MAY 11, 2020

STOCKS – AMZN, TSLA, JPM, BA

MACRO- SPY, EWY

LONG-TERM TRENDS – CAUTIOUS

MICHAEL KRAMER AND THE CLIENTS OF MOTT CAPITAL OWN TSLA

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Trends I’m Watching For The Week of May 11 – Free Video

Stocks are falling today with the S&P 500 ETF pointing to a decline of 45 basis points. There no headlines pushing the markets lower to start the week off, but markets are weaker around the world. South Korea finished the day down 54 basis points. Meanwhile, Germany is trading about 70 basis points lower today. 

South Korea

The Kospi should be put on watch after reaching its April 28 highs and turning lower last night, to finish the days at the lows. South Korea is a crucial export economy, and the correlation between this market and the NASDAQ has been rather stunning. 

The bottom red section in the chart is the correlation coefficient, and we can it is has been tight, but since the end of April, there has been a divergence occurring, one we must watch. 

S&P 500 (SPY)

The S&P 500 ETF also has a potential head and shoulders pattern forming in it and also must be put on watch here. 

The pattern is a little more apparent in the S&P 500 Futures. 

 

Amazon (AMZN)

Amazon is falling a touch this morning; on headlines, it is in talks to acquire the AMC movie theater chains. Amazon needs to stay above that uptrend to avoid that drop to $2095 we have been looking for. 

Tesla (TSLA)

Tesla is falling some today, after a Reuters report that the company sold just 3,600 Model 3 in China in April. I’m not sure how accurate this but, it is making headlines, and the stock is falling some in response. A drop below $760 probably pushes the shares back to $680. 

Boeing (BA)

There is still very much a downtrend in Boeing’s stock, and it is still very much looks like a defending triangle, with the potential for the shares to fall that $102 to $103 level. 

JPMorgan (JPM)

JPMorgan is falling a bit, and the uptrend is breaking, with the next level of support comes around $87.70. 

That will be all…

-Mike

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