October 9 – Stock mentions: SPY, CSCO, TSLA, SHOP, ROKU, JPM

Michael Kramer and the clients of Mott Capital own CSCO and TSLA

If you missed my presentation this afternoon you can watch the replay here.

MACRO

Stocks rose on October 9. Today was in hopes of a trade deal. Yesterday those hopes were dimming; today, they were brightening — whatever, who cares.

Let’s look at the chart; it is bound to be more informative.

S&P 500 (SPY)

The general direction in the chart is higher, and there is still that gap left to fill up to 2940. My gut says the S&P 500 rises to that level of resistance. That is also where the downtrend lives. To say that 2940 is a crucial region of resistance is an understatement.

The number of stock above their 50-day moving average is still below 40% and hardly moved today, remaining at the lower end of the range.

Anyway, I don’t think anything major changed today in terms. It was a step in the right direction, but it does point to tomorrow potentially being a make or break moment in terms of the course the market goes next.

The downtrend, the gap, and resistance all converge tomorrow.

The Fed

I am beginning to think that the Fed may have as many as three rate cuts ahead of it. I talked about why I thought that was the case in a video today. Here’s Why The Fed May Cut Rates 3 More Times

STOCKS

Roku (ROKU)

Roku had a strong day after breaking the downtrend. It surged by 9% to finish around $118. It didn’t get to $122, but it is likely heading there. I did note yesterday on my mid-day update that I though Roku could be heading higher to $122. Which was a change in my view from the morning write-up. Stocks Fill The Lower Gap

Cisco (CSCO)

Cisco was up some today, and I wrote a premium article talking about why I thought the stock could rise to around $49.30 in the weeks ahead.  Betting Cisco Rises – I give you the first two weeks to try it for FREE, if you hate it you can cancel. 

Tesla (TSLA)

Tesla appears to be forming a symmetrical triangle, which is usually a continuation pattern. In this case, it would indicate the stock is likely to rise, perhaps back to $261.

Shopify (SHOP)

I’m not sure what is happening here with SHOP, but it isn’t looking good. The stock is now trading sideways through the mini-uptrend that formed. It is also once again failing at the $315 region. Not good. It may need to fall back to $285 again before it goes anywhere else.

JPMorgan (JPM)

JPMorgan, like many of the bank stocks, finds itself at an interesting point in time. The uptrend is clear, The question where does it go next? At this point, my instincts say it goes lower to $106.

Have a good one.

-Mike