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Michael Kramer owns IWM Calls
The S&P 500 left off on the cusp of a major a break out last week, and so did the Russell. This week, I think the data comes in that suggests the global economy is on the rebound, and earnings continue to come in strong. It will send the S&P 500 into uncharted territory
S&P 500 Break Out (SPY)
The chart of the S&P 500 is fascinating when you look at this new one I drew up. I do not believe this is a coincidence either. Off the 2310 low, the S&P 500 rose higher in the three consecutive series of about 170 points, followed by periods of consolidation.
When the S&P 500 crossed above resistance at 2,860, there were three series of jumps of around 130 points. It would suggest that next move higher for the S&P 500 is to 3,031? If we see the fourth series. Or perhaps a jump to 3030, or 2,990 if we drop to a rise of just 90 points. Get it: 170-130= 40 points 130- 40 points = 90. I am using a starting point of 2,900 for this recent rally.
Based on the timing it could happen within the next 2 weeks.
Russell (IWM)
Meanwhile, we can also see that Russell is on the verge of a significant breakout. I redrew the chart, and you can see the giant ascending triangle. A break out sends the index higher towards 1,683.
That’s it
-Mike
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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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