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MAY 27, 2020
STOCKS – FB, AMZN, MU, CRM, AAPL
MACRO – SPY, QQQ
MIKE’S READING THE MARKET PREMIUM CONTENT –
- Thinking About Where Stocks Go Next
- Nearing A Major Turning Point -Midday
- Options Bet Indicate Apple May Drop Soon
- Copper And Stocks – Morning Commentary
- DEALERS HOLDING THE S&P STEADY
MICHAEL KRAMER AND THE CLIENTS OF MOTT CAPITAL OWN AAPL
Well, it was another exciting day in the world of the stock market. We had a repeat of what happened at the end of day Tuesday, and the reverse of what happened yesterday, with the S&P 500 falling by 1.5% from peak to trough, in the final hour. It was worse for the NASDAQ falling by 2%. The amount of volatility in the equity market seems to be getting a little bit out of hand, and I can only wonder what this is setting us up for, likely something not good is brewing.
There is a very curious trade that is happening in the market and is not as easy as the market is going up on hopes of a V-shaped recovery. It is much more detailed than that, involving Algo’s, options traders, and dealers driving just one massive momentum trade, and when it breaks, it is likely to result in some significant pain. I’m am by no means saying it will result in a retest of the lows, but it doesn’t mean we can’t peel off 10 to 15% very quickly when the trade finally snaps. I reviewed it all in a video today – premium content Thinking About Where Stocks Go Next
The S&P 500 does have a mini-uptrend, which, if broken, could result in a decline to around 2,950 or 2,900. The upside is limited to approximately 3,115.
Copper
Copper is starting to trend lower, and we need to watch this very, very carefully.
NASDAQ (QQQ)
For some reason, copper seems to have something in common with the NASDAQ Qs. So, where copper goes may tell us about the future of the momentum trade.
Apple (AAPL)
Apple still looks weak to me, and today I saw a pretty big option bet suggesting shares move lower. For now, I think $295 is the next stop. Premium content – Options Bet Indicate Apple May Drop Soon
Salesforce (CRM)
Salesforce is falling after giving what I thought was disappointing guidance. As long as the stock holds support at $172, all should be well. If it breaks $172, look for $165.
Micron (MU)
Well, Micron didn’t break out today, and instead failed at resistance for a third time, not good. So we could have a triple top pattern forming or a head and shoulders pattern. Either way, they are both bearish and indicate that shares fall. We need the stock to fall below $42 to know for sure.
Facebook (FB)
I’ll repeat it, just in case you might have forgotten. I still think Facebook is heading to $191.
Amazon (AMZN)
Just in case you forgot, I think Amazon is going to $2,285, with incase odds of a drop to $2,100.
-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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