Entering text into the input field will update the search result below

The Downtrend

Sep. 14, 2020 4:43 PM ETAmazon.com, Inc. (AMZN), MU, NVDA, ORCL, QQQ, SPY3 Comments
Please Note: Blog posts are not selected, edited or screened by Seeking Alpha editors.

September 14, 2020


Macro – SPY, QQQ

Mike’s Reading The Markets (RTM) Premium Content – NOW WITH A 2 WEEK FREE TRIAL

S&P 500 (SPY)

Stocks were mostly higher today, but the rally ran out juice around lunch, and it was more about maintaining the gains, then adding on to them. The S&P 500 finished the day higher by around 1.2%. But it seems there is now a downtrend that has formed in the index. If that is the case, then today's rally should vanish rather quickly tomorrow, with a fill of the gap from Friday to 3,340. (Premium content - A Downtrend Is Born)

Nasdaq (QQQ)

Meanwhile, the Qs have the same kind of pattern with the lower trend line, with the potential to refill the gap at $270.

Option Volume

How the rest of the week goes will mainly be dependant upon the Fed on Wednesday and Quadruple witching on Friday. Call volume was down again, despite the stronger day for stocks. Put volume was weaker too, but that is to be expected on a stronger day.

(Trade Alert)

Call volume was the weakest since the middle of August. The weaker call volumes could be one reason why it feels like some of the thrust in the market isn't there. The dealers don't have to hedge as much stock.

(Trade Alert)

Amazon (AMZN)

It was also a weaker day for Amazon despite the significant market gains. The stock opened higher and filled the gap by days end, finishing around support at $3,100. That support level continues to be a battleground for Amazon, with a break of support triggering a decline to around $2,800.

Nvidia (NVDA)

Nvidia gapped, higher, and I don't expect it to last after investors have time to digest the ARM deal. Nvidia paid a lot for ARM, at nearly 20 times sales, and the deal is dilutive to shareholders, with Nvidia pay a large portion in stock.

Micron (MU)

Micron rallied today following that upgrade but couldn't quite get past resistance around $49.80. My immediate reaction is that the stock works to fill that gap lower.

Oracle (ORCL)

Oracle is hitting up against resistance around $61, with a potential break out sending the stock higher to $66. I noted some bullish betting suggesting the stock continue to rise, even though it is the preferred technology provider to TikTok in the US, whatever that means, and not the owner of TikTok.  Oracle's Stock May Have Even Further To Climb 

Have a good one!


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.

Recommended For You

To ensure this doesn’t happen in the future, please enable Javascript and cookies in your browser.
Is this happening to you frequently? Please report it on our feedback forum.
If you have an ad-blocker enabled you may be blocked from proceeding. Please disable your ad-blocker and refresh.