Subscribe to receive this FREE daily commentary directly in your email
11.27.20
Stocks – PYPL, ZM, ROKU
Macro – SPY,
Mike’s Reading The Markets (RTM) Premium Content – NOW WITH A 2 WEEK FREE TRIAL
- Morning 11.27.20 – QQQ, TSLA, AMD, SAGE, ZM, SPY, VIX, BTCUSD, GLD
- Stocks Still Look Toppy
- Big Bearish SPY Bets Yet Again, Plus A Copper Reversal
- Market May Have To Wait For More QE
- A Blow-Off Top Or More To Come?
- Risk Remain Lower, Plus 5 To Stocks To Watch
Stocks rose on November 27, but it was a half-day session, and not much was really happening. The S&P 500, for now, remains in the same trading range established following the Pfizer vaccine.
The monthly chart seems to offer a unique perspective because the index has a declining RSI and volume. Meanwhile, the index has now traded out of its upper Bollinger band 4 months in a row. That hasn’t happened very often recently.
Additionally, it is even more glaring when you look at the chart for the NASDAQ 100. Where we see the same type of movement above their Bollinger bands. Again, I went through this in great detail in a video. (premium video – Stocks Still Look Toppy)
But the two charts appear to suggest that both indexes suggest the two indexes are in overbought territory.
Meanwhile, the VIX is very close to filling the gap at 18.5, currently falling to around 19.5 today. This unwind in volatility has been a powerful force to the rally, providing a massive tail. It should be interesting to see how the market trades with the VIX back at these lower levels.
Zoom (ZM)
Zoom decided to work towards filling the gap, and that gap is now nearly filled. At $481, the gap will be filled, and it should result in the stock reversing and continuing its move lower.
Roku (ROKU)
Roku is stalling out around resistance at the uptrend, and with falling volume and divergent RSI, don’t be surprised to see this move lower towards $225. (Free content – Roku’s Stock Is Another Insanely Valued Stock)
PayPal (PYPL)
Finally, PayPal is stuck around $214, and I think it will revert the other towards $175.
-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.
Gold Volatility Signals Speculative Behavior
Mott Capital's Market Chronicles September 26, 2025 1:32 PM