The Bulls Last Stand?

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.

Otherwise, enjoy the column!

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July 24, 2020

Stocks  – AAPL, 

Macro – QQQ, SPY

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

MICHAEL KRAMER AND THE CLIENTS OF MOTT CAPITAL OWN AAPL

If you are bull, you should feel good about today for a couple of reasons. First, the QQQ ETF quickly tested support around the $252 level, and it held. Additionally, the S&P 500 futures tested 3,200 a few times, and it held. Those were both significant levels and good news for the bulls. In a more fragile market, they would have snapped, and that would have sent in a wave of Algo selling.

The bad news, because there are also two sides to the market, are these facts. First, the NDX now has a clear downtrend on the RSI. It tells me one of two things, the trend in the NDX is either lower or sideways, but not higher. We may also have a double top that formed in the NDX but it is too close to call at this point.

Second, the uptrend in the SPY is officially broken. 

Copper officially closed below its uptrend. 

Meanwhile, Apple has fallen below its uptrend for the first time since April 1, and its RSI is at the lowest levels since April 21. I also saw some bearish options betting today for Apple. (Premium content – Bears Circling In On Apple) 

Yes, the bulls made an excellent stand today, my concern is that damage has already been done, and there wasn’t enough to repair the charts from that damage, today. Additionally, with copper falling below its uptrend, it almost confirms that the bullish risk-on momentum trade may have seen its best days.  Am I concerned about the health of the rally from this point? I am. (Premium content – How Low Can Markets Go If The Uptrends Break)

anyway, moreover the weekend

-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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