Subscribe to receive this FREE daily commentary directly in your email
Michael Kramer and the Clients of Mott Capital own Netflix, Acadia, Tesla
February 27, 2019
U.S. Trading
- S&P 500 -5 points as 8 AM
- 10-Year 2.63%
- Oil $56.60 +1.96%
- VIX 15.5
- Dollar Index 95.98
International Trading
- Japan Nikkei +0.50%
- Shanghai +0.42
- Hang Seng -0.05%
- KOSPI +0.37%
- ASX200 +0.36%
- DAX -0.38%
- FTSE -0.67%
Late Start
Sorry, today will be brief. I overslept. 😳 I was up late last night working on a last-minute project request I got late yesterday. Nothing like burning the midnight oil on a Tuesday night. At 41, I find the recovery time the next day isn’t what it use to be.
S&P 500 (SPY)
Anyway, the S&P 500 is flat this morning February 27, and from the few headlines I have caught today, I can’t see why there should not be a continuation of what we have seen these past few weeks. The one thing that continues to bother me is that gap down at 2,750. In the worst case scenario, it should serve as strong support, keep an open mind that it is looming out there. That is all.
Technology ETF (XLK)
The technology ETF broke out and for today support will be at the $70.40 level.
Acadia (ACAD)
Acadia reported results that were mostly in line with expectations. Guidance for the year was a bit light at the mid-point. But nothing that I am concerned over. I think they are likely taking a much more conservative approach this year given the scale back of last years revenue guidance. More important will be the trail results scheduled for calendar 2019 with schizophrenia and dementia-related psychosis. I do believe that the positive MDD trail results from the fall suggest that Acadia will have success in the schizophrenia trials. Also, I like that the company appears to have scrapped its SPCD design for the next round of Phase 3 trials in MDD. I think given the results of data in Clarity it points to a good chance of a positive outcome for MDD. But there is a while to wait.
The stock still has a significant resistance level at $24, with a break out sending it to around $27. No change there. I do think the result, and the promise of these trials eventually get the stock moving. There is a reason the Bakers own 30%+ of the company.
Tesla (TSLA)
Tesla was resilient yesterday despite another round of negative headlines about Elon Musk. It either means one of two things: The Musk premium has been removed from the stock, or the market doesn’t think the latest round of news matters. In a tweet, today Musk noted some Tesla news on Thursday at 5 pm. What that news is I have no idea? New model, new battery? I don’t know.
The stock has inadvertently moved outside of one of its many downtrends. Does that mean a move higher towards $320? Maybe. Let’s see what happens. The path to $333 is much harder now.
Netflix (NFLX)
Netflix could be on the move today, as the stock continues to work its way through the triangle. A big move up or down is coming; I noted yesterday why I think it could rise.
Unlock Deeper Insights with Exclusive Member-Only Video Content on The Market Chronicles YouTube Channel – Just $34.99/Month
[youtube-feed feed=7]JD and Qualcomm
I wrote up an article yesterday on why I thought JD.com could be heading towards $29. Why JD.Com’s Stock May Pop Following Results. I also noted how I saw more bullish activity in Qualcomm in a premium article. More Bullish Activity In Qualcomm
Blackberry (BB)
Careful with Blackberry here. The stock failed at resistance at the uptrend, and the stock could be creating a double top. I think at this point the risk is still to the downside. The run-up we have seen in the recent weeks I think may finally be over.
Have a great day and more later.
-Mike
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.  February 27
Subscribe to receive this FREE daily commentary directly in your email
This report contains independent commentary to be used for informational and educational purposes only. Michael Kramer is a member and investment adviser representative with Mott Capital Management. Mr. Kramer is not affiliated with this company and does not serve on the board of any related company that issued this stock. All opinions and analyses presented by Michael Kramer in this analysis or market report are solely Michael Kramer’s views. Readers should not treat any opinion, viewpoint, or prediction expressed by Michael Kramer as a specific solicitation or recommendation to buy or sell a particular security or follow a particular strategy. Michael Kramer’s analyses are based upon information and independent research that he considers reliable, but neither Michael Kramer nor Mott Capital Management guarantees its completeness or accuracy, and it should not be relied upon as such. Michael Kramer is not under any obligation to update or correct any information presented in his analyses. Mr. Kramer’s statements, guidance, and opinions are subject to change without notice. Past performance is not indicative of future results. Neither Michael Kramer nor Mott Capital Management guarantees any specific outcome or profit. You should be aware of the real risk of loss in following any strategy or investment commentary presented in this analysis. Strategies or investments discussed may fluctuate in price or value. Investments or strategies mentioned in this analysis may not be suitable for you. This material does not consider your particular investment objectives, financial situation, or needs and is not intended as a recommendation appropriate for you. You must make an independent decision regarding investments or strategies in this analysis. Upon request, the advisor will provide a list of all recommendations made during the past twelve months. Before acting on information in this analysis, you should consider whether it is suitable for your circumstances and strongly consider seeking advice from your own financial or investment adviser to determine the suitability of any investment.