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 OWNS AAPL, ACAD,
S&P 500 (SPX, SP500)
Stocks pulled back some today with the S&P 500 down about 60 basis points. The bad news is that S&P 500 failed to rise above resistance at 2,752. The good news is that it managed to stay above support at 2,716. It sets the S&P 500 up for a potential pullback on Monday to 2680 to fill the gap from the markets big up opening on Halloween.
The NASDAQ similarly failed at resistance at 7,422 but held support around 7,300.
Premium Video Content For More Coverage: Amazon, Facebook, Netflix, Acadia On The Rise
Let’s talk about Apple for a minute because it seems like everyone is just so upset that Apple will not be disclosing the number of iPhone units its sell every quarter. WHO CARES! If Apple sold 200 million iPhones but total revenue fell by 50% would be that good or bad? It would be bad. If Apple sold 50 million iPhone’s but revenue was rising by a steady 15-20% per year, would that be good or bad? It would be good!
I don’t care if Apple sold 80 million iPhones or 79,999,999 iPhones. What I care about is seeing revenue and profits continue to rise. That is it! Apple’s unit growth has stagnated for some time, but its revenue has surely been rising. That is because services are growing and the average selling price for iPhones has been increasing.
It is a good thing. Because we won’t get all the intra-quarter chaos when we get some crazy report out of Japan or Taiwan that suggests units will be light. They can’t be light because nobody will know where the total units are supposed to be! We will have rely on growth and projections. The market will get over it.
Amazon pieced together a perfect day. It remained above its downtrend, confirming the breakout, while also retesting the breakout. I still think Amazon is heading towards $1,760.
Facebook is nearing a good size break out that could lead to the stock rising to $166.
Micron is consolidating nicely around $40.25, and still looks on pace to go to $42.00
It is nice to see Acadia is recovering from the confusion on Wednesday. The company reported solid data for its trial in depression, Clarity. I reviewed the data, listened to the call, and liked what I saw.
I think I may have been one of the very few around expecting positive results, and that is what we got.
At week five there was a clear separation from Placebo in HAMD-17
Meanwhile the same was true at week 10
They report next week, and hopefully, they clarify all the confusion on the conference call and get the stock going in the right direction.
That is it
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.
S&P 500, SP500, Apple, acadia, micron, amazon, nasdaq, facebook