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April 1, 2020
Stocks – BA, GS, NVDA, SHOP, SQ
Macro – SPY, IWM, Oil
Mike’s Reading The Markets Premium Content $35/Month or $300/Year
- Data, Earnings, Techincal Suggest Lower Prices For Stocks
- Stocks Fall, More To Come?
- It’s BAAACK! Let The Selling Begin Morning Commentary 4.1.20
Stocks fell again on April 1, and it seems like the trend lower is now taking over. The market is likely to continue lower as the timeline for the virus continues to be pushed further into the future. New York is now calling for the peak virus at the end of April. The longer we stay in this period, the worst the economic impact will be. Again, the great unknown here is the “E” in P/E. As long as that is an unknown variable, the market has nothing to cling on to. There is nothing to tell investors what is cheap or expensive.
Not to mention the long-term effect on the overall economy will grow more severe, along with the potential psychological impact this is having on people and how it may be changing their long-term behaviors.
S&P 500 (SPY)
We did gap lower on the S&P 500 and managed to find a minor level of support around 2,450 at days end, but I am not optimistic it shall hold for long. The next significant level I am looking for is at 2,400. At this point, I continue to think we head towards 2,270 whether we make new lows or not will depend on where we are in the cycle of this virus. If we are still in the early innings, then the market will fall dramatically further. Premium video, now with easy viewing options – Data, Earnings, Techincal Suggest Lower Prices For Stocks
Russell (IWM)
Russell fell by 7% today, and fell right through two levels of support, with the next one at the March lows.
Oil
As I noted in the video, and midday audio commentary I think oil is likely falling to around $17.25.
Boeing (BA)
Boeing fell hard today and is now back to support at $102, and likely moving lower still to around $102.
Goldman (GS)
Goldman fell sharply and is now trading below support $150 and is likely heading back to the lows at $136. 
Shopify (SHOP)
Shopify fell below support at $386, and I think it is going to refill that gap down at $360.
Nvidia (NVDA)
Nvidia also has support at $218, which seems possible now that it fell below $245.
Square (SQ)
Finally, Square has a gap of its own to fill around $40, and it also broke support today at $47.25.
Have a good one
-Mike
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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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