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OCTOBER 18
Stock Mentions: BYND, MSFT, CSCO, VZ, DIS
Macro Mentions: China, Dollar, S&P 500
MICHAEL KRAMER AND THE CLIENTS OF MOTT CAPITAL OWN MSFT, CSCO, VZ, AND DIS
US Markets
- S&P 500 Futures +1
- US 10-Year 1.77%
- Dollar Index 97.50
- Oil 54.53
- VIX 14.10
International Markets
- Shanghai -1.32%
- Nikkei +0.18
- HK -0.48%
- KOSPI -0.83%
- Germany +0.17%
- UK +0.17%
MACRO
Most markets in Asia were lower following China’s third quarter GDP print of +6%; it was the country’s slowest GDP grow in almost 30-year! And below expectations!
Dollar
The dollar continues to weaken, and again this is a potentially massive tailwind for the US economy. It also should tell us something about what the currency is thinking about the future of economy and interest rate policy against the rest of the world. A weaker dollar would suggest to me that rates in the US will still be heading lower. If the DXY can fall below 96.50, then things will get interesting. The 200-day moving average has been acting as support.
S&P 500 Futures (SPY)
The futures are flat, and the chart is showing the S&P is now trading below the uptrend line, and now the falling wedge pattern is entirely in place. It would suggest that the index declines to around 2960 in the futures contracts. A drop will likely only be a short-term move lower, so don’t freak out! A Massive Stock Market Break Out May Be Near If History Proves Correct
STOCKS
Beyond Meat (BYND)
Beyond Meat is falling today and is now trading around $115. I still see the gap fill at $100 happening.
Microsoft (MSFT)
Microsoft was resumed with an Outperform and $160 price target at RBC. The stock continues to trend higher and is getting closer to breaking out at $142.
Cisco (CSCO)
Cisco has held support around $46 firmly, and now maybe it can move back to $49.
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[youtube-feed feed=7]Verizon (VZ)
Maybe one day, Verizon can get over $61. When it does, it can move on to $64.
Disney (DIS)
Disney looks ok here and bounced back from what looked like could be a steep sell-off. Premium content – Here’s Why Disney’s Share May Climb – 2 weeks for free, nobody cry’s or nags you to stay if you hate the service.
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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Charts used with the permission of Bloomberg Finance L.P. 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.