Subscribe to receive this FREE daily commentary directly in your email
August 7 – Stock mentions: SPY, FXI, VIX, AMZN, TSLA, ROKU, DIS, PYPL
Michael Kramer and the clients of Mott Capital own TSLA and DIS
It continues to be the wild west of trading with a market that is screaming to go higher. It appears signs are forming that the market is pretty close to racing back to the highs seen last week. The big move higher following this morning steep sell-off would suggest that higher prices may be in the works. I got into a lot of detail today, also noting some options trades in some key ETF’s that indicate the market may be ready to go higher. Signs Of A Market Bottom Are Forming
S&P 500 (SPY)
The S&P 500 sold-off sharply to start August 7, and quickly retested Monday’s lows of 2825. It had seemed the sellers were in control, but by mid-day, that had changed. The S&P 500 managed to hold support at 2,825, creating what now appears to be a bullish reversal pattern known as a double bottom.
To be sure, we still need to see the S&P 500 rise above December uptrend. That would open a gap fill up to 2,915.
China (FXI)
Another reason I am feeling more bullish on August 7 is after looking through the ETF flows in the options market. What I found interesting is that many put contracts for expiration in August were closed out for the FXI. It would suggest to me that some traders do not see additional downside risk to the China ETF anymore. I discussed these trades in the video mentioned above.
Additionally, the FXI has found a meaningful level of support at $38. I explained this in greater detail in my premium video today.
VIX
The VIX has also taken a significant turn lower and appears to be heading back towards 17. Again, in the video mentioned above, I talked about this too.
Amazon (AMZN)
Moving on, Amazon continues to challenge resistance at $1,800. I continue to think that the stock is likely to trend higher towards $1850.
ROKU (ROKU)
Roku is surging after hours, and I threw my hands up in defeat. I can’t figure this stock out anymore. I have lost my way when it comes to Roku. The numbers look solid across the board. We will see what happens tomorrow when regular trading resumes. Right now resistance is around $110. That pattern is still bearish. Not to through cold water on the bulls celebrating, if the stock can’t get above $110 to $112 tomorrow, I’d be worried.
We’ll see…
Disney (DIS)
Anyway moving on, Disney did fall sharply today, but again this isn’t a quarter by quarter story at the moment. DIS is a 2020 streaming service story. Support at $132 appears very strong, and so I think this will continue to work its way higher back towards $140.
Unlock Deeper Insights with Exclusive Member-Only Video Content on The Market Chronicles YouTube Channel – Just $34.99/Month
[youtube-feed feed=7]Tesla (TSLA)
Tesla has found some strong support at $225, and so I continue to TSLA believe it works its way higher towards $253.
PayPal (PYPL)
PayPal has found some reliable support around $101.50, and it appears that it could work its way higher towards $109.50
Anyway, let’s see how tomorrow goes.
-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.