Stocks Slump On May 21 As Technology Uptrends Break

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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May 21, 2020

Stocks – AMZN, FB, W, NFLX, AAPL

Macro – SPY, QQQ

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S&P 500 (SPY) 

Stocks managed to finish the day lower by 81 basis points to close at 2,951. The 2950 level acted as a level of support all day long, and as long as that level holds, all should be ok. However, a drop below 2,910 likely sets up a steeper drop to around 2,860. Again, nothing changes from a perspective of resistance at 3,000.

S&P 500, spx

Nasdaq 100 ETF (QQQ)

As I noted throughout the day, the NASDAQ 100 ETF did show significant signs of weakness with the ETF falling below the recent uptrend, and potentially setting up a steeper drop to around $222, or the lower end of the channel. 

QQQ

Apple (AAPL)

Apple continues to struggle around $320 and inching closer to the uptrend we have been watching. Again the RSI has been showing weakness and suggests that Apple breaks the uptrend and moves lower towards $295 to start. 

Apple, aapl

Amazon (AMZN)

Amazon also broke the uptrend, and the RSI is also suggesting the shares fall, potentially to $2,285. 

amazon, amzn

Facebook (FB)

Facebook quickly hit the $237 target I laid out yesterday, and just as quickly backed down. Who knows where this stock goes, I think it is ridiculous as it is. Perhaps it pulls back to $218. 

facebook, fb

Netflix (NFLX)

Netflix appears to have broken its uptrend, and with the declining RSI, it likely means a move to $418. 

netflxi, nflx

Wayfair (W)

It looks like Wayfair has formed a symmetrical triangle, and that likely means that it continues to decline on its path towards $135. 

w, wayfair

Anyway, that will be all. 

-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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