3,141. The index got a bump following the FOMC rate decision, which was a no change in rates, as expected. So why did the market rise? Primarily, because the Fed has made it pretty clear that the bar for cutting rates is lower than the bar for raising rates. The Fed is going to be more inclined to cut rates at the first sign of weakness and not increase rates should inflation and the economy strengthen.
If that isn’t a bullish scenario for stocks, then I’m not sure what is. I talked about some this more in a post-Fed commentary, going through the dot plot and the story that dots told – Post Fed Thoughts
S&P 500 (SPY)
The interesting thing is that the S&P 500 is starting to show some resemblance of a pennant formation, a bullish continuation pattern. It does suggest that the market is likely to move higher tomorrow, and potentially move on to new highs.
Skyworks (SWKS)
Skyworks had a big day along with the entire semiconductor sector. The stock is now reaching overbought levels and is near resistance. This is likely a perfect place of the stock to consolidate, especially if it is going to continue higher.
Boeing (BA)
Boeing fell sharply today but recovered all of the losses by days end. But it appears to be more of a gap-fill then anything. This one may still have further to fall.
Acadia (ACAD)
Acadia continues to fall, and it is filling a gap. Yesterday I was not careful enough when evaluating how much more it needed to fall for the gap to be closed if we play this by the book it needs to fall to $44.30.
Square (SQ)
Square is sitting on support at $65.50, and I think it can fall to around $62.
Freeport (FCX)
Freeport had a strong day following surging copper prices higher, with $13.20 acting as the next major resistance level.
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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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