February 19, 2019
Michael Kramer and Clients of Mott Capital own Apple
- S&P 500 Future -6
- 10-Year Yield: 2.66%
- Oil: $56.13 +0.94%
- VIX: 16.01
- Dollar Index: 97.01 +0.11%
- Japan Nikkei: +0.10%
- China Shanghai: +0.05%
- Hong Kong Hang Seng: -0.42%
- South Korea Kospi: -0.24%
- Singapore STI: -0.19%
- German DAX: -0.18%
- UK FTSE: -0.53%
- German 10-Yr Bund: 0.095%
- Japan 10-Year JGB: -0.04%
Global Growth Proxies
- Copper: $2.8275 +1.04%
- Silver: $15.78 +0.27%
- Platinum: $812.30 +0.67%
- Trade talks between the US and China resume on February 19 with reports that Vice-Premier handed greater power to end tensions.
- Trade tension Possible memorandum of understanding
- Apple to launch new products in 2019?
- Is the ECB ready to do whatever it takes?
S&P 500 (SPY)
Stocks are pointing to a slightly lower opening on February 19, but nothing severe. Resistance for the S&P 500 comes in a zone of 2,795 to 2,800.
Nomura downgraded Lululemon to hold from buy and raised its price target to $157. It seems clear at this point the trend in Lulu has shifted, with an RSI that is now trending lower, and a stock that is nearing a potential breakdown should it fall below $145.
McDonald’s was upgraded at Stephens to overweight from equal weight, while the price target was raised to $200 from $180. Unfortunately, I have never understood the love affair with this stock. It is a company that has shrinking revenue, while it grows its EPS from cost reduction and buy-backs.
Anyway, if you have read me long enough, you know that I am bearish on McDonald’s. However, I have been wrong for sometime, as the stock never breaks below the $155 level.
There appears to be a double forming in the stock, and a break below $170 confirms that double top. The RSI continues to point to a stock that is heading lower over time, not higher. Sorry, Stephens.
Walmart’s US comp sales +4.2% vs. estimates of 3.2% and beats on both the top and bottom lines, while reaffirming its fiscal year 2020 outlook. The metric the market loves –-US e-commerce growth of 43%. The stock is rising pre-market by 4% and is rising above resistance at $103. The stock could be nearing a big break out sending the stock on its way back to all-time highs around $110.
Facebook is trading slightly lower and continues to appear as if it is heading lower towards $157.
Nvidia should be on watch after investors have had three days to digest those horribly sugar-coated results from last week. A drop below $150 sends the stock back to around $139.
Freeport is nearing a huge break out which could send the stock higher on towards $13.80.
JD is laying off 10% of its executive workforce. The uptrend in the stock is still firm, and it appears the stock is still on its way to $26.
Blackberry is nearing a big breakout at $8.70, which could send it on to $9.
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