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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April 15, 2019 – Happy Tax Day
Michael Kramer and the clients of Mott Capital own Disney and Netflix
Michael Kramer owns IWM Calls
- S&P 500 Future +2 points
- 10-Year Yield 2.56%
- Dollar Index 96.85
- Vix 12.36
- Oil $63.34
- China Shanghai Composite -0.34%
- Hong Kong HSI -0.33%
- South Korea KOSPI +0.42%
- Japan Nikkei +1.37%
- German DAX +0.23%
- UK FTSE +0.07%
Global Growth Proxies
- Copper $2.92
- Platinum $890.50
The South Korea KOSPI continues to rise further away from its downtrend. The recent rise would indicate the index has now broken out. This is one of the key export economies in Asia and an improving stock market points to improving sentiment regarding the future of the South Korean economy.
S&P 500 (SPY)
S&P 500 will try to break above resistance today at 2,915 putting it on a path to challenge 2,940. Should the index pullback, which I don’t think it will, support rest around 2,890. There is not much more to say at this point.
The Russell will attempt to break out should it rise above 1,593. There is a minor level of resistance around 1,638. I do not think resistance at 1,593 will be much of a problem though, and the index should eventually return to 1,710.
Goldman reported a beat on earnings and a miss on revenue. The stock isn’t doing much immediately after the results dropping to around $207. The chart is bullish and indicates the stock is likely to rise towards $216. Support for Goldman appears solid at $200.
Wells Fargo (WFC)
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One bank that continues to struggle is Wells Fargo. The stock received four downgrades this morning following Friday’s earnings. The chart suggests the stock may fall to around $43.
Citigroup reported earnings of $1.87 per share ahead of expectations for $1.79. Meanwhile, revenue came in at $18.6 billion versus estimates of $18.56 billion. The Shares are unchanged. The trend for the stock is higher, and I suspect we will continue to see the stock rise towards resistance at $70.25.
Disney’s price target was lifted at Imperial to $139 from $129. It isn’t clear to me yet if the stock will attempt to refill the gap to $116, however it seems possible for a pullback to $121.
Netflix continues to be under pressure today after the Disney streaming news on Thursday. I think there may be a bit of swap for some investors that want exposure to streaming media growth, but at a valuation that is palatable. For that reason, Netflix may continue to feel some downward pressure. But with earnings tomorrow night, it may not last for long.
Roku may also continue to feel that same pressure today, and the stock may continue to fall to around $52.
Good Luck today.
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.
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