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August 15, 2020
STOCKS – CSCO, MU, V, LLY
MACRO – SPY, QQQ, LQD, FDN
Mike’s Reading The Markets (RTM) Premium Content – NOW WITH A 2 WEEK FREE TRIAL
- Visa Shares May Decline Over The Near Term
- Earnings Trends For The S&P 500 Continue To Drift Higher
- Dull Friday – Midday
- On Gap Watch For The S&P 500
- Warning Signs
- The Message Remains Unchanged, The Market Has Limited Upside
- S&P 500 At THE Critical Moment
- Risk-On Still Under Stress
MICHAEL KRAMER AND THE CLIENTS OF MOTT CAPITAL OWN VISA
Stocks had a rather meaningless day of trading on Friday, with the S&P 500 falling by two bps, and the NASDAQ 100 falling 12 bps. Still, the S&P 500 was unable to rise above resistance around the 3,385 level, having stalled out in this region. It may be just a matter of days before we find out what the S&P 500 next turn maybe. The RSI index is contracting quickly, and with the uptrend and downtrend forming a wedge.
What is clear is that the RSI is printing lower highs, and that is a bearish divergence from the higher highs in the SPX.
Again, it seems that, like the S&P 500, we are likely to know the fate of the Qs soon, perhaps also in just a number of days. It seems for now that uptrend remains firm, but the upper bound of that uptrend has shifted.
Meanwhile, the number of stocks in the NASDAQ 100 above its 50-day moving average has been quietly slipping lower.
We can also see that the corporate bonds are now losing their bid, and yields are rising. Remember it was on July 29, we saw that giant put trade in the LQD ahead of the FOMC meeting. (premium content, get the first two-weeks FREE- It All About The Fed, And Bets Are For Less Liquidity)
The FDN Internet ETF is also starting to roll-over with the 21-day moving flattening out. The uptrend is in serious trouble, and the RSI is flashing warning lights.
I noted today some bearish bets in Visa and the fact that the stock has been unable to break above resistance at $200. It could result in the share falling back to $187, and potentially lower. (premium content – Visa Shares May Decline Over The Near Term)
Micron has been falling and it likely isn’t finished, with room to drop to around $42.
Eli Lilly is very close to breaking support at $148, and potentially on its way to $132.
Cisco may still have a bit further to fall, $41 is likely it is finally resting spot.
Have a great Saturday
-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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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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