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Michael Kramer and the clients of Mott Capital Own NFLX, AAPL
The stock market is looking to pick up where it left off last week after a strong showing following the better than expected job report and a more clear and concise FOMC Chairman Powell noted patience on raising future rates. But attention this week will turn to trade with the US and China set to kick off yet another round of negotiations.
On Monday we get ISM Non-MFG Index consensus is for 58.4
Wednesday will be the FOMC Minutes at 2:00 PM
Thursday at 12:45 PM FOMC Chair Powell speaks at the economic club of Washington DC
Friday is CPI with consensus for y/y change of 1.9%, with the core at 2.2%
VIX
It makes for a busy week all around, and that likely means volatility is back, and the wild stock market moves will continue. But a drop in the VIX below 20 likely sends it back to 15, and that means higher equity prices will follow. Remember volatility doesn’t just mean falling stock prices, volatility can be rapidly rising stock prices as well.
The term structure shows that volatility is likely to continue settling down in the future.
S&P 500 (SPX, SP500)
As noted yesterday should the S&P 500 rise above resistance at 2,535 likely sends the index on to around 2,630. That will be the big test, and I expect an advance above that level will be much harder than this initial leg higher we are seeing. There is far more congestion on the chart between 2,630 and 2,800. Also, there were considerably higher amounts of volume trading in that region.
Microsoft (MSFT)
With Apple’s stock now damaged the market will need to lean more on Microsoft which is now the most valuable company. $103 has proven to be a tough level of resistance and Microsoft will need to clear that hurdle to see its stock rise further. It may not be an easy task for the stock. Should it managed to rise above $103 the next level to watch for is $110.
Amazon (AMZN)
Amazon cleared a downtrend, which is a big positive, and the next level to watch for $1620.
Facebook (FB)
If Facebook can clear $142, then it sets up a move to $148. At that point, we could say the downtrend is broken. But we have seen this story before, so any rise is suspect until proven otherwise for now.
Netflix (NFLX)
Netflix will report result on January 17, and everyone will be focused on subscriber adds.
The technical chart also suggests a rise above $300 sends the stock back to $330.
Nflx a rise above $300 takes it to $330 by Scorpio244 on TradingView.com
Roku (ROKU)
Roku is nearing a breakout and should it rise above $34.50 the stock could move higher to $43.
roku a rise above 34.50 send to $43 by Scorpio244 on TradingView.com
Verastem (VSTM)
I’m not familiar with Verastem, but someone asked so I looked. The chart is very impressive. The chart hit firm support around $3 and is now nearing a break out which could send it back to $5.
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Blackberry (BB)
Blackberry is holding very critical support and if it fails here, it is on its way to $5.80.
Micron (MU)
Micron continues to look better and better and I can see it rising towards $37. Remember the outlook for the second half of 2019 is stronger than the first half, and that means the market is already starting to look forward.
Nvidia (NVDA)
Nvidia is butting up against resistance at $140 and rise above that resistance sends it to $160.
Have a great week!
Mike
amazon, microsoft, stocks to watch, january 7
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This report contains independent commentary to be used for informational and educational purposes only. Michael Kramer is a member and investment adviser representative with Mott Capital Management. Mr. Kramer is not affiliated with this company and does not serve on the board of any related company that issued this stock. All opinions and analyses presented by Michael Kramer in this analysis or market report are solely Michael Kramer’s views. Readers should not treat any opinion, viewpoint, or prediction expressed by Michael Kramer as a specific solicitation or recommendation to buy or sell a particular security or follow a particular strategy. Michael Kramer’s analyses are based upon information and independent research that he considers reliable, but neither Michael Kramer nor Mott Capital Management guarantees its completeness or accuracy, and it should not be relied upon as such. Michael Kramer is not under any obligation to update or correct any information presented in his analyses. Mr. Kramer’s statements, guidance, and opinions are subject to change without notice. Past performance is not indicative of future results. Neither Michael Kramer nor Mott Capital Management guarantees any specific outcome or profit. You should be aware of the real risk of loss in following any strategy or investment commentary presented in this analysis. Strategies or investments discussed may fluctuate in price or value. Investments or strategies mentioned in this analysis may not be suitable for you. This material does not consider your particular investment objectives, financial situation, or needs and is not intended as a recommendation appropriate for you. You must make an independent decision regarding investments or strategies in this analysis. Upon request, the advisor will provide a list of all recommendations made during the past twelve months. Before acting on information in this analysis, you should consider whether it is suitable for your circumstances and strongly consider seeking advice from your own financial or investment adviser to determine the suitability of any investment.
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