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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For the Week of July 1 – Stock Mentions SPY, AAPL, NFLX, NVDA, ROKU, JD, BABA, FB
Michael Kramer and the clients of Mott Capital own AAPL and NFLX
Week of July 1
It will be a busy week of July 1 with tons of economic data on tap. But the big news on Monday will come following the China/US summit at the G20. I am disappointed by the outcome to some degree. After nearly two months of leading up to the event and all the market volatility, I felt that the meeting was too short and too brief. There was nothing completed during that meeting that couldn’t have been conducted on a phone call seven weeks earlier. It was a lot of theater.
Am I happy that there is a truce and at least the overhang is removed? Of course. Would I have liked to see something more substantial? Yes. Do I think the market got enough to rise following this event? Yes, that it shall. (Premium Content: The Week Ahead For July 1)
S&P 500 (SPY)
As I left off on Friday, the S&P 500 has a bullish technical pattern which has formed known as a bullish triangle. It would suggest that the index is likely heading higher in the coming days. The events from this weekend should be enough to push prices higher.
The one thing to be mindful of is a gap opening on Monday. Just remember how the market tends to fill those gap.
Apple is likely to be a major winner from this weekend. Investors had a great deal of concern regarding the potential for iPhone tariffs. My view is that the stock pushes towards $209.
Netflix is one stock that may also continue to move higher this week towards $380.
Nvidia should continue to rise and head towards $178
Roku is likely to continue to trend lower, as indicated by the RSI. The next stop is probably around $80 on its way to $68. Be careful; the stock is likely to try and test resistance at $94 at some point.
Alibaba should be a big beneficiary this week, with the potential to rise towards $179.
An increase above $31.50 on JD sends the stock towards $34.80.
Facebook has performed reasonably well and is forming a rising triangle. A break above $194.50 could send the stock towards $203. Not what I had thought would happen, but you can’t fight the trend.
Have a good week!
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.