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June 23, 2020
STOCKS – ACAD, AAPL, MU, INTC
MACRO – SPY, QQQ, XLK
Mike Reading The Markets Premium Content – $35/Month or $300/Year
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MICHAEL KRAMER AND THE CLIENTS OF MOTT CAPITAL OWN AAPL AND ACAD
S&P 500 (SPY)
Stocks had an ok day, rising by about 50 basis points on the S&P 500. It could have been much better, but the index can’t get out of its way. There is something that is happening in the E-minis and the SPX cash that there is a huge level of resistance the market just can’t get through. I think it is a negative sign for the index at this point.
Today marked the fifth time the futures have failed at 3,145. Something similar did happen in July 2019, and it led to a sizeable sell-off of about 8% at the time. Today 8% doesn’t seem so scary or severe, given what we have gone through. It also resulted in August being an extremely choppy month.
I think the S&P 500 is setting up for a decline to around 2,960.
NASDAQ (QQQ)
The Nasdaq is just not set up to go higher either at this point. It is now the sixth time the Qs have reached the upper level of its trading range. Since April, every time the ETF has hit that upper range, it has resulted in a decent pullback. Additionally, the ETF’s RSI hit overbought levels today around 70. It seems like there is a good chance here for the Qs to fall back to $240. Premium Content – Nasdaq 100 May See A Sharp Reversal Short-Term
Technology (XLK)
The XLK technology ETF also continues to move higher, but interestingly, the trading channel is not a channel at all. It hasn’t become apparent until recently to me, but it is one large rising wedge pattern. You can see when the channel started in April it was about 8% wide, now it is just 3% wide.
Alibaba (BABA)
Alibaba has had a powerful run and is pushing up near resistance at $231. The RSI is still tracking higher, and I think the stock continues to push up, despite broader market weakness. $247.50 is an achievable level.
Apple (AAPL)
Apple continues to melt higher, and nobody could be happier than I am. But even I know when stocks I own need to cool off, Apple needs to cool off. The RSI is over 70 again, and the stock hit that resistance level I point out a few weeks ago at $372. So this seems like the ideal place for a pullback to $325.
Intel (INTC)
Intel doesn’t look particularly strong here, with the potential to drop to around $55.90.
Micron (MU)
Micron is also sitting on support at $49.80, and the RSI is moving lower. I think the odds of a drop to $45.50 are rising.
Acadia (ACAD)
Acadia is so close to making a new all-time high. Today it got some positive commentary out of Jefferies about the companies upcoming readout for its depression trial. I think there will be plenty more positive commentary to come. I happen to believe they will have a positive readout for depression as well. A break out could push shares on to $75.
Have a good one.
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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