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MAY 4, 2020
STOCKS: AMD, JPM, C, PYPL
MACRO: SPY, QQQ, IWM
MICHAEL KRAMER OWN IWM PUTS
MIKE’S READING THE MARKETS PREMIUM CONTENT
- Waiting On Data- Midday
- Stocks Falling With Significant Risk – Morning Commentary
- Volatility May Be High With Significant Downside Risk Starting This Week
- Many Signs Point To Lower Equity Prices
- Earnings Continue To Detoratiate
It was an incredibly dull day by the standards of the last two months. We gapped lower, filled the gap by mid-morning, and gradually drift higher to finish about 40 basis points up. The significant level of resistance lies at 2845, approximately where we closed. It doesn’t seem overly surprising to see that very little was accomplished today, with a whole bunch of data on the horizon. There is very little that changed from a technical standpoint, and the charts, in my opinion, still point lower.
S&P 500 (SPY)
The technical damage done to the charts last week remains, and there simply was not enough today to help with that repair. The level of support around 2800 remains the most critical level for this market, with a break starting what could be a cascading move lower.
NASDAQ (QQQ)
The same holds for the NASDAQ with a significant level of resistance at 8725, and support at 8450.
Russell (IWM)
The same damage still holds for the Russell 2000 IWM ETF, for which I still hold puts. For now, resistance remains at $126 and support at $118.10.
AMD (AMD)
AMD had a good day, but I think it fails when it reaches resistance at $52.90.
JPMorgan (JPM)
The chart on JPM doesn’t precisely look inspiring, and sort of like a bear pennant. That would not be good for anyone if that is the case, with lower prices on the horizon. This one must be watched closely.
Citigroup (C)
There is a similar bearish pattern also for Citigroup.
PayPal (PYPL)
I find it interesting how PayPal is trading right back at its all-time highs, but yet none of the other processors are. I guess we will find out when they report results if the move higher is warranted. For it seems pretty clear where resistance is. You could even say the chart looks bullish.
Have a good one.
-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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