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October 1, 2020
STOCKS – AMZN, AAPL, DIS, SQ, DOCU
Macro – SPY, QQQ
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- Copper And Oil Giving The Big Tell?
- Watch For Reversal, As Bull Run Isn’t Likely To Last
- Stimulus Hopes Boost Markets
- Well, That Was Interesting.
- More Negative Signs For Micron Ahead Of Results
- Stocks Still Held Below Critical Resistance
MICHAEL KRAMER AND THE CLIENTS OF MOTT CAPITAL OWN AAPL
Sorry about missing this morning. I had a write-up nearly complete, but then my 10-week old Golden puppy decided to try to chew the corner of the screen, and well, the story was gone. That is the one problem with having touch screen laptops. Babies and dogs seem to have a way of making work disappear with the slightest of touches.
It happens…
S&P 500 (SPY)
Anyway, going through my daily charts today, I notice a rather remarkable pattern forming off the S&P 500 and NDX futures. A rising wedge or bear pennant starting. The bear flag in the S&P 500 appears to be essentially the same as the one formed at the beginning of September. It is about as bearish of a pattern one can get, couple that with what appears to be extreme resistance at roughly 3,415ish, and the S&P 500 might have found this mini-rally is near its end.
NASDAQ 100 (QQQ)
The pennant isn’t as nicely packaged on the Nasdaq 100. Regardless the rising wedge pattern is present, and that in itself is bearish. I’m not projecting yet how far of a decline it could be, but guesstimate currently is about 6ish%, probably worse.
Amazon (AMZN)
Amazon has the same pattern, and if that is the case, then a drop back to that $2,800-2900 region is likely just the first stop for the stock.
Apple (AAPL)
Apple has a rising wedge in it as well, and that stock is likely to revisit its September lows.
Disney (DIS)
Disney is very close to breaking down, with it sitting on an uptrend at $123. Once it breaks, I expect it to fill the gap down at $114.
DocuSign (DOCU)
Interesting pattern on Docusign. I have been waiting for this one to break $188.50. I think it will, maybe on this upcoming drawdown. It a rising wedge pattern, by the way.
Square (SQ)
Square has a bearish divergence with the RSI trending lower, and the stock rising. I think the stock is nearly finished rising though, with a potential double top pattern forming, or a failure at resistance around $180 at the trend line.
Have a good one
-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.
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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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