Home » 10 Indicators To Watch In The Stock Market For The Week of May 28

10 Indicators To Watch In The Stock Market For The Week of May 28 stock to watch

10 Indicators To Watch In The Stock Market For The Week of May 28

10 Indicators To Watch In The Stock Market For The Week of May 28

MICHAEL KRAMER AND THE CLIENTS OF MOTT CAPITAL OWN SHARES OF NFLX & AAPL

This column is my opinion and expresses my views. Those views can change at a moments 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 listed on the page, and I do not trade my account on the stocks spoken of in this column unless fully disclosed. If that does not work for you stop reading and close the page. Do not bother me or harass me. I make less than $100 a month in advertising fees. Otherwise, enjoy the column!

© 2018 Mott Capital Management, LLC.  Use, publication or reproduction in any media prohibited without the permission of the copyright holder.

Join our 1,119 Daily Subscribers And Get This FREE Commentary In Your E-Mail! 


Follow Mike on StockTwits 

Sign-up for Premium Content                           Let Us Write For You                   Sign-Up For Live Updates

The coming week will be a big week when it comes to data, with inflation and jobs data starting on Wednesday. First, we get ADP private jobs data, with consensus looking for 186,000 jobs created in May, and then 1Q GDP comes later that morning with consensus calling for growth of 2.3 percent. Thursday is personal income and outlays, PCE y/y is expected at 2 percent, while PCE Core ex-food and energy is projected at 1.8 percent. Friday is the employment report, with estimates calling for 185,000 jobs created, and average hourly earnings up 2.7 percent y/y.  You can find more at the Bloomberg calendar, a handy tool.

So, we should expect the week to have a little more volatility following the numbers, each day, but this week will most certainly be all about inflation. When you look at core PCE over the course of the last 10-years, we can see that it has been consistently low.

PCE like the other gauges of inflation, like PPI and CPI, tracks extremely closely to the price of Oil. 

By the way in case you are curious you can see the similarity with oil and PCE ex-food and energy, are not as close.

When it comes to the future of inflation and interest rates, we will need to watch the price of oil. Wages should continue to remain contained as well below 3 percent.

So is it possible that we see some huge spike in inflation worries this week, well anything is possible. Is it likely? I have a decade worth of data saying no. Additionally, one must remember that the data is backward looking, and oil is a real-time barometer of inflation, and so if oil continues to fall come Tuesday, then I suspect rates fall with it, regardless of the reports.

Stocks To Watch

The most important stocks to watch this week, Netflix, Amazon, Apple, Micron, Biogen, Microsoft, P&G, and Coke. Yes P&G and Coke! Really. Remember if rates are falling then the staples, which have been crushed, should see a rotation back into the names. The other stocks are leads in the most important risk-on sectors around, Technology, Chips, and Biotech.

P&G

The chart of P&G is bullish and suggests shares could rise back to $78.20 in the short-term. The relative strength index (RSI) is trending higher and has bottomed out at oversold levels now on two occasions.

PG

Coke

The setup in Coke is quite positive too and looks to be heading back towards to $44.50

coke

Microsoft

Microsoft broke out, and we want to continue to see the stock rise. The relative strength index continues to trend higher as well.

microsoft

Biogen

Biogen has broken out as well, and it could be looking to rise back towards $300.

biogen

Apple

Apple has been consolidating since its post-earnings rally, and a breakout higher from the markets most valuable company, would add to positive sentiment.

apple

Micron

Micron is facing a potentially big breakout. Micron has been one of the hottest stocks around, so we want to see this one continue to stay hot, as it acts as a barometer for the risk appetite of the market.

micron

Amazon

Amazon is knocking on the door of a big breakout too.

amazon

Netflix

There is no doubting that Netflix is the undisputed champion in the market this year, and there is no stock that is more important. If Netflix continues to rise, then I suspect the rest of the market will soon follow.

netflix

Enjoy the long weekend.

-Mike

Just $200 Per Year – Get Your Free 2 Week Trial

Recent Videos:

Oil Down, Yields Down, Dollar Up

Be Careful With Oil, Netflix Breakout

More Positive Signs Develop, Plus Sub Mailbag

The Setup In Stocks Continues To Improve

Getting Long Apple

A Rise Back To 2,800 On The S&P Is In The Works

Free Articles Written By Mike:

Roku’s Battered Stock May Rebound 12%

Walmart’s Stock Faces a 12% Plunge

Nvidia Seen Soaring to Record on Explosive Growth

Netflix Breakout May Lead to 14% Surge

3 Energy Stocks Poised for Big Breakouts

Macy’s Soaring Stock Seen Rising 11% Higher

JPMorgan’s Stock May Rebound to New Record High

3 Stocks Poised to Lead as S&P 500 Breaks Out

Alibaba’s Stock Seen Rising by 18% on Strong Growth

Micron Stock Seen Rising 14% on Raised Forecasts

Big Warning Signs for Starbucks Stock

P&G’s Battered Stock Ready for 10% Rebound

GE’s Breakout May Send Shares 15% Higher

Join our 1,119 Daily Subscribers And Get This Commentary In Your E-Mail! Subscribe

Photo credit via Flickr

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.

© 2018 Mott Capital Management, LLC.  Use, publication or reproduction in any media prohibited without the permission of the copyright holder.

Tags: #sp500 #inflation #oil #yield #microsoft #apple #netflix #amazon #biogen #micron