Subscribe to receive this FREE daily commentary directly in your email
July 13, 2020
STOCKS – UBER, PEP, PFE
MACRO – SPY, QQQ
Mike Reading The Markets Premium Content – $35/Month or $300/Year
- NASDAQ IS RIPE FOR A SIZEABLE DROP – WEEK AHEAD
- JPM May Jump As Much As 10% Followings Its Quarterly Results
- Live Webinar Will Be July 30
- EPS Estimates Continue To Slide
- The Worst May Be Yet To Come
- Markets Setting Up For 5-6% Dip
Stocks are rising this morning around the world, with the KOSPI and DAX both up around 1% and Shanghai up nearly 2%. It is essential to recognize this because it indicates the rally here in the US is not alone. The big question is what phase of this rally are we in? Is the middle or nearing the end? Very hard to tell, of course, but what we do know is that a few of these markets are at inflection points. It means they continue higher or turn the other way.
South Korea (EWY)
The KOSPI is at a multi-year downtrend that has seen the index fail multiple times over the years. So is this a significant level for South Korea? Yes. So is South Korea at an inflection point, yes.
NASDAQ 100 (QQQ)
The QQQ is at an inflection point of there own. Either the ETF is in the midst of a change in trend, or is the upper part of the range. Either we are going sharply higher from here or sharply lower. I’m not sure there is an in-between. Premium content – NASDAQ IS RIPE FOR A SIZEABLE DROP – WEEK AHEAD
S&P 500 (SPY)
The SPY is either about to break out or turn lower. The ETF is sitting at its own inflection point, which is the downtrend off the February highs.
Pepsi (PEP)
Pepsi reported better than expected results this morning on the strength of its Frito-Lay brands. But guess what the company is giving no guidance. How I hope this isn’t the trend for every company this quarter. The stock is rising to resistance at $139.50, and just like everything else, finds itself at an inflection point.
UBER (UBER)
Well, if you thought Uber was a riding sharing business, it is now only half a ride-sharing company, with food delivery the other half. I don’t know how that changes the stock valuation, but yes, something to think about. Given the virus, I believe that over time, we find that riding sharing continues to shrink as a percentage of the pie. I still think this one heads lower.
Pfizer (PFE)
Pfizer is rising this morning on news two of its vaccine candidates will get FDA fast track destination. So? Who cares? It doesn’t mean anything. So instead of taking 12 months for approval, it will take 6?! Why is the stock is trading up on this news. Any die-hard biotech investors must be so frustrated how this market reacts to non-news headlines, that move the entire market! I wonder if PFE can get above $34.90.
Anyway, that’s 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.
Subscribe to receive this FREE daily commentary directly in your email
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.
Stock Market Gains Tied To Volatility Crush
Mott Capital's Market Chronicles 15 hours ago