APRIL 29, 2020

STOCKS – GOOGL, TSLA, FB, AMD

MACRO – SPY, YIELDS

MICHAEL KRAMER AND THE CLIENTS OF MOTT CAPITAL OWN TSLA AND GOOGL

MIKE’S READING THE MARKET PREMIUM CONTENT:

• Stocks Fall Ahead Of Big Earnings Weeks
• Has The Discounting Mechanism Changed? Morning Commentary
• Stocks Rise Again

Stocks are rising on April 29 and regaining yesterday’s late afternoon sell-off. But today is likely to be a volatile one, with a load of economic data and the FOMC and press conference today at 2:30. How things will play out, I’m not sure. 

S&P 500 (SPY)

The index was as low at 2,850 overnight on the futures and is now trading around 2,900. I can’t imagine that the trading range changes all that much until 2 PM. But we are approaching the month-end, and there is likely to be some rebalance taking place. 

10-Year

Keep an eye on the 10-year yield with a descending triangle pattern that has formed. A break below 55 basis points gets that rate moving towards 0%. Yeah, you read it right, 0%. You can watch this video on why I think rates are going lower. Premium content – The Velocity Of MZM May Drive Rates Even Lower

Alphabet (GOOGL)

Alphabet is rising sharply higher after results were better than feared. The stock’s next significant level of resistance is around $1,365. I went through some of this in a free story on Forbes. – Alphabet’s Post Earnings Rally May Only Be The Start

AMD (AMD)

AMD is trading down a bit after giving weaker than expected guidance. The miss on guidance seems minor at $1.85 billion, versus estimates of $1.92 billion. Usually, I’d see this is as a rounding error, but given the stock’s valuation and the current environment, I can see why it is trading lower, and why it could still go even lower. For now, it just needs to stay over $53. 

Facebook (FB)

Facebook will report results later today, and the chart doesn’t look great overall. The RSI is falling dealing too with momentum fading. A drop below $180 sets up a decline to $172. 

Tesla (TSLA)

Tesla will also report tonight after the close. All the focus will be on cash flow, cash, and delivery guidance for the year. The RSI is still rising, and I think the stock can still get back to $850. 

Have a good one. 

Mike

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