The VIX May Be Ready To Surge Higher Spelling Trouble For Stocks

The VIX May Be Ready To Surge Higher Spelling Trouble For Stocks

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:

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. 

S&P 500, spx

VIX

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?

vix

Anyway, sorry. Maybe I will be wrong, it does happen.

Tesla (TSLA)

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.

tesla, tsla

Nvidia (NVDA) 

Nvidia failed at resistance today at $262, and that one appears it could head lower again back to around $215.

nvidia, nvda

Square (SQ) 

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.

square, sq

Boeing (BA) 

Interestingly Boeing has a similar pattern. Uh-oh.

Boeing, ba

Alibaba (BABA)

Alibaba has a bullish pattern with that falling wedge and rising RSI. Perhaps it moves back to $201.

alibaba, baba

Anyway, have a good night!

-Mike

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