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MAY 27, 2020
STOCKS – PYPL, ACAD, FB
MACRO – SPY, DAX
MIKE’S READING THE MARKET PREMIUM CONTENT –Â
- Trends Still Point Higher For Now
- Stocks Ready To Rally, Looking For Rotation?
- Global Rally On May 25
- Earnings Trends For 5.22.20
- Testing Resistance – Midday 5.22.20
- Fillin’ Gaps To Start The Day – Morning Commentary
- Naz Uptrend Breaks, Midday
- Watch 2 Key Levels – Morning Commentary 5.21.20
MICHAEL KRAMER AND THE CLIENTS OF MOTT CAPITAL OWN ACAD
S&P 500 (SPY)
Stocks are rising on May 27 on what seems like a stimulus rally, but this time from Europe. The EU plans to inject $750 billion into the economy. For some reason, it looks like a rather small number compared to the relative size fo the EU, but what do I know. Equities markets are moving higher, with the German DAX up another 1.9%. The next level of resistance for the DAX comes around 11,856.Â
Did you get a chance to look at the Dallas Fed Texas Manufacturing Outlook Survey? Mind you; the survey was taken between May 12 and May 20. This is from a state that has reopened. While the data is “better” than last month, the results were now on pare with the declines witnessed in 2008 and 2009, so better, yes, but still pretty horrible. It also suggests more job losses in May. Today we get the Richmond Fed at 10 am.Â
S&P 500 (SPY)
Enough with boring economic details. Currently, the S&P 500 SPY is rising this morning by 1.3% to around $303. As I noted yesterday in midday commentary, the next meaningful level of resistance comes at $306.70. If today’s gains can hold, then the RSI for the SPY will make a new high. So continue to watch that carefully. Premium content – Trends Still Point Higher For Now
Facebook (FB)
Facebook got a price target boost from Citi, going to $275 from $245. At least at this point, the stock is not getting much help. I still think it goes to $191; I guess only time will tell.Â
Acadia (ACAD)
Acadia’s price target was boosted to $53 from $48 at Opco. The opportunity ahead for the company is pretty big should it have positive depression results in the third quarter. The stock has stalled out around $53 a few times now, so it needs to break out soon to avoid a pullback. A drop below $50 probably sets up a pullback to $45.Â
PayPal (PYPL)
PayPal is still overbought, and still an expensive stock on a PE basis. It probably needs to fall further to $130.Â
Have a good one-Â
Mike
Mott Capital Management, LLCÂ 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.Â
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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.