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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Michael Kramer and the clients of Mott Capital own Netflix
Michael Kramer owns SPY Calls
March 18, 2019
- S&P 500 Futures 3.50 Points
- US 10-Year 2.59%
- Oil $58.22
- VIX 13.1
- Dollar Index 96.45
- China Shanghai +2.47%
- Hong Kong HSI +1.37%
- Japan Nikkei +0.62%
- South Korea KOSPI +0.16%
- Singapore STI +0.40%
- UK FTSE +0.63%
- German DAX -0.20%
Stocks are rising sharply around the globe with China leading the way higher. Perhaps more important is that the UK FTSE is nearing a very significant technical break out. The index is trading right at technical resistance of 7,283. Should the index cross above this level of resistance it could go on to increase an additional 3% to 7,521.
S&P 500 (SPY)
The S&P 500 will try to continue to rally today after a big session on Friday which saw the index reach fresh 2019 highs. The next level of resistance comes around 2% higher at 2,872. Meanwhile, should the index pullback the 2,800 region will offer a tremendous amount of support.
The Russell 2000 should be watched closely. The index failed two times at 1,562. Support for the index comes around 1,538. But we can see from the chart the longer-term setup shows a giant wedge pattern forming which could signal a much more significant increase is coming, perhaps sending the index to 1,710.
Housing Sector (HGX)
The housing sector is also nearing a massive breakout and could climb to 295 in the short-term.
Boeing is continuing to decline today down another 3%, on news that prosecutors and the transportation department are investigating how the FAA approved the 737 MAX. The stock is once again falling below crucial support again at $371. It once again increases the risk that the stock continues to decline to around $326.
Nike’s price target was raised at Telsey to $95 from $92 ahead of its quarterly results later this week.
Facebook continues its decline, nothing has changed here, and I am still waiting for that plunge to $149.
Alibaba is lifting today along with many of the other names in China. The path for BABA continues to look higher, and $201 does seem possible.
IQiyi is rising this morning too, and I think the path appears higher towards $30.
JD is also rising in the pre-market and continues to point higher towards $30.
Netflix should continue to be watched. The stock may have broken out on Friday, and if that is the case, then the stock could be on its way higher towards $380.
Amazon also broke its downtrend on Friday, and that could clear a path to $1,770.
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. March 18