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February 8, 2021
STOCKS – SQ, XOM, LMND
MACRO – SPY, VIX
Mike’s Reading The Markets (RTM) Premium Content – FREE 2-WEEK TRIAL
- Stocks I Am Monitoring For Long-Term Investments
- Midday: Stocks Up, Vix Up
- Morning Note – Options Market Not Giving Stocks The Green Light
- T.W.A – Trying To Find A Way To Make Stocks Look Cheap
- Midday- The Circle Of Life
- Morning Note: Where Did Everyone Go?
- Midday – Here We Are Again, The Top And Bottom Of The Range
- MORNING NOTE: RATES AND THE DOLLAR ARE HEADING HIGHER
- Midday Note: This May Be The Top End Of The Range For Stocks
Stocks advanced today, with the S&P 500’s last minutes push higher to close at 3,915. The index was fairly well-contained, trading below 3,910 all day with buyers stepping in for the final thirty minutes of trading, but with a powerful move right at the close.
The most shorted indexed did manage to push higher by over 4%, and the Russell pushed higher by more than 2%. The move higher continues to be a short-squeeze of epic portion with stocks like Sorrento, Fuel Cell, and Novavax leading the way. These are, of course, also in the Russell 2000.
I should this chart in my weekend video for member of Reading The Markets, and it is stunning. Get the first two weeks free to try the service – T.W.A – Trying To Find A Way To Make Stocks Look Cheap
VIX (VIX)
The VIX was also up today, rising by around 2% to finish at 21.2. Again, one of the warning signs I like to track, rising volatility and rising stock prices; typically an indication of a market that is overheating as market makers jack up the pricing on options.
This, for now, remains the name of the market game, because if this is indeed the bottom of the range for the VIX, which I believe is, and implied volatility starts to rise again, then S&P 500 should be ready to take another dip lower. Whether it is of the 3-5% variety as we saw 2 weeks ago, or something more, I can’t tell right now.
The technical chart would suggest that 3,780 is the next spot on the S&P 500 we will soon see.
Square (SQ)
Square broke out today,, rising above $250. The stock is likely to rise slightly more, perhaps to around $280, and the top trend line.
Lemonade (LMND)
Lemonade is just flirting right now with a potential break of support at $140. If it t should fall below that support level,, it likely quickly returns to around $120.
Exxon (XOM)
Oil probably has a couple of more bucks to rise, which will probably be good news for Exxon. The stock broke free of resistance today around $51, and that will probably give it some more room to rise,, perhaps to around $54.
I don’t know, that’s all I have.
-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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