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September 28, 2020
STOCKS – FB, TSLA, BA, INTC
Macro – SPY,
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- More Derisking Taking Place
MICHAEL KRAMER AND THE CLIENTS OF MOTT CAPITAL OWN TSLA
Stocks managed to gain today with the S&P 500 rising by 1.6% to close at 3,352. The Algo’s did everything in their power to close the S&P 500 just below its 50-day moving average, which acted as firm resistance all day. I’m usually not a fan of using moving averages as support and resistance. But today, the 50-day did hold firm.
Today’s move higher is either the start of the next big wave higher or marks the peak of the next leg lower. I say that because we also managed to close on what appears to be the lasts potential downtrend line. After 3,366, there is no place on the chart in which you can connect three points to form a downtrend.
It is too soon to say we have broken out because you need to see another convincing rally tomorrow, which could set up a potential move higher back to around 3,590, just like a failure at the downtrend is likely to send the index lower to about 3,180.
For now, there is still a lower trend, and the index managed to fail at the 50-day moving average, and RSI stuck at 50.
If I had to guess, I think there is a pretty good chance we fill the gap created this morning down at 3,300.
Boeing (BA)
Boeing is very close to breaking out and heading higher. The stock has struggled but it appears it may be getting some bullish momentum, with a push above $167 potentially sending the stock to $183.
Facebook (FB)
Facebook didn’t have very much success moving higher today, getting stuck below resistance at $260. I still tend to think Facebook is heading lower from here.
Tesla (TSLA)
Tesla appears to be forming a symmetrical triangle. If that is the case, then there is a good chance it drops to around $372 before it breaks out in a few weeks and heads even higher.
Intel (INTC)
Intel has done a fantastic job holding the lows and is now starting to trend higher on the RSI. It could even be setting up to fill that gap up to $59.75.
Have a great night, everyone!
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.
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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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