Stocks Are Poised To Rise on August 6, But For How Long?

August 6 – Stock mentions SPY, TSLAWealth Strength IndexAAPL is Extremely Up and trending Up, NFLXWealth Strength IndexAAPL is Extremely Up and trending Up, ORCL, AMD, FBWealth Strength IndexAAPL is Extremely Up and trending Up

Michael Kramer and clients of Mott Capital own TSLAWealth Strength IndexAAPL is Extremely Up and trending Up and NFLXWealth Strength IndexAAPL is Extremely Up and trending Up

US Markets

  • S&P 500 Futures +24.75
  • VIX 21.78
  • 10-Year 1.75%
  • Oil $54.91
  • Dollar 97.54

International Markets

  • Shanghai -1.56%
  • HSI -0.67%
  • Nikkei -0.65%
  • KOSPI -1.51%
  • DAX +0.58%
  • FTSE +0.05%

China Yuan

Calm has returned to the market at least for now as the Chinese Yuan strengthens slightly today to around 7.05. Should the yuan continue to strengthen it likely to calm investors nervous, and should it weak it will put investors on edge.

yuan

yuan

Dollar/Yen (FXY)

The USDJPY should be monitored as a fear gauge. Yesterday the yen strengthened materially versus the dollar, as this can be seen as a safe-haven trade. A return to 106 would be a positive and sign that investors nerves are calming. However, a drop towards 100 would suggest that investors are growing more anxious.

yen

yen

S&P 500 Futures (ES)

The S&P 500 futures had touched a low of about 2,775 overnight, and to this point, it has rebounded to around 2860, a significant overnight reversal.

S&P 500, spx

S&P 500, spx

S&P 500 (SPY)

But the significant level to watch in the S&P 500 for August 6 and what has now become resistance is around 2875 to 2880. At this point, it worth proceeding with caution. As we know from past experiences, market sell-offs such as yesterday’s are usually never one and done. Additionally, gaps higher on the open are typically sold. Therefore one should proceed with caution for a variety of reasons.

S&P 500, spx

S&P 500, spx

So we will continue to watch an wait.

Tesla (TSLAWealth Strength IndexAAPL is Extremely Up and trending Up)

Tesla has held up reasonably well the downdraft over the past few days, and support at $225 continues to be reasonably stable. It does suggest that $253 could be within reach.

tesla, tsla

tesla, tsla

Netflix (NFLXWealth Strength IndexAAPL is Extremely Up and trending Up)

NFLXWealth Strength IndexAAPL is Extremely Up and trending Up to this point has held the post-earnings lows around $305. But the problem is that now resistance has moved to $321 from $342.

netflix, nflx

netflix, nflx

Oracle (ORCL)

The gap for Oracle is closing, and ORCL could very well continue to fall towards $51.

oracle, orcl

oracle, orcl

AMD (AMD)

AMD is rebounding some, but resistance for AMD is around $28.60. amd

amd

Facebook (FBWealth Strength IndexAAPL is Extremely Up and trending Up)

Facebook fell to support at $180.60, and that means that resistance comes at $186.10.

facebook, fb

facebook, fb

Good Luck today

-Mike

This article appeared first on Mott Capital Management.

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