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1/22/21
STOCKS – ACAD, TSLA, NFLX, FB
MACRO – SPY, VXX
Mike’s Reading The Markets (RTM) Premium Content – FREE 2-WEEK TRIAL
- Update Board 1.22.21 – The GME Play-By-Play, SMH Overvalued To Qs?
- Midday – A Reminder Of How Dangerous Being Short Is
- Analysis – Intel Slumps On Manufacturing Commentary
- Morning Note – Options Market Not Pricing In Higher Equity Prices
- Update Board 1.21.21 – Ford Squeeze, Intel Call Buying
- Yields And Inflation Rate May Be Predicting Lower Equity Markets
- Morning Note- Epic Melt-Up Not Likely, VIX At Bottom Of Range
- Intel May Jump Following Quarterly Results
MICHAEL KRAMER AND THE CLIENTS OF MOTT CAPITAL OWN ACAD, TSLA
S&P 500 (SPY)
Stocks finished the day lower, with the S&P 500 dropping by around 30 bps, with most of the selling coming the final trading minutes. The index gapped lower, and the algo’s successfully filled the gap by day’s end, prompting the end of day move lower.
VIX (VXX)
The VIX finished the day higher around 21.9, and to this point, the idea that it is at the bottom of the range continues to hold. It will take a move above 23.5 or so to get the S&P 500 moving lower in a more than 1-2% drop.
If it is the case that VIX is at the end of the range with nowhere to fall, the S&P 500 is probably capped in this 3850 range for now. It will take a 2-3% drop to elevate the VIX enough to get the S&P 500 beyond the 3850.
Facebook (FB)
Facebook has been able to recover from its drop to $245. But the shares struggled today to get above $276. If the stock can get above $276, it will move up to around $292. I don’t think it will get past $276, though. (Should be free to read content – Facebook’s Undervalued Stock May Fall Following Quarterly Results)
Netflix (NFLX)
Netflix fell back below the $475 level. If the stock drops on Monday, I’m going to have to believe this a failed break out attempt. There is nothing wrong with the earnings; actually, they were great. But the stock is stuck around the $475 level, which may mean something about its future direction. (Premium subscriber content- Analysis: Netflix Delivers Blockbuster Results)
Tesla (TSLA)
Tesla looks like it has formed a bull pennant; if that is the case, perhaps the stock runs up this week. Based on the pattern, a projection suggests it could climb to around $1,000. It seems crazy, but this is a crazy market.
Acadia (ACAD)
Acadia has consolidated nicely, just like I wanted to see. A break out could result in the shares climbing to around $72.
Anyway, I should more over the weekend, Sunday by the latest.
-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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