August 7, 2020

Stocks – 700, AMZN, NFLX

Macro – SPY, QQQ

Mike’s Reading The Markets (RTM) Premium Content – NOW WITH A 2 WEEK FREE TRIAL

• A Long-Term Chart Of The Nasdaq Worth Seeing – Midday
• Morning Call – Transcript
• There Are Too Many Stars Aligning- Morning Call
• The Mother Of Bull Bets?
• Beware – Morning 7.31.20
• The Four Horsemen Ride Tonight
• Yields Are Cracking On Bad Jobs Data
• Fed Paints A Gloomy Outlook
• Bets Pile Up Micron Falls As Much As 10%

MICHAEL KRAMER AND THE CLIENTS OF MOTT CAPITAL OWN AAPL

Markets overseas were a bit volatile in Asia overnight after President Trump signed an executive order against Tencent’s WeChat and TikTok. If you think these are just companies that are somewhere overseas and don’t matter to US investors, you better rethink that.  Tencent shares fell by over 5% last night that and that stock has carefully traded with the other US-traded FANG names. 

Like Amazon, for example. 

and Netflix

Or the QQQs

The same things that attract US investors to the big FANG names attract those investors to companies in this group all around the world. So, either these trades need to separate, or US stocks may have a rough couple of days ahead. Just keep this in the back of your head today. 

S&P 500 (SPY)

The S&P 500 futures are trading down by 40 bps, ahead of the big job report at 8:30. Estimates are for 1.6 million jobs added in July and an unemployment rate of 10.5%. In case you are wondering, the critical level on the chart comes at 3,230. That is the level you don’t want to see the futures fall below. Not saying it happens today, just pointing out the significant support level.

The big resistance on the chart comes at 3,400, then up and away.

Dollar

Watch the dollar today, a strong job report, could send the dollar up sharply. That would help to pressure, gold, and metals lower. Also, it could damage some of those stocks tied to a weak dollar.  The 92.50 level is proving to be some strong support.

Copper

Copper is one of those essential risk-on indicators that you need to watch as well. $2.86 has been strong support for copper that needs to hold. 

Good Luck today

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.