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.
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 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 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 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 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.
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