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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MICHAEL KRAMER AND THE CLIENTS OF MOTT CAPITAL OWN AAPL, NFLX, SWKS, TSLA
Good Morning Today is December 3
- S&P 500 futures are pointing to a higher opening of 42 points as of 7:00 AM
- The US 10-year rate is at 3.03%
- Dollar Index is at 97.12
- WTI Crude Oil is $53.00 +$2.50
- Critical events for today: US/China trade war on pause for 90 days.
Recap of International Trading:
Hong Kong Hang Seng Index finished the day up about 2.55%.
China Shanghai Comp. finished the day up 2.6%
UK FTSE up 2.2%.
DAX is up 2.5%
Hong Kong is now on its way higher, and likely to approach 28,230
Shanghai Comp. is nearing a technical break out, which may send the index higher to roughly 2,700.
US Levels To Watch
The key today, can all the gains hold? Gaps higher at the open are known to fade throughout the day or the days that follow. So keep that in mind. It is not to say stock won’t continue to rise in the weeks to come; it just means that nothing goes up a straight line, and I wouldn’t be surprised to see some of this rally fizzle by days end. With that here are the levels to watch. Good Luck!
S&P 500 Futures
S&P 500 futures are nearing technical resistance around 2,820, and there is a very well defined “W” double bottom now in place, and should the future rise above that resistance level at 2,820 it may result in an increase back to 2,900.
Apple is up $6 to roughly $185 in the premarket. The next level of resistance comes around $186, and should the stock rise above $186 it could well be on its way to $195, and technical support is around $180. As mentioned yesterday the truce is likely a good indication no iPhone tariffs and no boycott in China on iPhone.
Netflix is also rising today, although there is no direct trade news here since Netflix has no service in China. But this just an indication of sentiment in the market. A rise above $300 likely sends the stock on to $330.
Tesla is benefiting today as China cuts Auto tariffs. It is rising above resistance at $360, and that could signal a rise, yes, back to the stocks all-time highs.
Amazon is also benefitting like Netflix, trading above resistance at $1750.
Alibaba is also breaking out rising above $166, a big winner. But more important is if the RMB begins to weaken versus the dollar, it could be a significant tailwind for EPS and revenue growth.
Micron and most chip stocks will see a significant benefit today. Micron is rising above resistance at $40. Next level to watch is for $42.
Skyworks could be a winner too and is a big Apple supplier. $81 is the next level of resistance.
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
SP500, Netflix, amazon, tesla, micron, skyworks, alibaba