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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MICHAEL KRAMER AND THE CLIENTS OF MOTT CAPITAL OWN AAPL
Good Morning Today is December 26
- S&P 500 futures are pointing to a higher opening of 12 points as of 7:30 AM
- The US 10-year rate is at 2.74%
- Dollar Index is at 96.75
- WTI Crude Oil is $43.07
- Gold:$1,276
- VIX: 35.13
- Critical events for today: Amazon announced a record-breaking holiday season,
Recap of International Trading:
- Japan was up 0.89%
- Hong Kong Hang Seng Index – Closed
- China Shanghai Comp. down 0.26%
- UK FTSE – Closed
- Dax – Closed
FED Rate Hike Watch:
According to the CME, there is now a 66.3% chance there is no rate hike in 2019 and a 21.3% chance of just one rate hike, and 9.1% of a rate CUT.
The Casino Is Open
After a rough Christmas Eve trading session the stock market will re-open again and what happens today will be anyone’s guess. There is an excellent story in the WSJ about the rise of the machines which notes that they represent around 85% of the volume in the market. Not surprising right? Which is why we see such sharp declines and volatility in the market.
S&P 500 (SPX, SP500)
The next level to watch on the S&P 500 is 2,351, after that will be 2,191. Why does 2,191 matter? Because that would erase all the gains, the stock market has seen since the 2016 election.
Russell 2000 (RUT)
The Russell 2000 has already erased all the gains since the election, and this may be the one index to watch. The index is sitting on a critical level of technical support at 1,266. A decline below takes the index to 1,157. Let’s hope that doesn’t happen. Resistance is at 1,311.
Housing Index
The PHLX Housing Sector may be the blame for the sharp sell-off as I noted last night, and this one may be the most important one to watch.
Amazon (AMZN)
Amazon’s stock has fallen to a critical support level, and a further decline could result in the shares tumbling. A drop below $1,293 could result in a decline to roughly $1,188.
Apple (AAPL)
Apple is trading at $146, and the next level of support comes around $142.
Five Below (FIVE)
Five Below is one of those stocks that have weighed on the Russell 2000, and this one looks like it has further to fall to around $82 as it attempts to fill the gap.
Micron (MU)
Micron is on technical support at $29, and a decline below that support level sends the stock lower to $26.50.
Nvidia (NVDA)
Nvidia is sitting on support at $127, and should it decline below support it is likely to refill the gap at $102.
Best of luck today!
-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.
stock market, amazon, apple, nvidia, micron, five below