Subscribe to The Free Market Chronicle and join the 2,713 subscribers getting it for FREE!
August 12 – Stock mentions SPY, SLV, MU, UBER, C, NFLX
Michael Kramer and the clients of Mott Capital own Netflix
Who’s Having Fun?
Stocks had another lackluster day as the summer rolls on with the S&P 500 falling by about 1.25%. Not a good day, but these 1% days have become all too commonplace. There are plenty of things to point for today’s sell-off from the HK protesters to falling yields. Another was the weak new yuan loans in China, another sign that China continues to struggle.
Don’t Fear It
As I mentioned in a video today to subscribers, it isn’t about the 10-2 year yields inverting; it is about the depth and duration of the inversion. That inversion can not only last months but years. So lets not freak out yet, because if the yield curve does invert, it still has much further to go.ย Don’t Fear The Yield Curve
Fed Fund Futures
If there is one saving grace here, it is that the market is pricing in more Fed rate cut, and that could help to steepen the curve slightly. Currently, the Fed fund futures are projecting a fed funds rates of less than 1.5% by January.
S&P 500 (SPY)
The S&P 500 found support today at 2,872 and then formed a descending wedge, a bullish reversal pattern. It would suggest that the recent downtrend reverse higher, towards 2,915 over the short-term.
Micron (MU)
Micron jumped today after the CEO made some positive comments at an industry conference. It appears to have broken out of a downtrend and is heading back to $44.
Silver (SLV)
The SLV is not something we cover often, but I have noticed a lot of call buying in the SLV ETF the last day or so. The technical chart is starting to look bullish, as it approaches resistance at $16.50. Betting That Silver Continues To Rise
Uber (UBER)
Uber continues to get clocked, and I will admit, it makes me just a little bit happy to see it go down. Especially following the lashing, I took from the peanut gallery last week following my negative article. Uber’s Stock May Sell Off After Results
Citigroup (C)
Well, an inverted yield curve won’t be good for the bank stocks, and that is one reason why C is likely going back to $61.
Netflix (NFLX)
Netflix had a pretty solid day; maybe it is the start of that push back to $321.
-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.