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.
Otherwise, enjoy the column!
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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
- S&P 500 Futures +1
- US 10-Year 1.77%
- Dollar Index 97.50
- Oil 54.53
- VIX 14.10
- Shanghai -1.32%
- Nikkei +0.18
- HK -0.48%
- KOSPI -0.83%
- Germany +0.17%
- UK +0.17%
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!
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
Beyond Meat (BYND)
Beyond Meat is falling today and is now trading around $115. I still see the gap fill at $100 happening.
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 has held support around $46 firmly, and now maybe it can move back to $49.
Maybe one day, Verizon can get over $61. When it does, it can move on to $64.
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.
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.