Stocks Pulling Back on May 11, With Warnings Signs Galore

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.

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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

MIKE’S READING THE MARKETS PREMIUM CONTENT – JUST $35/MONTH OR $300/YEAR

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. 

kospi

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. 

nasdaq, ndx

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. 

spy

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

amazon, amzn

 

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. 

Amazon, amzn

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. 

tesla, tsla

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. 

boeing, ba

JPMorgan (JPM)

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

jpmorgan

That will be all…

-Mike

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.  

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