April 21, 2021
STOCKS – MSFT, ROKU, GLD, BTC
MACRO – SPY
- RTM Midday- Testing Critical Resistance Levels
- RTM: Intel Earnings Preview- Need To Know Guide
- RTM Morning Note: Global Sentiment Is Shifting
- Midday- Stocks Drop With More Warnings Signs Building
- Understanding And Modeling S&P 500 Earnings Estimates
- RTM Morning Note- Gearing Up For Netflix
Michael Kramer and the clients of Mott Capital own MSFT
Stocks advanced today, erasing all of yesterday’s losses and more. The S&P 500 finished the day up 93 bps and closed at 4,173. Meanwhile, the NASDAQ 100 ETF rose by around 86 bps, closing around $339.
The S&P 500 is poised to close the gap at 4,185. That is the next level to look for, and a move to that level will tell us a lot about what happens thereafter. Clearly, if it moves above 4,185; there is a good chance we move up to 4,240. If we fail, at 4,185, there is a good chance we revert and move to retest 4,125.
The bears had a lot going their way this morning, especially with Netflix down sharply. But they simply didn’t show up to play the game.
After-hours the S&P 500 E-mini futures, are finding resistance at the uptrend that formed on April 7. This could prove to be a retest of the break in trend, and move lower.
Bitcoin isn’t helping is breaking a very bearish pattern. The pattern in bitcoin is on the hourly chart and is negative –a bear pennant. The wave count suggests the next break is lower too.
The relative strength index is breaking to a new low, also suggesting lower prices lie ahead for Bitcoin. The target price level would be around 51,900, but it could be much lower, with the level to look for 45,000.
Gold has been pushing higher recently, after finding support around $1,675. It may even be forming a double bottom off of support. A push above $1,800 likely confirms the double bottom pattern and the potential to push up to $1915.
Today, I noted in an article; I thought Microsoft could run up to around $275. (Should be free to read – Microsoft’s Stock May Rally Further Following Its Quarterly Results)
I thought Roku would be down today given Netflix’s results. The stock is still overvalued in my opinion, and I tend to think Vizio now offers a direct peer. (Should be free to read – Roku’s Stock Is Still Insanely Valued)
That’s all today
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.