amazon netflix microsoft s&P 500 stocks

Amazon, Microsoft, and Netflix Showing Sign Of Fatigue

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.

Otherwise, enjoy the column!

Subscribe to the Monster Stock Market Commentary to get the Weekly Monster Market Commentary and join the 3,180 subscribers getting it for FREE!

This Daily Commentary Is Availabe For $99 Per Year, Sign Up!

Amazon, Microsoft, and Netflix Showing Sign Of Fatigue

To follow up on the weekend commentary, Amazon, Microsoft, and Netflix are continuing to show signs of weakness. In fact, today’s trading action, despite mild gains, actually strengthen that argument as each stock failed at crucial resistance levels. Plus I take a mild victory on NXP Semiconductor

[widget id=”text-16″]

[widget id=”text-19″]

S&P 500

The stock market traded slightly lower today, with the S&P 500 down by about 60 bps, to 2,716, bring the S&P 500 down to our first support level around 2,713.

S&P 500

The chart above shows how the S&P 500 bounced right off, 2613, and managed to close right above it. Over the weekend, I wrote that the S&P 500 might fall to 2,691 to and I still believe that is the case, over the next couple days. Again, let me emphasize I am not saying or calling for the start of some massive sell-off, this, in my opinion, is just merely a minor pullback, in what has otherwise been a sharp and robust rebound. But if support fails and the index falls below 2,691 the story changes.



Amazon finished the day higher by about 1.36 percent, but again Amazon continues to look extremely toppy here, and once again, the stock topped out along resistance and has yet to break above its previous highs. To make matters worse for Amazon, we can see the stock had a relatively sharp sell-off of about 1 percent over the final hour and half of the day.

Subscribe to the MCM Stock Market Commentary to get it weekly and join the 3,180 subscribers getting it for FREE!


Additionally, if the stock fails to break to new highs, it could be a sign of a double-top forming on the daily chart. For now, the warning signs for Amazon, are a failure to rise to a new all-time high and a drop below $1,425. Should Amazon’s price fall below 1,425 shares likely fall sharply lower, perhaps to $1,250.

Notice volume was consistently rising for Amazon starting at the end of 2017, and it has been steadily declining even as the stock has rebound, again a bearish sign in my book.

Watch for these levels and these areas of interest. To be clear, I am NOT saying Amazon is about to enter some giant bear market, or this the all-time high’s never to be seen again! NO! I am merely suggesting that the stock may have a pullback over the next few weeks to months, and now is likely to err on the side of caution.


Microsoft also rallied 90 bps today, but look at that chart below, again failing right at resistance. You saw the chart from over the weekend. I don’t make these things up!


If shares can clear $93.50, it is a sign that I am wrong, and the stock could continue to rally. That trendline is of critical importance to watch.

[widget id=”wordads_sidebar_widget-41″]


Netflix is the same scenario, also nearing a technical breakout/breakdown. Again, Netflix like Amazon must make a new all-time for any rally to continue to over the short-term. If shares are unable to rise above $287.50, it would suggest that the stock will fall and likely test support around $250.



After a year of writing about the topic, Qualcomm has finally up its bid for NXPI to $127.50 or $44 billion. I’m going to give myself a well-deserved pat on the back because it was in June, I said that Qualcomm would need to raise its offer $45 billion. Pretty darn close.

The most entertaining thing about the new offer? The tender closes on March 5, at 11:59 PM. Remember Broadcom is nominating people to run for Qualcomm’s board of director at the shareholder meeting. Broadcom made it quite clear they opposed Qualcomm upping its bid for NXPI. So what does Qualcomm do to fend off Broadcom, what they had too, up the bid. The best part, guess when that shareholder meeting is? You guessed it, March 6.

Talk about a kick in the teeth!

That is it! Good Luck

[widget id=”text-12″]

Mott Capital’s Reading The Markets – An In-depth Global Macro Stock Market Commentary In Video Format – See How Michael Dissects The Markets

Just $200 Per Year – Get Your Free 2 Week Trial

Recent Videos:

Subscriber Mailbag, Plus Market Rundown

Why Amazon Has Peaked And Tesla Could Be Cheap

Inflation Rising, Rates Rising, Stocks Do Not Care!

Stock Price Continue To Rebound, More To Come?

Stock Market Bouncing Back

Free Articles Written By Mike:

Apple Options Traders Bet Big On 15% Share Gain

Why Chip Stocks Are Still Cheap

Disney’s Stock Looks Like a Bargain

Chipotle’s Stock Rebound May Fizzle

Why Facebook’s Rally Is Lagging the Techs

Join our 3,180 Daily Subscribers And Get This Commentary In Your E-Mail! Subscribe


[vc_tweetmeme type=”follow” follow_user=”michaelmottcm” show_followers_count=”true” large_button=”true”]

Photo Credit Via Flickr

Michael Kramer and the clients of Mott Capital own shares of NFLX and NXPI

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.

© 2018 Mott Capital Management, LLC. Use, publication or reproduction in any media prohibited without the permission of the copyright holder.

Tags: #sp500 #stock #microsoft #broadcom #qualcomm #nxpi #netflix #amazon