Stocks Stage Strong Come Back on June 15, As Bulls Bounce Back

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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June 15, 2020

STOCKS – UBER, BA, ACAD

MACRO – SPY, QQQ

Mike Reading The Markets Premium Content – $35/Month or $300/Year

Michael Kramer and the clients of Mott Capital own ACAD

Stocks staged an impressive come back on June 15, after plunging to start the trading session by nearly 2.5%. By midday, it seemed like one of the typical gaps lower, work higher during the day to fill the gap. As of 1:59 PM, that was happening, with the S&P 500 starting to drift lower once again. But then the Fed issued an update to its plans to buy corporate bonds, and stocks took off. 

The update was just that, an update, this program had been announced months earlier, and there was nothing “new” about it. We had been waiting for months for the Fed to start buying individual corporate bonds. The S&P 500 managed to get to as high as 3,081, and that is where it failed. That was the same spot it failed on Friday. 

I’m not sure how to think about today. The index kind of finished in no man’s land.  For the bears, it would have been best for the index to close below 3,050. For the bulls, it would have been best to close above 3,080. 

S&P 500, spx

The Qs managed to rally as well, but also closed below resistance at $340.

qqq

Still, this week has several headwinds for the bulls, including Quad Witching, and the S&P 500 rebalance. I went through all of this in the look-ahead for premium subscribers. Remember, it will be bigger then usual rebalance, because if you remember there was no rebalance in the first quarter. (Premium content – A Massive Week Lies Ahead For The Stock Market)

Uber (UBER)

Uber was up a bit, but I saw some bearish options betting on this one today. Also, the stock is now below the lower bound of its trading channel, with the only holding up being support at $30.50. Perhaps it drops to around $28.50. (Premium content – Uber May See A Steep Decline)uber

Acadia (ACAD)

Acadia filed its sNDA for Pimavanserin today for Dementia-related psychosis. Now we just have to wait for a PDUFA date and potential advisory meeting date. The drug is likely to get an advisory meeting since there are no approved drugs for the indication. The stock has been hanging on at that $43 level nicely over the last few months. 

Boeing (BA)

I’m kind of amazed at how Boeing moves around. Now it looks like it is ready to go back to $197. 

 

That’s all I have today.

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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