February 22, 2019

US Markets

• S&P 500 Futures: +10 Points
• US 10-Year 2.68%
• Oil: $57.41 +$0.48
• Dollar Index: 96.63

International Markets:

• Japan Nikkei: -0.18%
• China Shanghai: +1.91%
• Hong Kong Hang Seng: +0.65%
• Singapore STI: -0.24%
• South Korea KOSPI: +0.08%
• German DAX: +0.52%
• UK FTSE: +0.53%

Global Growth Proxies:

• Copper: $2.945 – Copper continues to see a big rally!
• Silver: $15.82
• Platinum: $834.30

Key Events:

US/China trade talks wrap-up today with President Trump meeting Vice Premier Lui He at 2:30 PM

International Trading Session

International markets continue to perform strongly, but many of the major indexes in Asia are approaching important areas of resistance, and we will need to do some work to decide what happens next. That will be something I will look to work on with an update over the weekend. 

U.S. Trading Sessions on February 22

US equity futures are pointing to a higher opening on February 22 of about 10 points on the S&P 500. Resistance on the S&P 500 is around 2,785, and I still do believe that we a bit further to fall in the major US indexes. Nothing has changed my view at this point.

Intel (INTC)

Intel is jumping above $52.50  triggering a break out this morning after Morgan Stanley upgraded the stock to Overweight from Equal-Weight and a $64 price target. I just wrote a free article yesterday and noted that the stock might rise back to previous highs from June last year. Here’s Why Intel’s Bull Run Isn’t Over

Citigroup (C)

Citigroup was upgraded to a buy from hold at Jefferies with a $73 price target.  The stock has strong resistance at the $65 to $66 range. If it can manage to get above that region, then it has room to rise on to $70.

Lam Research (LRCX)

Lam Research was downgraded to equal weight from overweight at Morgan Stanley. The stock has hit some resistance recently at $183, and it is likely to head back to $170.

Roku

Roku is jumping after guiding to a better than expected full year outlook. For now, resistance is at $56, and if the stock can manage to break above that level than it has room to run to $59.50.  I had looked for the stock to fall back to $48. Not sure that will happen anymore, we shall see.

JD

JD.com seems to have further to rise in the coming days and I still see it moving towards $26.

Alibaba (BABA)

Alibaba also continues to look sharp with the potential to rise towards $180.

Square (SQ)

Square is consolidating nicely and I still think one can rise towards $83.

Broadcom (AVGO)

Finally, Broadcom was downgraded to market perform at Cowen with a $280 target. It is too early to call this a double top, but a decline to $273 doesn’t seem unreasonable.

Enjoy!

Mike

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. February 22