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MARCH 9, 2021
STOCKS – DOCU, NVDA, AMZN
MACRO – SPY
Mike’s Reading The Markets (RTM) Premium Content – FREE 2-WEEK TRIAL
- Video: Today’s Rally Not Likely To Last
- Midday Note- Not Believing In Today’s Rally
- Morning Notes: Zoom And Acadia Updates
- Video: The Fundamentals Of The Stock Market Have Changed
- Midday – Today’s Rally Isn’t Likely To Hold
- Morning Note: The Dollar Will Add To Pressure On Risk Asset
- T.W.A – Trouble Lies Beneath The Surface
- The Fed Is Likely To Remain On Hold At Its March Meeting
- Live Stream Will Start At 1:10 PM ET
Stocks had a great day, with the S&P 500 climbing by 1.4% and the Qs climbing by almost 4%. Very strange to see, especially after the selling witnessed on Monday. In fact, today’s move higher, I expected on Monday. But it happened none-the-less.
This really started overnight in Asia, when it seemed the Chinese communist party was not pleased with the weak price action in their markets. That put a bid in Asian stocks, and well, S&P 500 futures spiked as well, and it seems to have just carried over.
The index struggled at 3,900 all day, and it proved to be too much for the time being. A big sell imbalance on the close, more than $3 billion, pushed the index about 60 bps off its highs.
S&P 500 (SPY)
A lot of what happens next will be dependent upon CPI data tomorrow morning. If the data is hotter than expected, it could easily wipe out many of today’s big gains. It would not surprise me for the index to give most of these gains away over the next few days and close the gap from this morning’s move higher.
US 10-Year
The trend in rates is higher for now, but a breakdown could give the S&P 500 and technology stocks some relief, sending the equity market even higher. If CPI comes in hot, the 10-year would likely overtake 1.6%. There is the possibility of an ascending triangle forming, which would suggest yields move higher. But we won’t know until tomorrow.
Nvidia (NVDA)
Nvidia had a strong day, coming back from oversold conditions. The stock reached a level around 30 on the RSI and fell below its lower Bollinger band yesterday. Based on that, there could be a little bit higher to climb, perhaps back to $520.
Amazon (AMZN)
Amazon had a strong day too, but couldn’t manage to make it past resistance at a price around 3,070. The stock isn’t as oversold as others, so it may not have much further room to run.
DocuSign (DOCU)
DocuSign is another stock that could have a bit further to climb, perhaps back to $226.
-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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