Stocks See A Massive Options Induced Rally On May 20

Copper can find some support here, around $4.50, but I think it will break. China is going out of its way to try and control commodity prices to keep inflation from getting out of control. 

Freeport (FCX)

For now, Freeport is holding the uptrend, but I don’t see how Freeport’s stock doesn’t suffer if Copper prices drop. A break of support at $39.30 will set up a steeper decline may be back to $31.50.

(Click on image to enlarge)

Broadcom (AVGO)

Broadcom doesn’t look great, but it is possible; it broke the downtrend in its RSI today, which would be a positive. Again, I’d like to see some follow-through here before deciding if the pattern is bullish or not.

Taiwan Semi (TSM)

Taiwan Semi was held just below resistance at $114ish, but the picture doesn’t look much better. The RSI is still telling us that lower prices lie ahead.

Micron (MU)

Micron tried, but still can’t get over resistance at $81.50, and the RSI is saying lower prices are coming.

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Disclosure: Mott Capital Management, LLC is a registered investment adviser. Information ...

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Barry Glassman 2 months ago Member's comment

$SPX price : 4,132.38 || Change +25.38.