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11.5.20
Stocks – NVDA, GE, XOM
Macro – SPY, VIX
Mike’s Reading The Markets (RTM) Premium Content – NOW WITH A 2 WEEK FREE TRIAL
- Stocks Remain Stuck At The High End Of Range
- The Feedback Loop Is Sending Stocks Higher, Vix At Key Support
- A Path To 3800 On The S&P 500 In 2021
- Volality Implodes
- Volatility Collapsing
I don’t know if anybody noticed, but there was a Fed meeting today, and we will get jobs data tomorrow. I’m not sure anyone is paying any attention to either at this point and perhaps that is for the best. There was nothing I heard today out of the Fed that seemed to be of much concern to me, and let’s face it; it was for the best. The jobs data could be a variable tomorrow, but how much of a variable, I’m not sure; it will depend on what those results are.
Stocks continued to climb today, but I believe this has more to do with dealer positioning and the unwind of risk. So I’m doubtful this move higher will continue, and I still think we have gaps lower that need to be filled.
S&P 500 (SPY)
We can see that the S&P 500 rose right to downtrend and essentially stopped and could not rally past it all day.
Anyway, we can see it a little bit better on this chart. Now is it possible the futures rally overnight and gap up higher again, absolutely. I don’t think it is likely.
VIX
The VIX has collapsed back to 26, and that is the key level for the VIX; everytime it gets down to this region, it seems to stop. I’m not sure at this point there is a reason for the VIX to continue to deflate. It is not a coincidence that the VIX stock falling at support, while the S&P 500 stopped rising at resistance.
Nvidia (NVDA)
Nvidia has jumped on limited volume and has an RSI trending lower. The stock failed at resistance at the upper end of the trading channel.
GE (GE)
GE is getting very close to confirming a reverse head and shoulders pattern. It would need to rise above $8.50 to do that. It could have a long way to run if it breaks out, perhaps back to $10ish.
Exxon (XOM)
Exxon isn’t doing much these days, but the RSI still has a positive slope to it, so perhaps it continues its path higher.
Have a good night
-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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