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October 5, 2020
STOCKS – NVDA, COST, SHOP
Macro – FXE, UUP
Mike’s Reading The Markets (RTM) Premium Content – NOW WITH A 2 WEEK FREE TRIAL
- How To Find Technical Trends And Levels
- Re-Testing
- APPLE’S STOCK FACES FURTHER LOSSES BASED ON OPTIONS BETTING
- Stocks Point Higher As Monday Never Fails To Disappoint
- 5 Themes For The Week Of October 5
- Bearish Pattern Persist, Lower Prices Likely -Midday
Not great follow through this morning with most major markets trading around the flat region. The S&P 500 is trading lower by about 10 bps, while the Qs are trading down around 20 bps. Not much in the way of newsflow moving the markets today, just more of a modest pullback following yesterday’s strong move higher.
Euro (FXE)
I noticed this morning that the ECB might be ready to inject a fresh round of liquidity into the system and potentially cut rates. The bigger potential impact is the effect this is likely to have on the euro, which was reached almost 1.2 to the dollar. A weaker euro is something that would help the region fight off deflationary forces and help with growth.
Dollar Index
The more important piece is the effect this is likely to have on the dollar, which means it goes stronger. A stronger dollar is negative for the risk asset classes of the market. We have already seen some of the effects of a strong dollar over the past few weeks. Should the dollar begin to strengthen further, it is likely to weigh even more.
Nvidia (NVDA)
Nvidia received many price target increases today following its GPU technology conference. I’m really not sure how much more Nvidia should be worth because it is already pretty lofty prices. The stock remains to move higher, in this nearly perfect trading channel. Until the uptrend breaks, it seems like it is hard to be against this one.
Shopify (SHOP)
Shopify’s price target was raised at KeyBanc today $1,250 from $1,150. The stock appears to be in the middle of a broadening wedge, with room to go to around $1,200.
Costco (COST)
Costco was upgraded to buy with a $400 price target at Barclays. The stock appears to be in a consolidation mode at the moment, moving in a wide sideways range.
That is all for now.
Mike
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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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