April 25, 2019
Michael Kramer owns IWM Calls
Michael Kramer and the clients of Mott Capital own Microsoft
- S&P 500 Futures Unchanged
- 10-Year 2.525%
- VIX 13.21
- Dollar Index 98.27
- Oil 66.16
- Japan Nikkei +0.48%
- China Shanghai -2.43%
- Hong Kong HSI -0.86%
- South Korea KOSPI -0.48%
- Germany DAX -0.13%
- UK FTSE -0.50%
China fell hard last night on concerns that stimulus measure may be pared back. The index fell below some essential support and is now at risk of falling below support around 3,000. We do not want to start to see international markets pull back. However, what may be more important is that the RSI is still trending higher.
South Korea (KOSPI)
In yet another blow to our returning growth narrative, South Korea saw its GDP contract in the first quarter by 0.3%. For now, the trends continue to support the KOSPI rising in the future.
We will need to continue to monitor these two markets, carefully.
S&P 500 (SPY)
The S&P 500 is pointing to a flat opening. The chart of the E-mini S&P 500 futures would suggest that the index will break out today and rise above the old intra-day highs of roughly 2940.
The Russell will get its chance also to break out and rise above resistance at 1,593. A break out could send the index to 1,640.
Facebook is trading higher this morning as expected, with the next significant level to watch for at $204.
Xlinix is falling sharply following its results. Unfortunately, I do not know the stock very well. I know it is likely to be a drag on the sector today.
Lam Research is jumping today after reporting better than expected results. The next level of resistance comes at $210. This is the second equipment maker to report solid results; yesterday it was Teradyne. It is a good sign the semi-space continues to see improvements.
Microsoft is trading above $130. I will need to some work on the chart, to figure out what is next.
3M is plunging after posting horrible results, and a drop to $193 seems likely.
Amazon is rising this morning, and it is a big day for them with earnings tonight, and 2025 seems to be on the horizon.
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