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September 14, 2020
STOCKS – NVDA, MU, AMZN, ORCL
Macro – SPY, QQQ
Mike’s Reading The Markets (RTM) Premium Content – NOW WITH A 2 WEEK FREE TRIAL
- A Downtrend Is Born
- Gap Higher, Fill Lower? Morning
- 9 Themes For The Week Of September 14
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- My Portfolio Breakdown -Entry Spots
- When Adjusting For Growth The S&P 500 Is It Most Expensive In 40 Years
S&P 500 (SPY)
Stocks were mostly higher today, but the rally ran out juice around lunch, and it was more about maintaining the gains, then adding on to them. The S&P 500 finished the day higher by around 1.2%. But it seems there is now a downtrend that has formed in the index. If that is the case, then today’s rally should vanish rather quickly tomorrow, with a fill of the gap from Friday to 3,340. (Premium content – A Downtrend Is Born)
Nasdaq (QQQ)
Meanwhile, the Qs have the same kind of pattern with the lower trend line, with the potential to refill the gap at $270.
Option Volume
How the rest of the week goes will mainly be dependant upon the Fed on Wednesday and Quadruple witching on Friday. Call volume was down again, despite the stronger day for stocks. Put volume was weaker too, but that is to be expected on a stronger day.
(Trade Alert)
Call volume was the weakest since the middle of August. The weaker call volumes could be one reason why it feels like some of the thrust in the market isn’t there. The dealers don’t have to hedge as much stock.
(Trade Alert)
Amazon (AMZN)
It was also a weaker day for Amazon despite the significant market gains. The stock opened higher and filled the gap by days end, finishing around support at $3,100. That support level continues to be a battleground for Amazon, with a break of support triggering a decline to around $2,800.
Nvidia (NVDA)
Nvidia gapped, higher, and I don’t expect it to last after investors have time to digest the ARM deal. Nvidia paid a lot for ARM, at nearly 20 times sales, and the deal is dilutive to shareholders, with Nvidia pay a large portion in stock.
Micron (MU)
Micron rallied today following that upgrade but couldn’t quite get past resistance around $49.80. My immediate reaction is that the stock works to fill that gap lower.
Oracle (ORCL)
Oracle is hitting up against resistance around $61, with a potential break out sending the stock higher to $66. I noted some bullish betting suggesting the stock continue to rise, even though it is the preferred technology provider to TikTok in the US, whatever that means, and not the owner of TikTok. Oracle’s Stock May Have Even Further To Climb
Have a good one!
-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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