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September 19 – Stock mentions: SPY, MSFT, ROKU, ACAD, MU, TSLA
Michael Kramer and the clients of Mott Capital own TSLA, MSFT, ACAD
US Markets
- S&P 500 Futures +5.50 points
- 10-Year 1.77%
- VIX 14.05
- Dollar Index 98.29
- Oil $59.40
International Markets
- Japan Nikkei +0.28%
- South Korea KOSPI +0.46%
- Shanghai +0.46%
- HSI -1.07%
- UK FTSE +0.57%
- DAX +0.26%
MACRO
Repo Operations
The Fed conducted a repo operation for the third day in a row, and the good news is that the rate was at 1.845%, so within the range of the Fed’s new target rate of 1.75% to 2.00%. Is all back to normal? Not sure yet, we will have to wait and see.
More Rate Cuts?
At the moment the market is now looking for one more rate cut in 2019, with a 48% chance of rates in a range of 1.5 to 1.75% in December. Not an impressive number, but dovish none the less.
South Korea (KOSPI)
The KOSPI has reached resistance around 2,100; now we need to sit back and watch and see what happens next.
S&P 500 (SPY)
The setup in the S&P 500 futures continues to be bullish. The index has held up reasonably well recently around the 3,000 level. I think that is a positive sign.
STOCKS
Microsoft (MSFT)
Microsoft has been range-bound for some time, but it needs to get over $141 to see a breakout.
Roku (ROKU)
Roku is testing support today at $122; this will be significant to watch, with a break sending the stock sharply low and to a gap fill at $100.
Acadia (ACAD)
It looks like the Bakers only took down about 25% of the Acadia deal or 1.562 million of the 6.25 million offered. The stock performed reasonably well after the place closing just slightly lower and rising about $2 above the deal price.
Tesla (TSLA)
Tesla is approaching that significant uptrend we have been following. Now the next level to watch is for $253.
Micron (MU)
Don’t forget Micron will soon report results. The stock has held up reasonably well around support at $48.75, and I still think it can head towards $54.
Have a great day
-Mike
Mott Capital Management, LLCย 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.