Technology Stocks Rip Higher In Buying Frenzy

This column is my opinion and expresses my views. Those views can change at a moments notice when the market changes. I am not right all the time and I do not expect to be. I disclose all my positions clearly listed on the page, and I do not trade my account on the stocks spoken of in this column unless fully disclosed. If that does not work for you stop reading and close the page. Do not bother me or harass me.

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July 20, 2020

Stocks – ACAD, AMZN, NVDA, GE

Macro – QQQ

Mike Reading The Markets Premium Content – $35/Month or $300/Year

MICHAEL KRAMER AND THE CLIENTS OF MOTT CAPITAL OWN ACAD

Stocks rose today, in what was one the strangest rallies I have seen in some time. The market had a sense of panic to it, just as much in the way stocks fall. It could be there was some short-covering to today’s rally because it was only the technology names that rallied.  

It seems that the Qs will want to continue to climb, and I would think, at the very least, they will want to retest the highs from last week around $270.  Perhaps, some of this is merely reshuffling from the options expirations as dealers needed to reposition themselves. 

After a while, this game becomes incredibly confusing and frustrating, because mostly I try to form my opinion on what I see in both options and technical trends, for this daily trading stuff. My longer fundamental views are in a sperate basket. Last week all of the trends and options betting were pointing lower. Then days like today come along, and it is incredibly frustrating. 

Nvidia (NVDA)

Nvidia was up today, but the stock is in the same position it was in last week, and so, therefore, nothing changes in my book. I still think the stock is heading lower. 

GE

GE didn’t have a great day, but again there was bullish betting in this one with size. It would suggest that prices eventually go higher, but it may take until after earnings for them to happen.  (premium content – Bullish Betting Returns To GE)

Amazon (AMZN)

Amazon was up nearly 8% today. So that you realize that is over $100 billion in Market Cap. That is bigger than many companies in the S&P 500. That is a tremendous move. The stock stalled at resistance at 3,200. I don’t think this mania lasts, and we reverse lower. I still 2,800. 

Acadia (ACAD)

I am very saddened that pimavanserin didn’t prove efficacy in depression. It was very disappointing. I am happy to hear that the FDA did accept the companies sNDA for pimavanserin in Dementia-related psychosis; the big positive is that the FDA is not planning an ADCOM. It was primarily expected there would be an ADCOM, so the fact that it will not be is positive. The stock is trading down after hours, to around $49. The stock has reliable support at $48. 

Anyway, that’s all

-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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