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JANUARY 31, 2020
STOCKS: AMZN, SHOP, NFLX, WDC, UBER
MACRO: SPY
MICHAEL KRAMER AND THE CLIENTS OF MOTT CAPITAL OWN NFLX
S&P 500 (SPY)
Stocks are pointing to a lower opening to finish out the month after that significant reversal yesterday afternoon. But it seems like the S&P 500 at this point is just riding the trendline, and as long as that remains, I don’t see any reason for that to have changed. I did a whole video for subscribers yesterday, showing the signs the market was delivering that suggests that the worst of the sell-off was likely over, and I continue to believe that is the case. Premium video – It Sure Feels Like The Markets Have Bottomed
You can see what appears to be a nice double-bottomed in the futures; we need to see resistance at 3,295 taken out.
Amazon (AMZN)
Amazon shares are jumping after its big beat on earnings. The company does a beautiful job of playing Wall Street better than any company in recent memory. Setting expectations low, and just every once in awhile reducing spending just enough to give investors a taste of what is possible. Anyway, I had noted over a week ago, the stock was likely to jump following results, and then I saw some last-minute options bets being made yesterday on top of it at the January 31 $1850 and $1860 calls, which implied a jump over $1900. Good for the options, guys. Premium content – Support Is Holding, Now Is It Time To Fill The Gap Higher?
$2060 may very well act as resistance today, with that giant gap being created, be mindful of the gap.
Western Digital (WDC)
Western Digital is rising today after reporting better results, and a bunch of price target increases. The stock acts strong, and has held support around $66, and is likely to reach out options traders break-even prices, and the next level of resistance at $76.
Shop (SHOP)
Shop appears to be getting a boost from Amazon’s results and seems to be breaking out finally. The company reports results on February 12, and given the price action, and how hard it has fought at the $477 level, it is likely not one you want to bet against at this point. So let’s move on and admit defeat.
Uber (UBER)
Uber was initiated at JPM today with a $51 price target. The chart looks increasingly bullish, and I will be watching for the options bets on this one, they are sure to come. The next level of resistance may not be until $40.60.
Netflix (NFLX)
Finally, I noted the other day, the big spread transaction in Netflix that indicates that $340 is likely to be a floor in the stock. So far that seems to be the case, I think the stock is going to challenge the downtrend and resistance at $362. Premium content –Why Netflix Stock May Have Bottomed
Have a great day
-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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