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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May 22, 2019 – Stock Mentions: Qualcomm, Target, Apple, Facebook, Bank of America, and Analog Devices
Michael Kramer and the clients of Mott Capital own Apple
- S&P 500 Futures -2.25 points
- 10-Year Yield 2.42%
- Dollar Index 98.00
- Oil $62.60
- VIX 14.80
- Shanghai -0.49%
- Japan Nikkei +0.05%
- Hong Kong HSI +0.18%
- South Korea KOSPI +0.18%
- Germany DAX +0.30%
- UK FTSE +0.44%
China is ready to go back to the negotiating table with the US.
US STOCK MARKET – May 22
S&P 500 (SPY)
This morning the S&P 500 is dipping a touch, but at this point, it hasn’t had a significant impact on the trends I was pointing out in last nights commentary. The chart of the S&P 500 ETF SPY shows that the uptrend is still in place, and we will continue to watch to see how the brewing storm plays out. I continue to think that the convergence of trends will result in the S&P 500, rising back towards 2,915.
Qualcomm is falling today after a federal court ruled that the company violated antitrust regulations. The Qualcomm is falling by about 8.5%. $70 is the significant support level that needs to hold for the stock, or it risks a decline back to $66. It makes you wonder why Apple settled so quickly, or what the real fallout from the judgment will be.
Target is rising after reporting better than expected results. I still think the stock and the company are in tight spot battling giants Amazon and Walmart. One can see in the chart below that the stock is hitting up against resistance at $78.
Apple is sinking this morning, giving back some of yesterday’s gain. We see the downtrend is still very much in control. $182 continues to be a significant level of support.
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Facebook has fallen below support at $186 and is now struggling to rise back above it. For now, the uptrend is broken, and it could be suggesting the stock declines back to $173.
Bank of America (BAC)
Bank of America is holding on to support currently at $28, but as I noted yesterday, I think the bank’s stocks could be heading lower. That means BofA could fall to around $26. Why Banks May Be Heading Lower
Analog Devices (ADI
Analog Devices reported better than expected quarterly result on the top and bottom. However, the company issued downside guidance as a result of the Huawei ban. The chart looks like there is some strong support at $95, and the stock may be oversold. Perhaps too much has been taken out of this stock already.
Have a great day!
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. May 22