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MARCH 2, 2021
STOCKS – TSLA, AAPL, ROKU, ZM
MACRO – SPY, QQQ, IEF
Mike’s Reading The Markets (RTM) Premium Content – FREE 2-WEEK TRIAL
- Live Streaming Session On Friday 3.5.21 At 1 PM ET
- Midday Note: Indecision
- Morning Note: It All About TIPS Now
- Midday Note: Don’t Trust The Rally
- Morning Note: Waiting On Key Inflation Data
- T.W.A – Who Will Blink First?
- Friday Stream Session 1.26.21 -REPLAY
- Morning Note: Waiting For The Markets Next Major Move
- Live Webcast Session- 2.26.21 12:30 PM ET
CLIENTS OF MOTT CAPITAL OWN TESLA AND APPLE
It was a rough session for equities today, specifically the grossly overvalued technology names. The S&P 500 did drop by around 80 bps, and I expect many of Monday’s gains to be wiped away, filling the technical gap at 3,810. There was no reason for the market to rise the way it did. Perhaps it was monthly inflows or implied volatility drop, but I don’t think there was any fundamental reason for it. Given that rates are where they are, I don’t see how anything has changed.
10-Year
The 10-Year has stabilized, but I would expect it to trade lower to around 1.3% before it trades higher again. Regardless it won’t help equity prices. Valuations are being re-set and that is clear.
NASDAQ 100 (QQQ)
It is quite clear that the NASDAQ 100, like the S&P 500, appears to be on a pace to refill its gap from Monday’s opening.
Roku (ROKU)
Roku filled the technical gap today after announcing a deal and a $1 billion equity offering. It isn’t clear to me when this deal will be priced. There does appear to be one layer of support left at $380 and once that goes, the stock should see a sharp drop back to $310.
Zoom (ZM)
Zoom had a horrible day, after starting higher by almost 10% it finished the day down 9%. The stock is likely to fall back to the deal price around $340, if $340 doesn’t hold, the flood gates will open. (SHOULD BE FREE TO READ – Zoom’s Results Were Not Good Enough)
Apple (AAPL)
Apple got up to resistance at $127.85, this is a bad sign, and suggests that Apple moves back to $120.
Tesla (TSLA)
Don’t think that gap in Tesla can’t get filled at $406. It can, and it likely will at some point over the next few weeks.
-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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