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May 31 – Stock Mentions: AAPL, SMH, BA, SQ
Michael Kramer and the clients of Mott Capital own AAPL
Well, that was not a fun day, and it raises the question of how? How does one invest if this is the new environment in which we live? It is not sustainable. From what many had thought was market-friendly President has suddenly become very unfriendly. Perhaps there is a feeling that because the S&P 500 is up nearly 30% since taking office, the President is willing to gamble and take a hit on the stock market of to 5-6% if means getting his agenda through. But if this behavior continues, it will do a great deal of damage to the mentality of the stock market, which may take a long time to recover. People still live in fear of what occurred in 2008. (Premium content: Tariffs Are Not The Most Important Thing Happening In The Market)
S&P 500 (SPY)
At this point, the S&P 500 appears to be falling along a downtrend, near perfectly. However, if anything positive came out today’s trading, it is the technical pattern that formed, a falling wedge. That is a bullish reversal pattern. It is similar to what we have seen in Apple and the semiconductors in recent days.
Apple (AAPL)
Apple did manage to hold technical support today around $175, and we can see that the stock has broken free from its falling wedge, and it would suggest the stock rebound.
Chips (SMH)
We can see a similar pattern has formed in the Semiconductor SMH ETF.
We can wait and be hopeful. But again, I don’t know what kind of tweets will fly around over the weekend.
Square (SQ)
Square is one stock that does not look healthy. A drop below $61 puts it on a path to $56
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[youtube-feed feed=7]Boeing (BA)
Boeing is also on the cusp of a big break down here, and that could send the stock back to the $325.
That is all for today.
Mike
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Charts used with the permission of Bloomberg Finance L.P. 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.