MICHAEL KRAMER AND THE CLIENTS OF MOTT CAPITAL OWN AAPL

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Good Morning Today is December 6

• S&P 500 futures are pointing to a lower opening of 39 points as of 7:15 AM – have improved since 6AM
• The US 10-year rate is at 2.9%
• Dollar Index is at 97.10
• WTI Crude Oil is $50.70
• Critical events for today: Arrest of CFO of Huawei, ADP Private Payrolls

Recap of International Trading:

Hong Kong Hang Seng Index finished the down 2.5%

China Shanghai Comp. ended the day down 1.6%.

UK FTSE down 2.25%.

DAX is down 2.5%

A Fluid Situation

Well if one thing is clear it is that market today are fluid, which may be an understatement. The situation deteriorated rather quickly last night when it was revealed that Canada arrested the CFO of Huawei was arrested. The CFO also happens to be The daughter of the founder.  It puts an end to my hope for a rebound today.  Stupid me!

Certainly not a good round of news for the trade tension, between the US and China. The fall out is causing the global market to fall. The South China Morning Post as interest article on Huawei and there of compliance. Interesting read.

Oh and by the way the arrest happened on December 1, what else happened on December 1? Oh, the big love affair dinner.

Darkest

It is always darkest before the dawn, and although it feels dire today as it should. The charts below suggest the are critical levels of support to watch, that if they can manage to hold may end up being very bullish. But the key here is they need to hold. It will test the resolve of the bulls and prove just how much conviction the bears genuinely have. We shall see.

S&P 500 (SP500)

The S&P 500 closed at 2,700 on Tuesday, and that means the levels of support are around 2,686, then 2670, and 2632, which was the lows the November. That will be the critical level to watch 2,632. As long as that level holds, then there is hope for rebound. But a break below that changes things. It seems bizarre that on Monday it was a question of whether we could approach and rise above resistance at 2,820. Two trading days later the opposite is true.

NASDAQ (QQQ)

The NASDAQ closed at 7158, and the levels to watch are 7,000 and the 6,800.

SPY

The SPDR S&P 500 SPY has support at $262.

Chips

The chip stocks will be one group to watch will be the Chips. The critical levels to watch is 88.50 which was the previous lows on the SMH.

Apple (AAPL)

Apple is another critical stock to watch with its tie to China, and a break below $170 put $164.

Boeing

Boeing is another that is trading lower and approaching support around $320, a break below that seems it back to $300.

Caterpillar (CAT)

Caterpillar is another one to watch, with shares nearing about $125, and drop below that sends it lower to $114. To think it was on Monday that the stock was trading over $140.

Interesting tidbit:  I found this on the SCMP last night. It lists the thing that the US and China confirmed about their G20 meeting,  and contain the “inconsistency” between the two countries. Now, remember one country here is a democracy and always for the freedom of the press. One country is communist and has censorship.  So you can believe whichever side you want.

 

Good Luck Today.

-Mike

Photo Credit Via Flickr

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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