Home » 12 Monsters Stocks To Watch For the Week of September 24

12 Monsters Stocks To Watch For the Week of September 24

12 Monsters Stocks To Watch For the Week of September 24

12 Monsters Stocks To Watch For the Week of September 24

MICHAEL KRAMER AND THE CLIENTS OF MOTT CAPITAL OWN SHARES OF AAPL, SWKS

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!

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The week of September 24  will be a busy one for stocks, with the FOMC decision on interest rates on Wednesday afternoon, revised second-quarter GDP on Thursday, and inflation data on Friday.  Then through in the UN General assembly in NY, and there are plenty of things that could potentially derail the stock market.

However, based on recent trends in stocks, the economy, and earnings, a derailment is unlikely. The market has effectively priced in a rate hike this week, and most likely another one for December. I still happen to think there are plenty of reasons for the Fed not to raise rates, but that doesn’t mean I’m not aware of the fact they most likely will raise rates.

Sector Rotations

Impressively the stock market has held up very well since the beginning of September rising by 1%, despite the “FANG” stocks down by about 2 percent or more.

AMZN Chart

AMZN data by YCharts

That because the industrial, healthcare and material stocks have led the way. That is a pretty big reversal from what we have for most of this year.
^SPX Chart

^SPX data by YCharts

These big pharmaceuticals companies have torn it up, Pfizer, Lilly, and Merck are up by more than 20% each this year.

LLY Chart

LLY data by YCharts

The stocks that look like they have more upside, that hasn’t seen the big returns are Johnson and Johnson, and Bristol Myers.

Johnson and Johnson (JNJ)

Johnson and Johnson is approaching technical resistance at $145, and should the stock rise above that level; I think it could extend its rally into the mid-150’s.

jnj

Bristol Myers (BMY)

Bristol is another stock that looks pretty good. It already broke out and may be on its way to $65.50. Should the stock rise above resistance it has room to climb to $70.

bmy, bristol myers

Apple (AAPL)

That being said we still going need the mega-cap stock to participate and do the bulk of the heavy lifting. Apple is likely the key because of the new iPhones, and that likely carries the supply chain with it. I’d be curious to see how the phone is selling this first weekend. I preordered my iPhone X Max and had it delivered on the 21st. I needed an upgrade from iPhone 7 Plus. The Max is the same size as the 7 and 8 Plus when holding it, but the added screen space is pretty amazing. So I am happy with my upgrade decision.

The overall trend for Apple is still higher, and technical support appears to be firm around $217. The relative strength index is also continuing to trend higher. I think Apple’s stock should continue to see the upward momentum, starting this week.

apple, aapl

Skyworks (SWKS)

The suppliers are starting to rebound as well, with Skyworks rallying pretty sharply at the end of last week., rising above a downtrend. The stock could make run towards $100.  The RSI may even be beginning to break its downtrend, setting the stage for a longer-term rise.

swks

Broadcom (AVGO)

Broadcom has been hot as well, since reporting its quarterly results, and this one has more room to rise as well, perhaps back to $275.

broadcom, avgo

AMD (AMD)

AMD will continue to be a focus stock, and I continue to think the shares will fall to $29.50, and perhaps all the way to $25.75.

amd

Nvidia (NVDA)

One stock forgotten about is Nvidia. The shares are still in a nice long-term uptrend, but over the short-term, the risk continues to be lower, perhaps to around $255.

nvda, nvidia

Alibaba (BABA)

Alibaba started showing some signs of life last week, but that quickly faded. There is a good shot for a retest of the lows around $151.

baba, alibabaJD

The same holds true for JD, probably falling to $25.50.

jd

Baidu (BIDU)

Baidu is another of one these Chinese companies that have struggled and looks like it is ready to fall back to its lows around $209.

baidu, bidu

Disney/Comcast

Finally, Comcast won the bid to buy Sky for $39 billion over Disney. I think this was a bigger deal for Comcast than for Disney, and Disney balance sheet will be better off without the extra $40 or so billion in debt. We’ll know more about what the market things tomorrow.

Good Luck this week.

-Mike

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Michael Kramer is the Founder of Mott Capital and the creator of Reading the Markets.

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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.
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