Subscribe to receive this FREE daily commentary directly in your email
November 2, 2020
Stocks – SHOP, AMD, MSFT
Macro – QQQ, SPY
Mike’s Reading The Markets (RTM) Premium Content – NOW WITH A 2 WEEK FREE TRIAL
MICHAEL KRAMER AND THE CLIENTS OF MOTT CAPITAL OWN MSFT
Stocks finished higher by around 1.2% in what seemed to be a rebound day from oversold levels. There was no clear catalyst for the strong day. It had been up by nearly 1.5% following the better than expected ISM report, but even that couldn’t keep stocks move higher all day. It was a rather dull day overall.
Perhaps there is some nervousness or positioning ahead of tomorrow’s election. It seems unclear to me what today was about. There was a rotation out of the tech and into the reflation sector. Without knowing what the government’s makeup will be after tomorrow, it seems too hard to know if and how people are positioning.
S&P 500 (SPY)
The index filled most of the gap from the morning opening but couldn’t fill it all the way. It leaves open a possible retest of that level tomorrow. Additionally, we still have to contend with a potential double top pattern working its way out. It will take a drop below 3,200 to trigger what would be a signal for a steeper drop.
Nasdaq (QQQ)
The Qs did continue to move lower today, rising by 35bps. At this point, it continues to really trend lower in a fairly well-defined channel. There is a possibility the path is being to shift to something that suggests a steeper downtrend.
AMD fell below $75 today, and now that price is likely to act as resistance. A failure at resistance likely sends the stock on a path even lower, to $69.
Shopify (SHOP)
Shopify continues to trade very poorly and is sitting on support at $910. That is crucial because when it breaks, it shall drop towards $850.
Microsoft is very close to breaking down, with support around a price of $198. After that, it seems likely to drop to around $187.
Skyworks (SWKS)
Skyworks posted blow-out results and guidance. It seems that most of the good news must-have been priced in already, with the shares hardly moving higher. I owned this stock for so many years, waiting for the 5G rollout. It seems that business is doing well and 5G is helping them. I’m just sorry I sold the stock 6 months ago. Live and learn.
-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.
Subscribe to receive this FREE daily commentary directly in your email
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.
rtm9 29 25
Mott Capital's Market Chronicles 11 hours ago