This column is my opinion and expresses my views. Those views can change at a moments notice when the market changes. I am not right all the time and I do not expect to be. I disclose all my positions clearly listed on the page, and I do not trade my account on the stocks spoken of in this column unless fully disclosed. If that does not work for you stop reading and close the page. Do not bother me or harass me.
Otherwise, enjoy the column!
Subscribe to the Monster Stock Market Commentary and join the 2,568 subscribers getting it for FREE every day!
October 19, 2021
Stocks – TSLA, LRCX
Macro – SPY
- 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 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.
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.