This column is my opinion and expresses my views. Those views can change at a moments notice when the market changes. I am not right all the time and I do not expect to be. I disclose all my positions clearly listed on the page, and I do not trade my account on the stocks spoken of in this column unless fully disclosed. If that does not work for you stop reading and close the page. Do not bother me or harass me.
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March 31, 2020
Stocks – AAPL, AMD, MU, BAC
Macro – SPY
MICHAEL KRAMER AND THE CLIENTS OF MOTT CAPITAL OWN AAPL
Mike’s Reading The Markets Premium Content $35/Month or $300/Year:
- Afternoon Cirrus Show – Midday Update
- Wild Trading Day In Store – Morning Commentary 3.31.20
- History Suggests Long-Term Trends For Stocks Still Intact
S&P 500 (SPY)
Well, the first quarter is a wrapped up, and it wasn’t good by any account, with the S&P 500 finishing lower by 20%, and about 23.7% off its highs. Now, that rebalancing is over, and a slew of economic data is coming, it will be interesting to see what happens.
What has become clear to me, as I mentioned in the after podcast, the sellers want to keep the S&P 500 below 2,650, and that is apparent after the index failed at that level on several occasions the last few days. Premium content – Afternoon Cirrus Show – Midday Update
There is also a new downtrend I have marked on the chart today, and it seems strong based on trading the last couple of days.
Also another “warning sign” here, is that the S&P 500 is falling on heavy volume and rising on light volume, not a good sign. Indicates that buyers aren’t as plentiful. Also that RSI has now flattened out.
I’m sorry to say; I do not like the looks of the stock market going into the second quarter. It just doesn’t look all that appealing. Then you have the ISM and ADP tomorrow, followed by jobless claims on Thursday, and more ISM and Jobs data on Friday. There is just a lot that can wrong; who knows, maybe I will be wrong.
Apple hasn’t been able to get back over $258, and that is another negative for the S&P 500. It likely means that Apple is heading lower to $234.
AMD fell through a rising wedge and broke support today at $46.25. I think it is setting up the stock to drop to around $42.95.
Micron is sitting on support at $42 with a break sending the stock down to around $39.25.
Bank of America (BAC)
Bank of America has struggled around $22, with a turn lower likely come back towards $18.25.
Have a good one
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.