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October 19, 2021
Stocks – TSLA, LRCX
Macro – SPY
Mike’s Reading The Markets (RTM) Premium Content – $45/MONTH OR $400/YEAR
- RTM- Stocks May Be Retesting The Broken Trend On Their Way Lower
- RTM Video: This May Be Microsoft’s Next Leg Of Growth
- RTM: The Dollar Rebound
- RTM: Stocks Stall On VIX And Dollar
- Pairing Down Tesla, Buying Allscripts
- RTM Exclusive: Tesla May Plunge Following Results Amid Massive Expectations
- RTM Tactical Update: The Dollar Will Determine The Equity Markets Next Move
MICHAEL KRAMER AND THE CLIENTS OF MOTT CAPITAL OWN TESLA
Stocks finished the day, higher with the S&P 500 up around 30 bps. Today was the opposite of yesterday, with the Equal Weight index outperforming and rising by 75 bps and the Nasdaq 100 finishing down by approximately 15 bps. Yields on the front of the curve fell and increased on the back end, with spreads widening. That, along with more dollar struggles, sent everyone into the value equities.
S&P 500 (SPY)
The S&P 500 made it back to the February trend line and pretty much stopped at that point. We gapped below that trend on September 17 and have now risen back to it. At this point, the bulls need to gap over that trend line tomorrow to keep the rally alive. If the trend in the market has shifted to one that is lower, then this recent move up is simply a retest of that breakdown.
If we start heading lower and then fall back below 4,430, I would look for the lows of early October to fall.
Tesla (TSLA)
Tesla reported a big beat on the top and bottom, with gross margins coming in 30.5%. A solid quarter. I guess the question is if it was strong enough. The stock is doing nothing after hours. There is a rising wedge on the chart, complete with a spillover, along with an RSI at 78. I don’t think the beat was big enough to push the stock higher.
Lam Research (LRCX)
Lam Research reported better than expected results on the bottom line but missed revenue. Guidance was in line with estimates as well. Lam is potentially an interesting stock to watch because of its role in the semiconductor space and its implications for the rest of the group. The chart is not encouraging at all, and the stock needs to hold support at $543.
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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