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11.24.20
Stocks – SQ, NVDA, WFC,
Macro – SPY,
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- A Blow-Off Top Or More To Come?
- Risk Remain Lower, Plus 5 To Stocks To Watch
- Rotation Into Value May Have Further To Climb
- Quiet Monday, Plus A Check On Bitcoin
- Mounting Evidence Supports A Market Drop – Week Ahead
- Stocks Drift, Will Nvidia Save The Day?
- Bonds Signaling Double-Dip Recession?
- 2 Long-Term Theme Ideas And Valuations
Stocks traded higher today, with the S&P 500 rising by 1.6%, and it is getting close to those November 9 intra-day highs. That is likely the next major level of resistance until I have to start digging around to figure out what is next.
If this recent downturn from November 9 until November 20 was wave 4, then it likely means we are now in wave 5, and that means new highs are coming, and the pullback to 3350 is not in the cards for now. If we do clear the high around 3,665 on the S&P 500 futures, the next level I would look for is around 3,710.
Unfortunately, I won’t know for sure until we reach 3,665. Perhaps that happens tonight while I’m sleeping, or it won’t. The RSI is currently at 65.5, which means it could rise some more as well. Meanwhile, the Bollinger bands give us room for higher prices too.
Wave 4 should have been steeper, but it wasn’t; we move on. If we fail at 3,665, we could still get the steeper drop I was expecting. Unfortunately, I try not to give you a double-sided thought process; to cover my ass; I try to give what I actually think. Sometimes I look like a genius; sometimes, I don’t.
Square (SQ)
Square is up 540% since the March lows, think about that. It is crazy, you’d think they cured something, but they didn’t. Even Moderna isn’t up that much, and from the sounds of it, they did actually cure something, like the covid. Hey, I’m not knocking Square, a great concept, but the stock is nuts. It is stupid, is it what it is. Hey, but if you think the best is yet to come for the stock, then good luck.
Nvidia (NVDA)
It is gotta suck to have Nvidia with the stock down over 1% today, with everything else ripping. But hey, another example of a stock that is very expensive, that now grows through acquisition. Imagine how much it would been down if the market went down. There is still that nice double top pattern potentially lurking.
Wells Fargo (WFC)
You can add Wells Fargo to the list of stocks now above their 200-day moving average. The stock was up nearly 9% today, wow. It got a double upgrade from RaJa, to outperform from underperform, with a $32 price target.
Speaking of the number of stock above their 200 moving average is now more than 90%. Could it go higher, sure, 10 more percentage points.
Anyway, that’s it
-Mike
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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.
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