Stocks Drop Looking For Gaps To Fill May Have Further To Fall

By Michael J. Kramer of Mott Capital Management

Founder/CEO at Mott Capital Management, LLC • Dec 9, 2019 at 10:41 PM EST

It was a pretty dull day, with the market falling by just 35 basis points to around 3,135. The day felt directionless for the most part.

S&P 500 (SPY)

It was a pretty dull day, with the market falling by just 35 basis points to around 3,135. The day felt directionless for the most part. The way the market was rolling over mid-day, I thought we’d get a modest pullback, which we did start to see towards the close, and I think it means there is more tomorrow.

Resistance on the chart hasn’t changed at 3,150; meanwhile, at least based on today’s actions, it is looking as if the gap wants to get filled.

S&P 500, spy

Acadia (ACAD)

Acadia fell sharply today, for no particular reason. The stock appears to be partially filling a gap and moving down to support around $48. Could it fall further? It seems possible, but I think it should hold at $48. By the way, the CEO sold his stock as part of a 10B5-1 plan.

acadia, acad

Apple (AAPL)

Apple also fell sharply, filling the big gap higher from Friday.

apple, aapl

AMD (AMD)

AMD also had a rough day, and it appears to be heading lower to around $38.80.

amd

Tesla (TSLA)

Tesla did have a good day and appeared to be trending higher back towards resistance at $347 in an attempt to fill the gap up at $360.

tesla, tsla

Facebook (FB)

Interestingly, Facebook managed to hit resistance at $203 today and failed. It would suggest that the stock fall to around $198.

facebook, fb

Back tomorrow.

Disclosure:

Michael Kramer And The Clients Of Mott Capital Own ACAD, AAPL, TSLA

Disclaimer:

This article is my opinion and expresses my views. Those views can change at a moment's notice when the market changes. I am not right all the time and I do not expect to be. I disclose all my positions clearly, and I do not trade my account on the stocks spoken of in this column unless fully disclosed.
Additional Disclaimer: 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.

STOCKS IN THIS ARTICLE

ACAD AAPL TSLA SPY AMD META

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