The Rise of Machine - The Monster Stock Market Commentary

The Rise of Machines – The Monster Stock Market Commentary

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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The onslaught continues. Today seemed to be exactly what  I predicted in yesterday’s commentary. The market is also signaling that a bottom is not in place and there are likely more losses on the way.  For the most part,  it would seem that the ALGO’s are very much having their way and just following the typical daily trading patterns. Gap lower, fill the gap by midday, sell it off into the close.

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The Machines Are Now In Control


The NASDAQ is a perfect example of this today. Gap lower, fill the gap, fail at resistance, sell-off into the close.  The chart below may also suggest that the slope may be shifting into a steeper decline. You can see the downtrend and then change in that direction today.

nasdaq, ndx

Although this sounds scary, it is also likely suggesting that a bottom is within reach, just not yet. Maybe by sometime toward the end of next week.

S&P 500 (SPX, SP500)

The S&P 500 had the same thing happening. We can see in the chart there has now been three changes in the steepness of its slope.

SPX, S&P 500

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2,620 is the next level of support and as you can see we got awfully close today.

Amazon (AMZN)

Amazon was the heavyweight today falling by nearly 8%. On September 4, Amazon had a closing market cap of $994 billion; today is it $200 billion less at $800 billion. Amazing! Should the stock fall below $1,620, then it has a more significant drop to $1450 coming.  The bad news is that 200-day moving average is now acting as resistance.

Amazon, amzn

Even with the 20% decline, the RSI is showing no signs of reversing its trend.


AMD continues to creep towards $16, and I think it probably gets there in the next few days.


Nvidia (NVDA)

Nvidia looks horrible, and I think it may fall to $179.50.

nvda, nvidia

Splunk (SPLK)

Splunk is another stock that has been destroyed, and now it looks like it may fall to $83.75

splunk, splk

Facebook (FB)

Facebook’s chart looks horrible, and it reports results next week. A slow grind to $140 is in the works.

facebook, fb

Apple (AAPL)

Apple, no worries. $215 buyer is holding strong.

apple, aapl

Intel (INTC)

Intel put together a nice day, but still, it struggles to break out.

intel, intc

Biotech (XBI)

It is interesting that biotech actually pieced together a solid day, with XBI finishing flat. The group has been hammered,  but still, there is a hint of an uptrend forming.

xbi, biotech

That is it for a Friday!


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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.

SP500, amazon, nasdaq, spx, ndx, intel, nvidia, amd, splunk, facebook