10 Predictions For The Week Of July 27
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.
July 25, 2020
Stocks – AMZN, AAPL, GOOGL, SHOP, FB, PYPL, BA, AMD
Macro – SPY, QQQ
Mike’s Reading The Markets (RTM) Premium Content – $35/Month or $300/Year
- It's All About The Risk-On Trade - The Look At The Week Ahead
- EPS Trends May Be Stabilizing, Positive For Long-Term View On Stocks
- How Low Can Markets Go If The Uptrends Break
- Trends Suggest Lower Prices Lie Ahead – Midday
- Bears Circling In On Apple
- Uptrends Breaking Signal Bearish Turn
- The Momentum Trade Is Breaking
- Morning Write-Up
- AMD Breakout, Markets Holding – Midday
MICHAEL KRAMER AND THE CLIENTS OF MOTT CAPITAL OWN AAPL AND GOOGL
It will be a busy week for the markets with loads of economic data, earnings, and an FOMC meeting. It will be likely to set up a trend for the remained of the summer with positive news to help supply the market with the fuel needed to push shares higher, while disappointing results in sending shares lower. (RTM Premium content - It's All About The Risk-On Trade - The Look At The Week Ahead )
S&P 500 (SPY)
The S&P 500 finished the week off its highs and found itself in a dangerous spot as it attempts to hold on to a critical support level. The S&P 500 had been trending higher since the end of June, forming a couple of bullish patterns along the way. But now that uptrend is broken. A drop below 3,200 sets up a drop to around 3,180 but triggers the possibility for a decline to approximately 3,115. Additionally, the RSI has seen its uptrend broken as well, suggesting the index test and falls below 3,180. (RTM Premium Content - How Low Can Markets Go If The Uptrends Break)
NASDAQ 100 (QQQ)
The NASDAQ 100 finds itself sitting on a crucial uptrend, and break of that uptrend triggers a sell-off to around 9,760. The RSI trend has also changed from higher to lower.
Amazon (AMZN)
Meanwhile, Amazon will report results on Thursday afternoon, and this stock is searching for its next level of support, which comes around 2,800. A drop below the uptrend can quickly send shares to approximately 2,450.
Apple (AAPL)
Apple will report results on Thursday afternoon also, and it has already broken its uptrend. A drop below $348, sets up a further decline to around $330. Again, the RSI here is pointing to lower prices. (RTM Premium Content - Bears Circling In On Apple)
Alphabet (GOOGL)
Alphabet will report on Thursday as well, and this stock finds itself at critical support at $1,500. Again the RSI, points to lower prices, with a support at $1,430.
Facebook (FB)
On Wednesday afternoon, Facebook will report results, and this stock has struggled for a few weeks now. Again, the RSI points lower, and the stock has stalled around $240. I think the stock falls back to $211.
PayPal (PYPL)
PayPal will also report results on Wednesday afternoon, and this stock has soared in 2020. But it seems like that big run has come to an end. There is a giant gap to fill around $124. While I don't think the gap gets filled this week, a drop to $151 seems possible.
Shopify (SHOP)
Shopify will report results on Wednesday morning. This stock has seen its valuation rise to crazy levels. I still tend to think this stock heads lower to support around $742.
AMD (AMD)
AMD will report on Tuesday afternoon, and this stock broke last week. It has probably run-to-far-to-fast, and pulls back to and retest support at $59. (RTM Premium Content - AMD Breakout, Markets Holding – Midday)
Boeing (BA)
Finally, Boeing will report on Tuesday morning, and the stock has formed a bearish descending triangle, which sets up a decline to $125.
Have a great Sunday!
Mike
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