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.
Otherwise, enjoy the column!
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MAY 19, 2020
STOCKS – AAPL, AMZN, NVDA, WMT
MACRO – SPY
MICHAEL KRAMER AND THE CLIENTS OF MOTT CAPITAL OWN AAPL
Don’t forget Powell and Mnuchin are live today, together, at 10 am.
Stocks are falling this morning, at least for now. They had been up sharply overnight but reversed lower.
The reversal took place all across Europe as well, after the German DAX topped out its April 29 highs.
Interestingly you are seeing the same thing occurring in the FTSE 100 this morning.
S&P 500 (SPY)
Meanwhile, you can see the same pattern in the S&P 500 ETF SPY. So if you are bull, you need the index to push higher to keep this from turning into something the bears would like, a successful retest of the breakdown in the rising wedge pattern, and lower prices. Again, I reviewed this in a premium video yesterday. 3100 Or Bust – Quite Literally
Walmart reported strong first quarter results, and that is helping to lift the markets with the stock up over 4%. I don’t have much here to add at this point, other than $132-133 region is level of strong resistance.
Regardless the only thing that continues to matter is the performance of the big five stocks since they account for 40% of the NASDAQ 100 and 20% of the S&P 500. So how they are performing today will matter much. Again, each of these five stocks continues to lie in precarious spots, all with negative trends.
Amazon appears to be the one that has struggled the most, with share just trading sideways since April 16.
Meanwhile, I still think Apple is at considerable risk of falling back to $265.
I go through all the others in a free video I did over the weekend, in case you didn’t get to see it.
Nvidia is no small fry in the indexes either, and they report results on May 21. So given the massive move higher, one would think they are just going to crush it and must have something speculator to say about future quarters. That would come in total contrast to what AMD and Intel had to say, but who are AMD and Intel, other than Nvidia peers. Still, the stock is trading at an all-time high, so who I am to doubt the collective minds of the matrix, I mean the market.
Anyway, good luck today…
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.