Biotech and Russell Bounce Off Critical Support Levels

Michael Kramer and the clients of Mott Captial own Microsoft, Skyworks

S&P 500 (SPY)

Independent macro and options research, published every trading day — $85/mo or $750/yr

Retail sales came in at 1.6% for March better than estimates of 0.8%. Also, GDPNow ticked up 2.8% for the second quarter from 2.3%. But on this over the weekend.

Stocks pieced together a solid day and what was best of all was that both the Rusell 2000 and the Biotech XBI gave a solid bounce at crucial support levels. Does that mean everything is fine and dandy for Monday? Not sure about that, but it is undoubtedly better than the alternative.

First and foremost the S&P 500 has now filled the gap at 2,891, and that should set up a much better week of April 22.

Navigating The Market · By Michael Kramer

Independent macro and options research, published every trading day.

Daily written analysis covering gamma exposure, dealer flows, key levels, and the macro drivers moving markets. Includes full video access.

$85/mo or $750/year Save $270

Start reading today's report →

Recent Subscriber Analysis

Dispersion Extends, Inflation Swaps Break Out, And A 2022 Oil Echo

Dispersion At A Rare Extreme — May Begin to Unwind This Week

Stocks Are Rising As Liquidity Tightens And Risks Build

A Gamma Squeeze Appears To Be Driving Semiconductor Stocks Higher - Advanced Topics

Dispersion Trade In Motion

Russell (IWM)

The Russell fell briefly below support at 1565 but managed to reclaim it by days end.

Biotech (XBI)

Meanwhile, the XBI had a that solid bounce off of support around $82.

Square (SQ)

Well, I think square has broken down, falling below support of the descending triangle — it setup up a further drop to around $68 and perhaps as low as $65.50.

Skyworks (SWKS)

Skyworks fell back to $90 and could drop back to support around $88 after failing at resistance at $93. The longer-term trend is still higher.

JD (JD)

JD.com looks like it is getting ready to make its next big move higher with $35 as the target.

Microsoft (MSFT)

Microsoft continues to go, and I still think $127 is in its future.

In the meantime, enjoy the long weekend!

-Mike

Michael Kramer publishes independent macro and options research read across 10+ platforms and by institutional desks. For research syndication, licensing, or consulting inquiries, visit michaeljkramer.com.

Photo from Flickr

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 results.

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.