Home » Stocks Slide As Momentum Stocks Get Roasted and Energy Lifts

Stocks Slide As Momentum Stocks Get Roasted and Energy Lifts
The S&P 500 was down just 35 basis points, but there was a nasty rotation that sent global payment stocks lower and energy higher.

Stocks Slide As Momentum Stocks Get Roasted and Energy Lifts

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.

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October 22

Stock mentions: SHOP, PYPL, MA, INTU, SQ, SNAP

Macro mentions: SPY

MICHAEL KRAMER AND THE CLIENTS OF MOTT CAPITAL OWN MA

S&P 500 (SPY)

The S&P 500 was down about 35 basis points on October 22, nothing dramatic. The index failed at the 3,014 level all day, before finally moving lower around 2 PM.  Support continues to be around 2,986, and I think much changed following today.  Premium content: Filling The Gap During An Afternoon Lull

S&P 500, spx

I’m still felt wondering why momentum stock got crushed again today.

Shopify (SHOP)

Shop was down a lot today, over 6%, on no apparent news. The stock fell below $300 and could even fall back to $285 again. The company reports results on October 29.

shop

PayPal (PYPL)

Paypal fell by over 4% today and looks like it could go to around $94.

paypal, pypl

Mastercard (MA)

Mastercard was down almost 5% and could drop to $253 if these level around $262 doesn’t hold.

mastercard, ma

Square (SQ)

Square fell today by almost 4% and could decline to $56.

square, sq

Intuit (INTU)

Intuit also fell by over 3% and needs to hold the $250 region.

intuit, intu

Anything to do with global payments or its software did not have a good day. Energy stocks were the one stand out today, with the XLE rising by over 1.5%. There were a bunch of names in the group up over 3%, like Pioneer (PXD), Occidental (OXY), and National Oilwell (NVO). Perhaps it was a rotation from some of the better performers’ names into some of the underperformers. I do not know.

SNAP (SNAP)

Finally, I’m surprised SNAP fell so sharply after hours. Maybe it’s one of these stocks that regroups tomorrow once trading resumes. Guidance looked fine, maybe I’m missing something, and I haven’t looked closely enough. $13.25 was firm after hours, though.

But what was really strange about SNAP was that the stock was getting pushed lower in a big way before the results were even out. I was watching it trade down searching the web for the results, and they weren’t to be found, until 4:10. I think someone was trying to get in front of SNAP, and that set the stage for the push lower, which is likely why the stock is lifting after the dust has settled.

snap, snap

I guess we can find out tomorrow.

-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.