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MAY 7, 2020
STOCKS – UBER, AAPL, PFE, AMD
MACRO – SPY, YIELDS, XLV
MICHAEL KRAMER AND THE CLIENTS OF MOTT CAPITAL OWN AAPL
Mike’s Reading The Markets Premium Content
- FED FUNDS FUTURES PRICING IN NEGATIVE RATES – MIDDAY
- Initial Claims Are Worse – Morning Commentary
- Is The Unwind Upon Us?
The last three days seem to be a repeat of one another with late day fades. Perhaps, it is because the sellers are slowly starting to take control of the market once again, or that the number of buyers is thinning out. Whatever the case, it seems to be noticeable.
Negative Rates
The one thing that seemed to go completely unnoticed by the stock market was how the Fed Funds Futures were now pricing in –0.03% for March 2021. Go out to June of 2021, and it is at a negative 0.045%. PREMIUM CONTENT – FED FUNDS FUTURES PRICING IN NEGATIVE RATES – MIDDAY
2-Year
Another interesting tidbit was the 2-year yield falling to a record low 13 basis points. 
10-Year
The 10-year yield also made a move lower today, after failing two times now at the downtrend in recent days.
Gold
Gold is also creating a bullish pennant pattern, which could result in the metal rising quickly to $1800.
S&P 500 (SPY)
So how should we think about all of this? Well, it certainly doesn’t suggest all is rosy in the economy. It would also seem to indicate the optimism in the equity market is, well, contained only to the equity market.
Meanwhile, the S&P 500 did finish the day higher, but that was well off the highs of the day. The index failed on the southside of the uptrend and showed the resistant level that exists.
Uber (UBER)
It seems like all a company has to say these days is that they are seeing signs of stabilization at the end of April, and the stock goes up massively. Uber just reported a $2.9 billion loss, which was worse than expected, and the stock is trading higher after hours. It makes a ton of sense.
Apple (AAPL)
It is starting to look more and more like Apple is forming a rising wedge pattern, and that is not a good sign for the stock or the market. A decline to $265 is still possible.
AMD (AMD)
AMD continues to struggle around $53 and seems more likely for the stock to move lower towards $49.
Health Care (XLV)
Is that a head and shoulders pattern forming in the XLV? It looks like it, $96 will be a significant level to watch going forward.
Pfizer (PFE)
Pfizer failed today at the downtrend and is now sitting on support at $37, with a chance to fall back to $33.85.
Have a good day.
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.
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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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