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 NFLX, AAPL, TSLA
Good Morning Today is December 7
- S&P 500 futures are pointing to a lower opening of 8 points as of 8:40 AM – It is rising quickly
- The US 10-year rate is at 2.89%
- Dollar Index is at 96.81
- WTI Crude Oil is $51.70
- Critical events for today: BLS Job Report :
- Non-Farm Payroll +155k vs Est +200k
- Unemployment rate 3.7% vs. 3.7%,
- Hourly Wages +3.1% vs. +3.1%
Recap of International Trading:
Hong Kong Hang Seng Index finished the down 35 basis points.
China Shanghai Comp. ended the day flat
UK FTSE up 1.3%
DAX is up 55 basis points.
Volatility to Continue
Futures are pointing to a slightly lower opening for US equities, and have moderated since the weaker than expected non-farm payrolls. For now, the bears live to fight one more day. I would expect their to continue to be heighten levels of volatility.
S&P 500 (SPX, SPY)
Today will be an important day for the S&P 500. The chart below shows the big gap lower yesterday, followed by the typical fill the gap Algo end of day run-up. So, I would like to see some upward movement, with a test of resistance at 2,716, if we should fall on the day the level of support that is most important shall be 2,670.
As I noted yesterday, the price action was very bullish, and my “feeling” was that yesterday was different. At this point, my view has not changed.
Broadcom is trading higher today by 3.5% after reporting better than expected quarterly results. The good news was wireless was stronger than expected due to “upside volumes of legacy phone generations and their North American OEM customer.” That North American customer is also known as Apple.
Tesla had two pieces of positive news, the first from Bloomberg overnight that the company plans to pay its March debt maturity of $920 million by using cash and stock. The bonds have a conversion price of $359.88. Addtionally, Jefferies upgraded the stock to buy from hold and raised its price target to $450 from $360.
Tesla is now trading above resistance around $360, and I continue to think this one is heading back to its all-time highs and potentially higher. I noted on Wednesday the bullish options activity I was seeing which implied shares could rise to around $408.
Netflix needs to get over $285 to move higher to its next level of resistance at $300.
Amazon bounced off support at $1620; I think it may result in the stock rising back to $1760. But I think if it should get to that level this time it keeps going and moves on to $1840.
Apple held support yesterday, and I thought that the Broadcom data suggests things are ok, not great, but ok. Certainly, not worthy of the sharp decline in the stock. If the stock can get over $180, I think it has a reasonable chance to get to $194.
AMD bounced firmly off support yesterday around $20. This one has me a little confused at this point. The RSI is starting to trend higher, and thier is now an uptrend forming in the chart. $22.50 appears to be resistance at this point.
Alibaba held support yesterday at $151 and has a clear uptrend. As long as the stock continues to stay above $151, I think the trend is higher.
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
sp500, yields, amazon, netflix, apple, tesla, broadcom