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.
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MARCH 25, 2020
STOCKS: TSLA, NVDA, SQ, BA, BABA
MACRO: SPY, VIX
MICHAEL KRAMER AND THE CLIENTS OF MOTT CAPITAL OWN TESLA
Mike’s Reading The Market Premium Service – Recent Titles:
- Strange Times For Sure – Midday 3.25.20
- Stocks Giving Back Over Night Gains – Morning Commentary 3.25.20
- The Virus Will Leave A Lasting Path Of Destruction
- Stocks Massive Rally, But Concerns Remain
Stocks managed to give back nearly 75% of their gains in the final 10 minutes of trading, making it a pretty horrible close. As I noted at the days end in chat, this market can not be trusted. Luckily the index managed to still close higher on the day by 1%, but it had been up by almost 5% at its highs. Ok, so really it gave back nearly 4/5 of its gains, or 80%, still working on fractions for homeschooling, sorry, it’s stuck in my head.
S&P 500 (SPY)
The bad news here is that the index failed to get over 2,550 and also broke the mini-channel that formed over the past few days. I fear this is setting us for something pretty devasting to finish out the week. It would be demoralizing for sure, and that means we probably fill the gap back to 2,270.
The VIX rose today, and there is something brewing there, and I’d almost hate to say it, but it looks like it could be a bullish continuation flag. That means the VIX could be gearing up to go even higher! Anyone at 96?
Anyway, sorry. Maybe I will be wrong, it does happen.
Tesla had a nice move higher and is now consolidating. I think it continues to push higher, perhaps back to $600. It strange, considering my bearish stance on the overall market, but I’m basing it off the charts.
Nvidia failed at resistance today at $262, and that one appears it could head lower again back to around $215.
Square filled a gap, and it appears it is either going to move lower again or perhaps form a cup and handle pattern. Either way, over the short term, the stock is likely finished rising.
Interestingly Boeing has a similar pattern. Uh-oh.
Alibaba has a bullish pattern with that falling wedge and rising RSI. Perhaps it moves back to $201.
Anyway, have a good night!
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