Home ยป Amazon and Apple May Rise; Nvidia, Alibaba, JD, Banks May Fall

Amazon and Apple May Rise; Nvidia, Alibaba, JD, Banks May Fall

Amazon and Apple May Rise; Nvidia, Alibaba, JD, Banks May Fall

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Amazon and Apple May Rise; Nvidia, Alibaba, JD, Banks May Fall

MICHAEL KRAMER AND THE CLIENTS OF MOTT CAPITAL OWN SHARES OF APPLE, NETFLIX, VISA, AND MASTERCARD

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S&P 500 (SP500, SPX)

The stock market fell slightlyย on Monday with the S&P 500 dropping by about 60 basis points. The index has had some difficulty rising above the 2,772 level on several occasionsย over the past two days. But if we are to looking for a silver lining,ย  it is that we did not retest Friday or Thursday’s lows and that the S&P 500 is slowly trending higher.

spx, sp500, S&P 500

Yields (TLT)

Yields on the US 10-year are stubbornly staying elevated and hovering around its uptrend. We must continue to watch this.

10-year rates

Dollar (DXY)

The dollar index continues to decline and is not confirming the move in higher in yields. It would suggest that yields are likely to fall.

dxy dollar index

Gold (GLD)

Gold is sometimeย aย hedgeย against risk. It has moved slightly higher in recent days, but some of that may also be relatedย to the weaker dollar. It may continue to rise a bit further to around $1,270.

gold, gld

Amazon (AMZN)

If turn to leadership in the stock market, we can start with Amazon, because it shares were hit early in the day but recovered nicely.ย  The excellent news is that Amazon has now tested support two times at the $1,740 level, on Friday and today. Most important is that the support level held firm. As long as Amazon can keep its price above that support level, then the bull case continues to grow stronger, and an increase back to $1,900 could be in the cards.

amazon, amzn

Apple (AAPL)

Apple also fell hard today by more than 2%, but again the good news here is that stock continues to hold support at $217 a big positive. It would seem there is a big buyer there. I wonder who it could be :). I do not know. But could it be Berkshire? I have no clue, but the stock has been firm at that level. Since the end of August, it has only momentarily dipped below that support.

aapl, apple

Mastercard (MA)

Mastercard got fell and had some difficulty getting above resistance at $203.ย  Staying above the previous lows is critical.

mastercard

Visa (V)

Visa’s chart looksย like that of Mastercard. Looking at this chart more closely would suggest that the stock could fall back to around $136. But again, that is still higher than the previous lows.

visa, v

Netflix (NFLX)

Netflix is due to report results tomorrow, and the stock is also holding firm at its support around $333. What happens with the results? I do not know.ย Myย guesstimate based on my gut and analysis of Google Trends suggests that the company beats itsย guidance of 5 million new subscribers easily.ย  I looked the option again, and I really do not see any sign of a big bet either way.ย  Additionally, the chart doesn’t help much to predict fundamental results.

Netflix, nflx

Nvidia (NVDA)

Nvidia is fighting to hold its lows of lastย Thursday around $235. If it can’t those lows then it likely falls to around $217.

nvda, nvidiai

The way that RSI is trending, I think $217 is better than a 70% chance.

nvda, nvidia

Banks (BKX, XLF)

I was going to review the banks. But what am I suppose to say? They are going lower. I have been saying it for weeks. I’m sorry, but this hasn’t changed. They are still going lower.

bkx, banks

JD

JD.com is nearing its downtrend. The RSI is just grinding lower and would suggest that the stock fall to around $20.

jd

Alibaba (BABA)

Same for Alibaba.

baba, alibaba

-Mike

Photo Credit Via Flickrย 

Mott Capital Management, LLCย 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.ย Upon request, the advisor will provide a list of all recommendations made during the past twelve months. Past performance is not indicative of future.

spx, sp500, nflx, amzn, aapl, yields, baba, jd, ma, v, bkx,