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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7 Must Watch Stocks For The Week Of October 8
MICHAEL KRAMER AND THE CLIENTS OF MOTT CAPITAL OWN SHARE OF CELG AND ALKS
It was undoubtedly a busy week, and the market was sending a lot of mixed messages in two critical risk-on sectors. The chips stock were one group that caught my interest during Friday’s trading. The group appeared at moments as if it was heading towards doom with trends and support level failing left and right. But by days end there seemed to be some substantial improvements. (See more on Friday’s sell-off: 8 Signs The Worse May Be Over For Stocks and Yields Are Going Lower.)
SMH ETF (SMH)
The SMH Semiconductor ETF is one group that was noticeable with the ETF falling right to support around $101 which also happens to correspond with an uptrend which has been in place since September of 2017.
Intel is one of the most significant components in the sector and is surely a leader of the group. We have been following Intel closely lately, and the chart has improved tremendously since the stock broke out. For now, the uptrend continues to stay in place, and I’m still feeling somewhat bullish on the stock. The level to watch is $46.25 and should the stock fall below that price it likely has further to fall. (You can read more on Intel here: Freaky Friday For Tesla, Intel, AMD, Nvidia, and the Bank Stocks.)
Nvidia is next on the list of chips to watch. The long-term outlook for Nvidia continues to look strong with a solid uptrend in place. For now the stock looks like it has some room to fall further perhaps to range of about $255 to $260.
If we turn to some other risk-on sectors of the market such as biotech we some find some similar signals. The IBB managed to find support around its uptrend and a support level around $114.
Celgene is one of the big stocks in the group, and it found support around too around $86.50. This price has been a critical level of support for some time. As long as the stock continues to stay above this level of support it is a good sign longer-term for the stock and the sector.
Amgen is another stock that found support where it needed to on its uptrend at $200.
On a separate note, one stock that has acted quite well is Alkermes. November 1 is the big day for them when their drug ‘5461 for depression goes in front of the FDA Adcom panel for a vote on its future. The market has given the drug little to no chance of getting an approval so a positive vote would be a huge deal for the stock. (Read More: What Apple and Biotech Alkermes Have In Common.)
Some other areas of interest are the banks, and despite a steeper yield curve the banks are getting sucked lowered as well. It may very well be a sign that equity investors do not believe that the yield curve will continue to steepen. To be honest this one group we do not want to do well and continue to drift lower. For the very reason, it is a read on investors sentiment on the future of yields. (See: Even Earnings Can’t Save The Banks – The Daily Recap.)
The BKX has failed to break out on two attempts last week and that surely can’t be a good sign for the bank stocks.
Morgan Stanley (MS)
Morgan Stanley is one of those banks that looks to be in bad shape and continues to grind lower.
Goldman Sachs (GS)
Goldman Sachs is another such bank that continues to look to be in bad shape.
That’s it for a Saturday
More on Sunday
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.
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