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September 3, 2020
STOCKS – AAPL, TSLA, SQ, NVDA
Macro – QQQ, SPY
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- A Drop To 2860 On The S&P 500 Is A Real Possibility
- AMD May Fall 11% More
- Stock Market Comes To Critical Moment
- Stocks Set To Sell-Off Morning Commentary
- The NASDAQ Just Hit That Level Again – Midday
MICHAEL KRAMER AND THE CLIENTS OF MOTT CAPITAL OWN AAPL AND TSLA
MICHAEL KRAMER OWNS QQQ PUTS
That wasn’t fun. The S&P 500 fell by 3.5% today, and the NASDAQ 100 Qs fell by over 5%. It always amazes me how much faster markets can fall then they can rise. No matter how long I have done this, which is a long time, it still amazes me. Today’s price action took six days of gains away from the market.
I’m sure the big question on everyone’s mind is what happens next. It depends. The chart of the S&P 500 looks pretty bad to honest. Today’s action left the index sitting right on its uptrend from early April. It is too close to say it is officially broken, but it is not a spot you want to be. There is a chance this could turn into that pullback I have feared might happened, dragging us back to that 2,860 level. That’s how vital this uptrend is. (Mike’s premium content – A Drop To 2860 On The S&P 500 Is A Real Possibility – if you hate it cancel it, I’m not gonna chase you down.)
The good news is that the Qs have not yet come close to their uptrend.
At this point, all I can say, we have to wait and see. We can’t say that the market is breaking down yet, but at the same time, we don’t know if this is a one day wonder. Given how overbought this market was, I doubt this is over, and I think there is still further to fall.
The NASDAQ 100 VIX, the VXN, closed above 40, which is certainly not good.
The put to call ratio did rise today, on sightly higher put activity and slightly lower call activity. But an amount that makes me think the mentality of the options market has not changed in a meaningful way.
Apple (AAPL)
Apple fell below support today at $124 and is likely not finished falling, with the next level of support at $115.
Nvidia (NVDA)
Nvidia fell to support around $511 today, with a drop below that support sending the shares lower to $463.
Square (SQ)
Square broke one uptrend today, with the next uptrend around $140.
Tesla (TSLA)
Tesla has a pretty significant level of support, around $380 to $390. That is a considerable level that needs to hold, with the potential for shares to drop to $330 otherwise.
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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