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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Tomorrow is When The Balance Of Power May Shift For The Stock Market
MICHAEL KRAMER AND THE CLIENTS OF MOTT CAPITAL OWN SHARES OF AAPL, NFLX, V, MA, TSLA
It was another exciting day in the stock market, but today was different. It was the S&P 500 and the Dow that led the market lower not the NASDAQ! Interesting to say the least. Does it mean something? I do. I think it is a sign that perhaps the tides may be turning. I wrote a premium article today talking about it. The Tides Are Turning
But the big news today, no doubt, was the CPI coming in at 2.3% below estimates for 2.4%. Not sure what you think, but which way does inflation look like it is suddenly trending? (READ MORE FOR FREE: Tomorrow May Be The Start Of A Tectonic Shift For The Stock Market.)
It led to the 10-year falling to that key support level around 3.13%.
With yields hovering around support it makes tomorrow a critical day. Why? Well if yields on the 10yr can fall below support at 3.13%, then I think rates can make their way towards 3%, and that can give some much needed relief to the overall stock market.
S&P 500 (SP500)
The S&P 500 fell to 2716 at the lows, and that level functioned as key support and resistance from April through the end of June. It is likely to give a firm level of support to the market tomorrow. Yeah, we were at these very same prices at the end of June, puts things into perspective. (SEE MORE FOR FREE: The Stock Market Gets Rocked Where Do We Go Next?)
Also, the RSI on SP500 is at lowest levels since August 2015, and then you need to go back to August 2011 to see these RSI levels this low again. It doesn’t happen often. The market managed to rally nicely off those low points. It would suggest to me we are likely to see a sharp snap higher soon.
I put out a piece this morning on levels to watch, and in it, I noted I was watching the $193/194 level in Mastercard, and that was precisely where the price for it stopped falling today. (READ MORE FOR FREE: Important Levels To Watch In The Stock Market For October 11.)
Visa fell to around $132; I was looking for support around 130’ish, maybe the stock it found it early? Perhaps it has some more to fall. I’m uncertain.
Amazon broke 1740 and managed to stop around 1680. The stock looks like it had a nice intraday double bottom. Does that mean a reversal is coming? If it does 1740 is now resistance.
I wrote this morning I was looking for $314 on Netflix, it got pretty close falling to $317. But again, not sure if this one is done falling.
Apple continues to act so well and is staying strong around this $216 level.
Nvidia could be on its way to $217.
Micron has something interesting going on. Double bottom? But that means it needs to rise tomorrow.
Tesla has been very strong at $251, and if I were short this stock, which of course I’m not, I’d be real careful! You may be out to get your head handed to you. I think it is on its way back to $301. Sorry I do.
If that is not enough for you, the banks report tomorrow! This chart on the BKX looks dreadful. Like it is falling to 97 dreadful.
and like JP Morgan could be on its way to $102.
Wow, tomorrow seems like a really big day!
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.
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