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.
Otherwise, enjoy the column!
Subscribe to the Monster Stock Market Commentary and join the 1,714 subscribers getting it for FREE every day!
Michael Kramer and the clients of Mott Capital own Alphabet and Tesla
Michael Kramer owns SPY calls
The week of April 1 will have tons of economic data, with PMI’s galore from around the globe. The first bit of data comes tonight on March 31, with China manufacturing PMI. Wednesday will be the ADP jobs data and Friday is the BLS jobs report. Plenty of data to move markets this week.
S&P 500 (SPY)
The good news is that the S&P 500 saw a big break out at the end of the day on Friday rising above 2,830. It would suggest the index is likely to continue higher towards the gap I have looked for around the 2,850 to 2,860 region.
The Russell 2000 (IWM)
The Russell also had a nice move higher on Friday rising above 1,535. The next region of resistance I am looking for comes around 1,562.
Amazon looks as if it is getting ready for a big break out this week. I was talking about this in StockTwits chatroom on Friday with subscribers. I noted that sometimes changing time intervals can help you see something you might not otherwise see. When we look at Amazon on the hourly chart, we can see a bull flag, and that is a bullish continuation pattern. It would suggest to me the stock rises to around $1,980 over the next few weeks.
It is not a good sign that Facebook still can’t rise beyond this $166 region. Even worse is that volume is really drying up now. With the stock unable to lift it would suggest to me the buyers may be thinning out. The RSI is also trending lower, which indicates that the stock continues to fall. Sorry, I’m still looking for that elusive gap fill back to $148.
Alphabet fell back to support and the uptrend at $1,175. The stock still has everything going it’s way and will likely continue to push towards $1,250 this week.
Nvidia appears to be finally breaking out too. The stock has held support at $178 very well. The next significant level to watch is around $199.
AMD is holding the uptrend, and I think it breaks out above $25.70 this week and makes that push towards $29.40. The RSI is still trending nicely higher as well suggesting the stock continues to rise.
Boeing has really held on to support at $371. It is beginning to look like there is an excellent chance for the stock to rise back to $420 over the coming weeks. But remember the rules about gap; once they fill they resume their previous trend. The question –which way is the trend now? Depends on what happens at that $420 region of resistance.
Lots of moving parts on Nike recently. But the chart looks ok, and there is a good chance the stock fills the gap back at $87.
JD is breaking above resistance at $30. The stock is probably now on its way back to $34.80
Everyone will be watching Tesla’s delivery numbers this week. That RSI just stubbornly continues to trend higher, and for that reason, I continue to believe this stock is heading higher over the longer term. I think we see $300 before we see $260.
The Bloomberg model 3 tracker suggests Tesla produced 80,050 units in the quarter. They have an outstanding record of getting pretty close. We shall see.
Have a great week!
Read last weeks predictions to see how we did: 12 Monster Stock Market Predictions For The Week of March 25
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.