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1/14/21
Stocks – FB, ZM, LMND, GM
Macro – SPY, IWM
Mike’s Reading The Markets (RTM) Premium Content – FREE 2-WEEK TRIAL
- MIDDAY – A Short Squeeze Of Epic Portions
- Morning Note- Waiting On Volatitly To Break
- Bank Earnings Preview – Refocusing Investors Attention
- Midday – Waiting For Movement
- Morning Note- No Noticeable Changes To Outlook
MICHAEL KRAMER AND THE CLIENTS OF MOTT CAPITAL OWN MA, V
Here’s my mid-day audio commentary from today, MIDDAY – A Short Squeeze Of Epic Portions
Well, it was another strong day for the most shorted index, oops, I meant the Russell 2000. The index rose by around 2%, continuing its insane move higher.
I tracked the most shorted stock index from Refinitiv every day on a spreadsheet I provide for RTM subscribers. When stocks like Bed Bath Beyond go up 19% on more than double the average volume, and that type of move is repeated in Cryoport (whatever that is), as Stitch Fix rises almost 14%, followed by a countless number of stocks up more than 5%, which happen to also be in the Russell 2000, it seems hard for the index not to rise. I don’t know how else to think about it.
I tend to think of this as a giant short squeeze in the Rusell 2000 because if this really is about stimulus hopes and dreams, then why would Mastercard and Visa not go up too? I would think that a stimulus would mean more spending, more spending, means payment processor go up. But Visa and Mastercard were crushed more than 3% each day; I happened to own both, so I noticed.
Notice any similarities?
S&P 500 (SPY)
Anyway…The S&P 500 reached Friday’s high, filling the gap and then reversing lower. It could indicate that lower prices come on Friday to finish the week off and a potential retest of 3,700 next week.
Lemonade (LMND)
Tomorrow could be an interesting day and all for Lemonade, especially when Citron does its live Twitter broadcast of why they think it could back to $100. It is certainly possible. Given the stock’s poor trading performance today, as I noted in this morning’s write-up and the deal’s pricing didn’t seem to go very well. (Subscriber content, get the first two-weeks free to try it out – Morning Note- Waiting On Volatitly To Break)
GM (GM)
After saying it will introduce a Corvette SUV, GM is going up again. That will be interesting. The stock is trading just below my target of $52.80 in the after hours, and so now I will have to think about what happens next, if at all. (Should be free to read – General Motors’ Stock May Be Ready To Surge Higher – from 1/7/21)
Zoom (ZM)
Zoom apparently did a good job pricing its deal, and it looks like it may want to fill that gap up around $475. I noted this yesterday in the midday commentary. (Subscriber content – first two weeks free to try – Midday – Waiting For Movement)
Facebook (FB)
Facebook is pretty close to my $242 target, and that is good enough for me. The stock is down about 11% or so since it first broke down, and I have had enough of looking at this one. It is possible for it to go to $230 and fill the gap, but for now, I don’t care what happens; I’m crossing it off my list and marking it a job well done!
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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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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