Subscribe to receive this FREE daily commentary directly in your email
APRIL 2, 2020
STOCKS: TSLA, WORK, ZM, SHOP
MACRO: SPY, OIL
MICHAEL KRAMER AND THE CLIENTS OF MOTT CAPITAL OWN TSLA
Mike’s Reading The Markets Premium Content $35/month or $300/year
- STOCK MARKET RALLY MAY FADE
- Jobless Claims Soar, More Bearish Betting On SPX
- Data, Earnings, Techincal Suggest Lower Prices For Stocks
Oil
The S&P 500 rallied today, recouping about half of yesterday’s losses, rising by about 2.25%. The rally today came at the surprise of many after the giant surge in initial jobless claims. However, the big surge followed a big jump in the price of Oil on hopes the Saudi’s and Russian can agree on an output cut. Yet, Oil still has a long way to go to get back into the $ $40s. Even with today’s rally, oil is still only trading around $25.
S&P 500 (SPY)
The S&P 500 managed to finish the day right at resistance around 2,525. It was a level the index failed at yesterday and continues to be the level the index at failed today.
It seems possible that the index could rally to around 2,570, but it is where two robust levels of resistance live. An increase above that level would be a big positive. I’m just not sure that a break out above 2,570 is in the cards.
As I have noted in the last two days, I have seen some significant options bets that indicate that the S&P 500 heads lower from these levels. I talked about it yesterday in my morning commentary for subscribers, and again in a free article today. We will see.
The futures are pointing to a decline of about 50 basis points tomorrow.
Tesla (TSLA)
Tesla is moving sharply higher tonight after reporting better than expected deliveries for the first quarter. The numbers looked impressive to me, considering that the Shanghai factory was closed for some time in February, and the Fremont factory was closed the last two weeks of March. The mystery will be what the second quarter will be, but if anyone can figure out how to get cars to people, Elon Musk can.
The stock jumped to resistance at $550 and stopped. That is resistance for now, with a break out sending the stock to $595.
Shopify (SHOP)
Not to beat up on Shop, but the stock fell sharply after pulling its 2020 guidance. It also fell below crucial support $360, and I think that puts $315 back into play.
Zoom (ZM)
Zoom is starting to look like some of those bubbly stocks everyone was complaining about in February. I know, I thought it was heading lower at the beginning of March, but now it looks even more ridiculously overvalued. I think it falls back to support at $105. The security and privacy stuff sounds like a real concern.
Slack (WORK)
Slack fell even further than I thought that it might, now testing support at $24. With the potential to fall even further, maybe to $21.
Anyway, that’s all its getting late.
-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.
Subscribe to receive this FREE daily commentary directly in your email
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.
Assessing Whether Settlement Signals Still Hold - Advanced Topics
Mott Capital's Market Chronicles November 28, 2025 5:38 PM