This website uses cookies to collect usage information in order to offer a better browsing experience. By browsing this site or by clicking on the "ACCEPT COOKIES" button you accept our Cookie Policy.

Stocks Rise on November 4 As Risk Sentiment Turns Bearish


Portfolio Manager with Interactive Advisors, CEO of Mott Capital Management




Thank goodness the market still has Nvidia and Tesla. They are about the only stocks holding things together. This market has gotten so stupid. Wells Fargo raised Nvidia’s price target today to $320 from $245, so the market decided, let’s take it there today. So they ran the stock up to $313, more than 17%, with it closing up 12%.


The S&P 500 finished the day up 42 bps, with the RSI now up to 75.

S&P 500

Meanwhile, the Qs are going vertical, with an RSI that is now over 78. If this isn’t an image of euphoria, then I’m not sure what one is then. It certainly looks a lot like that rally into September 2020 or maybe that run-up into January 2018. On top of that, we are above the upper Bollinger band, so we should be at a point where the Qs drop the other way. Like literally at any moment.

QQQ Trust

The VXN continues to trend higher as well, and this is the same formula witnessed at the end of the September 2020 rally before it popped.

Nasdaq Volatility Index

Meanwhile, the AUDJPY currency pair has reversed the other way, indicating that risk sentiment has shifted from bullish to bearish.


Square is falling by nearly 5% after reporting results tonight. What can I say, another overvalued stock that trades with a valuation it doesn’t deserve. I had talked about it for a long time, and it isn’t worth repeating at this point. The handwriting was on the wall when they used their inflated stock price to buy Affirm. If it drops below $230, it goes all the way down to $200.


PayPal (PYPL)

PayPal will report results next week, and this stock keeps dropping, and for good reasons. At this point, $230 becomes resistance and $213 support.


Roku managed to close at $289, which is support. I think it will cut right through support and starting the next leg lower to $228, once the Nasdaq 100 pops, which should literally happen at any moment now.


Originally Posted on November 4, 2021 – Stocks Rise on November 4 As Risk Sentiment Turns Bearish

Disclosure: Mott Capital Management

Mott Capital Management is the portfolio manager for one portfolio offered by Interactive Advisors. Interactive Advisors clients do not invest directly with the Portfolio Managers like Mott Capital Management, and the Managers do not have discretionary trading authority over Interactive Advisors client accounts. The Portfolio Managers on the Interactive Advisors platform simply license their trade data to Interactive Advisors, which then allows its clients to have the same strategy and trading decisions mirrored in their accounts if the Portfolio is in line with their risk score. Portfolio Managers like Mott Capital Management implement their trading philosophy and strategy without knowing the identity of Interactive Advisors’ clients or taking into account these clients’ individualized circumstances.

Mott Capital Management has entered into a Portfolio Manager License Agreement with Interactive Advisors pursuant to which it provides trading data IA uses to offer a portfolio to its investment advisory clients.  Mott Capital Management is not affiliated with any entities in the Interactive Brokers Group.  

Interactive Advisors is an affiliate of Interactive Brokers LLC.

Pursuant to the Investment Management Agreement between Interactive Advisors and its clients, all brokerage transactions occur through Interactive Brokers LLC, an affiliate of Interactive Advisors. The use of an affiliate for brokerage services represents a potential conflict of interest as Interactive Brokers LLC is paid a commission on trades executed on behalf of Interactive Advisors. Interactive Brokers LLC does not consider this conflict material as it does not sell, solicit, recommend, trade against or otherwise attempt to induce Interactive Advisors to place any orders in any products. Interactive Advisors does not offer services through any other broker-dealer.  All trading by Interactive Advisors is self-directed. Interactive Advisors clients acknowledge this potential conflict of interest and authorize Interactive Advisors to execute transactions through Interactive Brokers LLC when they open an Interactive Advisors account. Clients should consider the commissions and other expenses, execution, clearance, and settlement capabilities of Interactive Brokers LLC as a factor in their decision to invest in an Interactive Advisors Portfolio. Interactive Advisors believes it satisfies its best execution obligation by trading its clients’ trades through Interactive Brokers LLC. While there can be no assurance that it will in fact achieve best execution, Interactive Advisors does periodically monitor the execution quality of transactions to ensure that clients receive the best overall trade execution pursuant to regulatory requirements.

Disclosure: Interactive Brokers

Information posted on IBKR Traders’ Insight that is provided by third-parties and not by Interactive Brokers does NOT constitute a recommendation by Interactive Brokers that you should contract for the services of that third party. Third-party participants who contribute to IBKR Traders’ Insight are independent of Interactive Brokers and Interactive Brokers does not make any representations or warranties concerning the services offered, their past or future performance, or the accuracy of the information provided by the third party. Past performance is no guarantee of future results.

This material is from Mott Capital Management and is being posted with permission from Mott Capital Management. The views expressed in this material are solely those of the author and/or Mott Capital Management and IBKR is not endorsing or recommending any investment or trading discussed in the material. This material is not and should not be construed as an offer to sell or the solicitation of an offer to buy any security. To the extent that this material discusses general market activity, industry or sector trends or other broad based economic or political conditions, it should not be construed as research or investment advice. To the extent that it includes references to specific securities, commodities, currencies, or other instruments, those references do not constitute a recommendation to buy, sell or hold such security. This material does not and is not intended to take into account the particular financial conditions, investment objectives or requirements of individual customers. Before acting on this material, you should consider whether it is suitable for your particular circumstances and, as necessary, seek professional advice.

In accordance with EU regulation: The statements in this document shall not be considered as an objective or independent explanation of the matters. Please note that this document (a) has not been prepared in accordance with legal requirements designed to promote the independence of investment research, and (b) is not subject to any prohibition on dealing ahead of the dissemination or publication of investment research.

Any trading symbols displayed are for illustrative purposes only and are not intended to portray recommendations.

trading top