July 28, 2020

Stocks  – AAPL, AMZN, MU

Macro – SPY, QQQ

Mike’s Reading The Markets (RTM) Premium Content – $35/Month or $300/Year

• Downward Trend Are Still In Place
• Stock A Bit Weaker – Morning Commentary
• Recent Move Lower Likely To Continue- Midday
• S&P 500 Put Buyers + Dollar’s Gloomy Message
• Big Option Bet Suggest Market Has Seen Its Highs – Morning
• It’s All About The Risk-On Trade – The Look At The Week Ahead
• EPS Trends May Be Stabilizing, Positive For Long-Term View On Stocks
• How Low Can Markets Go If The Uptrends Break
• Trends Suggest Lower Prices Lie Ahead – Midday

MICHAEL KRAMER AND THE CLIENTS OF MOTT OWN AAPL

Stocks finished the day lower, with the QQQ falling by around 1.3% on the day. The market had been pretty tame all day but then sold-off at days end, as Congress has yet to come up with agreement over the next stimulus bill. Additionally, the Qs managed to fail at a pretty strong downtrend, which helped to accelerate the selling. 

The significant level to watch for the Qs comes at $254. It is where the long-term uptrend from April lies. A break of this uptrend would result in a great deal of damage to the market overall. With the FOMC press conference tomorrow, it could be a huge day. 

As I have been noting since the second week of July, the bearish putting betting has just been building and building in the Qs.

S&P 500 (SPY)

The S&P 500 was not immune to today’s selling pressure, either.  It dropped by around 65 bps. The S&P 500 seems to be in a much safer place than that of the NASDAQ 100. 

More recently we have been seeing the put buying move in the SPY – (Mike’s RTM Premium content – S&P 500 Put Buyers + Dollar’s Gloomy Message)

Apple (AAPL)

Apple did not have a good despite reports that the iPhone launch will occur in September despite reports from last week it won’t. I noted in the midday that Apple did not respond well to the news, and I found that to be very odd. When stocks don’t respond to positive news positively, it means they are going lower, not higher. I don’t like this set up going into results on Thursday. (Mike’s RTM Premium content – Downward Trend Are Still In Place)

Amazon (AMZN)

Amazon now has a downtrend in place, and that is not good news for the stock. Like Apple, the setup looks poor going into Thursday. 

Micron (MU)

I noted in an SA article today that Micron stock is seeing some bearish betting and that a drop below $49.80 triggers a decline to $45.50.  Micron’s Shares Are Facing A Steep Sell-Off

That’s all I have the energy for today, I’m drained, and my head hurts from thinking to hard. 

-Mike

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