Subscribe to receive this daily commentary directly in your email
Independent macro and options research, published every trading day — $85/mo or $750/yr
Subscribe →May 6, 2021
STOCKS – TWLO, DOCU, ZM
MACRO – SPY, QQQ
Mike’s Reading The Markets (RTM) Premium Content – FREE 2-WEEK TRIAL
Stocks finished the day higher, after an end-of-day panic buying episode. There is a multitude of things that drove that final hour spike higher. The first being unwinding of short positions likely ahead of tomorrow’s Non-Farm Payroll report. Second, it had a “gamma” reshuffling feel to it—third more than $2 billion to buy on the closing cross.
Clearly, the markets are nervous about tomorrow’s payroll number. We have virtually been marking time all week, stuck in a trading range between 4,120 and 4,200. I could not even begin to predict what the job number will be, but we may reach a point where the better the number, the worse it is for stocks. Estimates are for about 1 million jobs added in April, with no change in month/month’s wages. I haven’t the slightest idea what will happen.
Yields haven’t been rising, despite hotter inflation data, this past week. Meanwhile, the equity market has done nothing despite the better earnings for the past 3 weeks. So who knows.
Navigating The Market · By Michael Kramer Independent macro and options research, published every trading day. Daily written analysis covering gamma exposure, dealer flows, key levels, and the macro drivers moving markets. Includes full video access. Recent Subscriber Analysis
Some stocks are getting absolutely annihilated, in a way I haven’t seen in two decades.
Zoom (ZM)
Zoom has been destroyed, down more than 50%, and the scary thing is, this stock really could fall even further. Hopefully, the stock will find some support at $276, but the RSI is telling you it hasn’t bottomed yet.
DocuSign (DOCU)
DocuSign is sitting on support at $188, and if that level breaks, this stock will easily go back to $160.
The Market Chronicles · Video Membership The daily market commentary, delivered in video. Same daily market analysis, in video form — available to YouTube channel members only. Latest Videos
Twilio (TWLO)
Twilio, well, there is an unfilled gap down at $120, and while I am not suggesting it goes there in a straight line, at some point, many gaps do get filled.
Anyway, I’m done and tired.
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.
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.
Stocks Trade Lower On Settlement Tuesday
Mott Capital's Market Chronicles 23 hours ago