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APRIL 22, 2020
STOCKS – QCOM, NFLX, AMZN
MACRO – SPY, XLK, QQQ
MICHAEL KRAMER OWNS IWM PUTS
MIKE’S READING THE MARKET PREMIUM CONTENT:
- STOCKS LOOKING TO JUMP, BUT RESISTANCE MAY BE TOUGH
- Bearish Betting Continues In Qualcomm
- On The Wrong Side Of The Trendline
S&P 500 (SPY)
Stocks had a solid day, rising by, what has become the usual 2%. In a stunning twist of fate, the S&P 500 was never allowed to get back above the uptrend it broke yesterday. It was like the algo’s were only willing to give the buyers so much. So we just ground higher all-day, moving up along the trend line. It was pretty amazing to watch.
Technology (XLK)
The XLK Technology ETF was able to fill the gap created from yesterday’s sharp drop, but not a decimal point more.
NASDAQ 100 (QQQ)
The Q’s saw the same price action.
Closing Cross
But the best was saved for last. With 10-minutes left in the trading session, there was a buy imbalance worth a little more than $2 billion. With all those buyers locked, the sellers just moved in a show of force, resulting in the index dropping by about 60 basis points.
Overall, the S&P 500 has gone pretty much nowhere since April 6. Tomorrow we get jobless claims, and they are expected to be a significant number once again with another 4.2 million people filing for unemployment. I think that gets us to around 25 million. The US labor force is approximately 162 million, and I think there had been about 3 or 4 million unemployed going into this disaster. So we could have almost 30 million unemployed, getting us pretty close to 20%. That isn’t counting all of the people that work off the books. It is stunning and unfortunate.
Qualcomm (QCOM)
I saw some more bearish betting today in Qualcomm, and I think the stock could be heading towards $65. Premium content – Qualcomm’s Big Advance May Be Over
Netflix (NFLX)
Netflix can confirm a double top if it falls below that $415 level, and it likely triggers that move lower to around $385 I have been looking for.
Amazon (AMZN)
One should look at Netflix as an example of what may be coming to Amazon. Amazon may put up big numbers or provide fantastic guidance for the second quarter but it is expected. So, you can very quickly get a sell the news event after Amazon reports. Something to think about. For now, I’m targeting 2,185.
Anyway, that’s going to be 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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