Subscribe to receive this FREE daily commentary directly in your email
MAY 5, 2020
STOCKS – DIS, C, BABA
MACRO – SPY
MIKE READING THE MARKET PREMIUM CONTENT –
- Gap Fills Nearly Complete, Watch For Reversals
- Getting For Big Data Day – Morning Commentary
- Waiting On Data- Midday
- Stocks Falling With Significant Risk – Morning Commentary
- Volatility May Be High With Significant Downside Risk Starting This Week
The S&P 500 rose by 90 basis points on May 5, to close at 2,868. It wasn’t as great a day as it sounded. The S&P 500 had been up around 2% at 3 PM, and then the Fed’s Vice Chair Richard Clarida through a dose of reality on the market, and well, a straight line down.
The ISM non-manufacturing report was better than expected at 41.8%, a pretty horrible number. The Atlanta Fed GDP is now forecasting a second-quarter drop in GDP of 17.6%. We still have ADP Private payrolls tomorrow, initial claims on Thursday, and the BLS job report on Friday!
Perhaps Clarida gave the market a dose of what it needed, the idea that economic reopening wasn’t going to be a lightswitch flip. He noted it is going to take some time for the labor market to recover. No kidding, it’s going to take some time to recover. It took six years for the labor market to return to 2008 levels. It took three years for the labor market to return to 2001 levels. Those declines were much smaller by comparison. How long will this take?
It would seem that today’s rally may only amount to a be a gap fill from last week’s sell-off. If that proves to be the case, the next move in the index should be lower back to 2,800 and perhaps 2,730. I talked about it and wrote this up in today’s midday commentary – Gap Fills Nearly Complete, Watch For Reversals.
Disney (DIS)
Disney shares were dropping some tonight after reporting better than expected revenue, on weaker earnings. Again, this company is getting hit from nearly every angle. The stock is falling below support at $100 to $102 region, with plenty of room to continue lower to $92.85.
Alibaba (BABA)
I noticed some bullish options betting today in Alibaba, and the potential for the shares to rise to around $210. Free story – Accelerating Growth May Help Alibaba Surge After Results
Citigroup (C)
Citigroup finished the day lower by 2.6% and one the uptrend. A break below sends it to $41.20. I’m keeping a close on these banks and rates ,and you should too.
Anyway, that will be all for today. Back in the AM
-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.
Subscribe to receive this FREE daily commentary directly in your email
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.
Market Rallies Into Tightening Liquidity Window
Mott Capital's Market Chronicles November 14, 2025 12:40 PM