Subscribe to receive this FREE daily commentary directly in your email
12.11.20
Stocks – DOCU, WFC, F
Macro – SPY, VIX
Mike’s Reading The Markets (RTM) Premium Content – NOW WITH A 2 WEEK FREE TRIAL
- Stocks Drop With More To Come?
- Stocks Drop As Trend Lines Snap
- The Calm Before The Storm – Video
- The Calm Before The Storm
- It May Be Another Rough Day For Overvalued Tech
- Stocks Turn Lower, More To Come
- The Snowflake Convexity Squeeze
Stocks fell on December 11, dropping by around 1%, but managed to stage a typical fabulous Friday comeback. But today’s price action wasn’t shocking and seemed to follow the typical Algo style of trading. However, what mattered most is the trend, and those, for the most part, are several damaged in the short-term.
Today was merely a game of filling the gap.
But, it’s never easy to say how these things will go. However, it would seem to me that lower prices lie ahead. The RSI created a bearish divergence when it failed to make a new high, as the index made a new high.
The number of stocks in the S&P 500 above the 50-day moving average is diverging from the daily prices.
I will have a few more things to review over the weekend regarding this. But at least it seems to me we are getting a few short-term sell signals.
VIX
Additionally, there were some big bets that the VIX rises sharply to more than $50 by March. I reviewed it in the subscriber section this morning. (Premium content Stocks Drop As Trend Lines Snap)
Ford (F)
The other day in a story, I noted that Ford saw some massive option bet it is trading over $11 by the end of 2021. Ford is struggling here, but it has found some support around $9. It could go lower still, from the looks of it, maybe $8.50. You can read in more detail about the options trade in this story; it should be free to view. Ford’s Stock May See A Surge
DocuSign (DOCU)
DocuSign’s results clearly weren’t good enough to keep the stock moving higher. It amazes me how this stock is valued. Even with blow-out results, it is not growing fast enough to support the stock. Crazy. The momentum on the RSI looks horrible; I’m surprised the stock isn’t down more. This should be free to read, too. DocuSign’s Valuation Is Still Ridiculous Despite Strong Results
Wells Fargo (WFC)
Despite my bearish market outlook, Wells Fargo may be getting ready to rise. As strange as that sounds. There was a sizeable bullish options bet in the stock, and the pattern on the chart looks like a bull flag. Perhaps it breaks out towards $33.25. Again you can read more in this free story. Wells Fargo’s Massive Rally May Only Be Starting
Have a good Friday!
-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.
Subscribe to receive this FREE daily commentary directly in your email
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.
Gold Volatility Signals Speculative Behavior
Mott Capital's Market Chronicles September 26, 2025 1:32 PM