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Michael Kramer and the clients of Mott Capital own Tesla
Stocks had a rather quiet day with the S&P 500 flat. The good news is that stock held their gains for the late-day rally on Friday. The bad news, the index is struggling to rise above 2,716.
The index moved and failed right at resistance at the start of the day. It is consolidating nicely at these prices, and it seems to be forming a bullish flag, a continuation pattern. It would suggest to me we do rise above resistance at 2,716, and test 2,730, while also filling that gap from last week — more on gaps to come.
Russell 2000 (IWM)
We can see that a similar setup in the Russell 2000 came and went, with the Russell breaking out and on its way back to 1,524
So it seems to me that the S&P 500 is going to be more than fine going forward. I think lasts week sell-off on Thursday was nothing but noise. It looks like I have been proven correct until I get proven wrong tomorrow. Joke –Laugh. 😆
Tesla (TSLA)
Anyway, moving on to Tesla. The stock is having a tough time getting over the $318. It appears that there may be a downtrend in place, which surprising to me. The RSI continues to point to higher prices, so I am sticking with a bullish outlook on the stock and rise back towards $333.
Amazon (AMZN)
Don’t get too excited if you have Amazon; I have some bad news for you. The stock is struggling at this $1620-ish level. The RSI has a clear trend, and it isn’t higher –that’s for sure.
But here’s the thing, the RSI is more of a long-term trend lower. What I am seeing now is that the stock has the potential to rise with that falling wedge. It suggests Amazon could break out and first rise to around $1680 before moving lower again.
Nvidia (NVDA)
Nvidia reports on Friday, and as I noted this morning, the setup looks pretty bad. Here is a free story I wrote on the stock today. Nvidia’s Bulls May Be Too Optimistic
Activision (ATVI)
Talk about all gaps being filled. Activision, wow. Gap Filled! Next stop $35.80?
Goldman (GS)
All gaps get filled, eh? Watch out Goldman $183 is on the horizon. 😥
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[youtube-feed feed=7]Morgan Stanley (MS)
Can you believe that Morgan Stanley is on the verge of a breakdown that could result in stock the retesting its Christmas Eve lows? 🙁
Inflation
Watch out inflation; the dollar is on the move. 😯 That looks like a double bottom in the dollar index and that means we may be seeing a rise back to 100 on the index soon. Kiss your inflation worries goodbye, and forget about any more rate hikes in 2019, should the dollar keep going up. Draghi wins again. What will the ECB do when his term is over?!
It means that how copper trades will be even more critical because a strong dollar should weaken copper prices. So if copper should continue to rise, it tells us something about global growth.
See you tomorrow.
-Mike
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Charts used with the permission of Bloomberg Finance L.P. 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.