Subscribe to The Free Market Chronicle and join the 2,713 subscribers getting it for FREE!

[widget id=”wordads_sidebar_widget-41″]

7 Stocks Leading The Bull Run While The Inflation Narrative Fizzles Out

The stock market continues to rally, and the S&P 500 just continues to take levels out on its march higher. Can we say at this point the narrative last week that the market was crashing because of inflation worries and rising rates was wrong? Yes. I think we can put the nail in that coffin.

[widget id=”text-16″]

[widget id=”text-19″]

Inflation

The producer price index showed a y/y rise of 2.7 percent. The funny thing, is that it is down from November’s reading of 3.06 percent, where was the nervousness then? The best part, rates on the 10-year fell by two bps, to 2.88 percent.

[widget id=”wordads_sidebar_widget-41″]

BS Narrative

I sometimes wonder who the geniuses are that dream up the BS reasons why the market is rising or falling? Is it like in the Wizard of Oz? Is there some guy or gal behind a curtain making up some narrative up? But fear not! Everyone is getting short Volatility again, as the Vix continues to fall.

[widget id=”text-12″]

Stock Market

Meanwhile, the S&P 500 continues to climb and is closed at 2,731, and is 200 points off the lows of 2,532, a gain of 8 percent off the lows. The next resistance level comes at 2,742, and then 2,767.

Netflix

Netflix has now regained nearly all of its losses and is likely to test its old highs around 288.

Alphabet (GOOGLE)

Alphabet has more work to do but has room to rise to 1,125.

Nvidia

Nvidia could continue towards $260.

Micron

Micron has a big test at $44, and needs to rise above, or else it is heading lower.

[widget id=”text-13″]

Biotech

Biotechs have bounced back materially too, and leadership has come from surprising places.

Alkermes, Alexion, and Nektar? What? Yeah. New leadership has emerged, and it is not the big boys of Biotech leading the way, but the smaller companies.

Alkermes has finally broken out, as the market has finally caught on to the prospect of the companies very promising pipeline, with major events coming in 2018.

Nektar stock soared in 2018 on the promising outlook for its immunology drug.

Alexion is nearing a potentially colossal breakout as well.

That’s it for today! Good Luck

[widget id=”text-14″]

Mott Capital’s Reading The Markets – An In-depth Global Macro Stock Market Commentary – In Video Format – See How Michael Dissects The Markets

Just $200 Per Year – Get Your Free 2 Week Trial

Free Articles Written By Mike:

Roku Options Traders Bet Stock Will Rise 15%

Why Amazon’s Record Stock Gains Are Over

Netflix Options Traders See 13% Stock Rally

3 Biotech Stocks Facing Steep Declines Ahead

Broadcom’s Bid For Qualcomm Will Fail, Traders Indicate

Tesla Analysts See Soaring Sales Amid Investor Skepticism

Cisco Traders See Stock Rebound Despite Weak Growth

4 Chipmakers Rising During the Stock Market Sell-Off

Why Alphabet’s Recent Declines Creates Opportunity

Why Netflix May Fall 10%, Setting Up Longer-Term Rise

Nvidia’s Short-Term Volatility Could Bring Long-Term Gains

Join our 2,713 Daily Subscribers And Get This Commentary In Your E-Mail! Subscribe

-OR-

[vc_tweetmeme type=”follow” follow_user=”michaelmottcm” show_followers_count=”true” large_button=”true”]

Photo Credit Via Flickr

Michael Kramer and the clients of Mott Capital own shares of GOOGL, NFLX, and ALKS

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.

Tags: #sp500 #yields #inflation #netflix #alkermes #alphabet #nvidia #micron