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.
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3 Stocks Set To Rip, and 3 Stocks Set To Dip – The Daily Rundown
mICHAEL KRAMER AND THE CLIENTS OF MOTT CAPITAL OWN SHARES OF NFLX
Things are up to heat up tomorrow in the stock market, and there will likely be no shortage of the usual post-FOMC stock market state of confusion. The only thing that matters after the meeting tomorrow will be the commentary following the announcement of the rate hike. Forecasts predict the Fed will raise effective funds rates by 25 bps.
The chart of the S&P 500 suggests the S&P 500 will attempt to rise above 2,800 tomorrow, with a pretty strong continuation pattern in place.
I feel like overall the newsflow is dull, outside of the geopolitical landscape and macroeconomic forces. Naturally, all of these situations have an impact on the broader equity market, but the transition of waiting is plain dull.
But if the market is to rise, then the questions is which stocks will lead? Well, we can start at the top, with stocks like Amazon, which continues to look strong, and appears to be poised to rise.
Netflix shares have also resumed there rise higher as well.
Boeing shares appear to be getting ready to break out as well. In fact, I notice some call buying on June 6, of the $400 strike price calls for expiration on September 21. The options trade at roughly $8 per contract and would suggest the stock rise to about $408, by expiration, an increase of approximately 10 percent.
I had commented that Intel’s stock looked ready to fall, and indeed it has. The chart below shows the stock falling below the lower end of the rising wedge pattern. I do not entirely know how far it goes down, to be honest. I can see stopping at the uptrend around $53, or dropping all the way to $50. I guess shall find out soon.
There is like an unpenetrable wall of resistance at $72.15 in Gilead as if I could not have drawn resistance any better. You think a seller lives there?
Bank of America
It looks like Bank of America is coming to a crossroad, does it break higher or lower? Good questions. If I had to guess, I’d say lower. In the member area today, I went through the scenario why I think bank stocks may be in trouble. (See: Banks In Danger Zone, PLUS Amazon & Tesla More)
Keep on an eye on Copper here; it is bumping up some long-term resistance, and a breakout would be good for stocks like Freeport. But it is an inflation gauge, so we need to watch it.
I think Oil is setting up for its next leg lower, could be tomorrow! Watch out. $61 here we come!
I’m off to bed, it isn’t fun being sick, but the market stops for no one.
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.