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February 26, 2021
STOCKS – JPM, BAC, CRM, SBUX
MACRO – SPY, TLT
Mike’s Reading The Markets (RTM) Premium Content – FREE 2-WEEK TRIAL
- Friday Stream Session 1.26.21 Starting At 1 PM ET
- Morning Note: Waiting For The Markets Next Major Move
- Live Webcast Session- 2.26.21 12:30 PM ET
- Midday: Stocks Cave As Rates Rise Too Much
- Morning Notes: Rates Are Breaking Out Globally, The Big Risk For Stocks
- Chatboard 2.24.21 – Nvidia Commentary
- Midday: The Dynamics Have Changed
- Morning Note: Yield Breaking Out, Don’t Trust The Rally
- Bear Case: S&P 500 2,860
Stocks had a rough day falling by around 50 bps; the big sell-off came in the final 10 minutes when it was revealed there was about $2.5 billion worth of stock for sale on the closing cross.
The index finally filled the technical gap today at 3,785, where it managed to find support. The index was clearly rejected on a few occasions around 3,850.
Until the index breaks below 3,785, it is tough to know where it could go next. If there is a further drop on Monday, it is likely to be the decisive drop that sends the index on its way lower. It will result in the RSI breaking support at 42, and a clear sign that momentum has shifted lower. I would expect there to be decent support at the 3,650 level if it should come to that.
10-Year
The 10-year finished the day lower at 1.42%. Not surprising to see yields come down some. I expect that they should stabilize, as there is firm resistance in the 1.50 to 1.6% region, with support of around 1.30%
JPMorgan (JPM)
“Value” stock JPMorgan is looking a little bit toppy here. I thought that was the case at $141, and that was wrong. The stock ran up to $147. Still, if I drew the chart out the right way, it looks like a bearish bump and run pattern along with a rising wedge pattern. It suggests a pullback to around $135. The RSI is insanely high at over 81.
Bank of America (BAC)
Bank of America, which is also considered a “Value” stock, is in a similar boat, dropping out a rising wedge pattern of its own with a dip below $34, creating a potential pullback to $29.75.
Salesforce (CRM)
Not a good day for Salesforce, not sure if this a “value” stock, but it might be one soon. The stock is sitting on support at $215. A break of support will send the stock lower to around $191.
Starbucks (SBUX)
A big breakout in Starbucks today out of a bull flag probably sets up a push to around $115.
-Mike
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dropfall or descend to a lower place or levelMore (Definitions, Synonyms, Translation)
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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.
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