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!
Subscribe to the Monster Stock Market Commentary to get the Daily Monster Market Commentary and join the 2,936 subscribers getting it for FREE!
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
Subscribe to the MCM Stock Market Commentary to get it Daily and join the 2,936 subscribers getting it for FREE!
Russell fell by 7% today, and fell right through two levels of support, with the next one at the March lows.
As I noted in the video, and midday audio commentary I think oil is likely falling to around $17.25.
Boeing fell hard today and is now back to support at $102, and likely moving lower still to around $102.
Shopify fell below support at $386, and I think it is going to refill that gap down at $360.
Nvidia also has support at $218, which seems possible now that it fell below $245.
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
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.