Stocks Slump On July 7 Closing At The Lows Of The Day
Growth, Long/Short Equity, Momentum, Macro
Seeking Alpha Analyst Since 2014
I am Michael Kramer, the founder of Mott Capital Management and creator of Reading The Markets, an SA Marketplace service. I focus on long-only macro themes and trends, look for long-term thematic growth investments, and use options data to find unusual activity.
I use my over 25 years of experience as a buy-side trader, analyst, and portfolio manager, to explain the twists and turns of the stock market and where it may be heading next. Additionally, I use data from top vendors to formulate my analysis, including sell-side analyst estimates and research, newsfeeds, in-depth options data, and gamma levels.
Summary
- THIS IS FREE TO ALL FOLLOWERS.
July 7, 2020
STOCKS – NVDA, ACAD, INTC
MACRO – SPY, QQQ
Mike Reading The Markets Premium Content – $35/Month or $300/Year
- Markets Setting Up For 5-6% Dip
- Downwards Trends Remain
- Nvidia Is Priced For Perfection, May Have Topped Out?
- Stocks Trying To Breakout Ahead Of Data
- 3 Keys To The Week Of July 6
- Square May Drop By As Much As 20%
- Earnings Trends – 7.4.20
MICHAEL KRAMER AND THE CLIENTS OF MOTT CAPITAL OWN ACAD
Stocks had a wild trading session, starting the morning lower, then rising, and finishing the session on the lows of the day, with the S&P 500 down over 1%. At this point, it seems there is a good chance that the S&P 500 works its way lower still and tries to fill that gap around 3,130.
The index just continued to fail all day at that 3180 region, picking from where it left off yesterday. It was also unable to surpass the gap fill from mid-day June and February downtrend.
The Qs also turned lower today with the potential to work their way to the lower end of the channel once again. I went through this a little bit more this morning in the audio commentary; there is more to this than just the charts. - Markets Setting Up For 5-6% Dip
10-Year
10-year yields are on the brink of a significant break down once again, with a decline below 63 basis points.
Nvidia (NVDA)
Nvidia's rising wedge pattern is nearly complete; at this point, it just needs to fall below that lower uptrend. I think it will and then drop to $350 on the way. Again, I highlight this along with some options trades, and an insane valuation in this write-up yesterday. Premium content - Nvidia Is Priced For Perfection, May Have Topped Out?
Acadia (ACAD)
Acadia had an awesome day finally breaking out and jumping to a record high at $57! It got an upgrade from Stifel of all places, the analyst over there hasn't been a fan of Pima over the years, so I view this as a positive. I think the stock still has further to rise, perhaps $61.
Intel (INTC)
Intel looks lousy until to break out at $59.75, and an RSI that is drifting lower. I think $56 is the next stop. I had thought initially it might go higher, but that is unlikely at this point.
Until tomorrow
-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.
Seeking Alpha's Disclosure: Past performance is no guarantee of future results. No recommendation or advice is being given as to whether any investment is suitable for a particular investor. Any views or opinions expressed above may not reflect those of Seeking Alpha as a whole. Seeking Alpha is not a licensed securities dealer, broker or US investment adviser or investment bank. Our analysts are third party authors that include both professional investors and individual investors who may not be licensed or certified by any institute or regulatory body.