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August 27 – Stock mentions SPY, IWM, AMZN, NFLX, TWTR, MU
Michael Kramer and the clients of Mott Capital own NFLX
It wasn’t a great day for stocks with the S&P 500 drifting lower by 30 basis points, giving back a good portion of yesterday gains. At the end of the day, not much changed from yesterday.
Russell 2000 (IWM)
What did change from yesterday, is the Russell 2000 which tanked by over 1.35%. It managed to finish the day at a pretty significant level around 1,455. I fear that this index is not going to hold support. If you look at the chart, you can see why I am so nervous about the index not holding support. You can see that the outcome could be disastrous, with the potential to fall back to roughly 1350, should support not hold. It is a drop of about 7% from its current level and more than 15% off its July 31 highs.
Is that bearish enough for you? The biggest complaint among readers is how I’m a permabull. Wrong. I call it as I see it. I talked about this in more detail plus gave a lesson on how I use Bollinger Bands into’s video: It Is Time For Stocks To Sink Or Swim
The last time the Russell 2000 was this undervalued to the S&P 500 was in January of 2008.
Amazon (AMZN)
For the moment, Amazon is holding on to support around $1,750. It too is at a critical level. Should the $1750 level break it could fall to about $1700.
Netflix (NFLX)
Netflix continues to orderly trade lower and seems to be holding the falling wedge pattern. There is a gap that needs filling around $273.40. At this point, that gap looks like a potential option as well.
Twitter (TWTR)
Twitter looks as if it may be getting ready for its next higher towards $46.
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Micron (MU)
I’m not a fan of the shape of Micron’s chart. Support at $42 is critical and must hold, or $38.70 is coming.
I have been seeing a bunch of options activity for AT&T in recent days, and the technical chart is starting to look much better. You can read more here. AT&T: The Trend Is Your Friend
That’s going to be it for today
-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. august 27Â
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Charts used with the permission of Bloomberg Finance L.P. 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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