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12.1.20
Stocks – ZM, AMD, DOCU, CRM
Macro – SPY
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- The S&P 500 Breaks Out, Uber Is A $90B Food Delivery Co, Zoom Breaks
- Zoom Goes Pop, As The Markets Rock
- Tesla’s Valuation Is Steep. Still Some Think It Has Further To Rise
- Stocks Stuck In Neutral As AMD Surges
- Zoom Earnings, And The Need For Data Analytics – Morning 11.30.20
- One More Push Higher – The Week Ahead 11.30.20
S&P 500 (SPY)
Stocks rose today, with the S&P 500 closing around 3,660. It managed to close just above resistance at 3,645, and one needs to wonder what is next. For now, that resistance level is likely to come around 3,710. I have reasons to think after that; we will once again see one of those typical pullbacks of the 5-10% kind.
The only thing that is interesting today is that the S&P 500 futures failed at the prior highs around 3,670. So perhaps a divergent indicator. I honestly did notice this until now. Tomorrow should help to bring some extra clarity.
Salesforce (CRM)
Salesforce reported results, and as I thought they would be, weren’t as good as they appear. The revenue guidance for the next quarter and year are better than expected, but they include Slack’s revenue. Otherwise, they are basically inline. Meanwhile, the company earnings were boosted again by the equity holdings:
The stock is now very close to breaking down in a big way and filling the big gap down around $219.
AMD (AMD)
AMD managed to rise today but pay attention to where it failed and noticed how it finished lower today in a strong tape. Let’s see where the stock goes next.
Zoom (ZM)
Zoom fell by about 15% today. I guess for today, the stock’s bloated valuation matters. Suddenly, everyone woke up that it doesn’t matter how many users you have if you don’t make money on them. In fact, they become dead weight, dragging margins lower, with no end in sight. The only good news for Zoom is that there is again a gap to fill around $475. But then again there is a bigger one to fill at $325.
The bad news is that Volume is rising, and the RSI is moving lower. That means the next stop is probably $325.
DocuSign (DOCU)
DocuSign reports this week too. Another overvalued stock. That is falling on rising volume and an RSI that is trending lower. It is a steep drop to $160, but it wouldn’t surprise me in the least. (Free story – DocuSign’s Valuation Is Mind Bending).
That’ll be all.
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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