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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DECEMBER 29, 2019
STOCKS: TSLA, NFLX, AMZN, CAT, SBUX, AMD, NVDA
MICHAEL KRAMER AND THE CLIENTS OF MOTT CAPITAL OWN NFLX AND TSLA
Reading The Market Premium Content For the Week Ahead:
S&P 500 (SPY)
Stocks will try to advance once again, in the New Year shortened trading week. The S&P 500 closed around 3,240 on Friday, and it leaves the next level of resistance around 3,255. The index finds itself in overbought territory with an RSI at 78.4, which is too high. The index is likely to continue to climb over the next several weeks, but it needs to fall by 1-2% and soon to get the RSI below 70 again. Let’s hope that we can get a pullback this week. Preferably, back to around 3,200, which would be support.
Amazon had a good week rising to resistance around $1,890. The stock failed at that resistance level and is likely to retest support this week around $1825.
Tesla has had no leaked emails about production or delivery rates, which is surprising. I can’t remember the last time a quarter was complete without a leak. If the stock pulls back, this is likely to be the week. But with no leaked emails, the only question is what investors’ expectations are for deliveries. Should the stock fall,$420 is the first support level, followed by $406 and then $390. We find out what those delivery numbers are no later than January 3.
AMD looks like it may be double topping, and drop below $45.50 gets the stock heading back to 42.95.
Netflix is falling, and support doesn’t come until $315.
Caterpillar looks like it may be forming an ascending triangle, and it may be ready to rise to around $157.50.
All signs are pointing to Starbucks rising to around $91.50
Enjoy the rest of your 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 results.