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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Biotech and Semis Nearing Big Breakouts, As Overheating AMD Melts
MICHAEL KRAMER AND THE CLIENTS OF MOTT CAPITAL OWN SHARES OF NFLX
Stock’s continued to rally on Monday, with the S&P 500 rising to nearly 2,900. It was a healthy day across most of the sectors. But most notably it was some of those risk-on sectors that were the best performing. Biotech and Semis took charge, with both the IBB and SOXX up by more than 1.5 percent on the day. It was just a week or so ago, I noted that Semis were on the brink and needed to find a bounce, and sure enough, they have bounced. I talked more about the big breaks out that are coming and the stocks that can drive the groups higher in the member video. Biotech And Semis Breaking Out? Just too many to run through here.
The S&P 500 is trading nicely higher along the upper trading channel. Should it rise above that channel, stocks could move higher in a hurry. But for now, the best course of action may merely be a pull back, to say 2,850, giving the market a more sustainable rise. The last time I noted a break out along a channel was back in January, and that did not end well.
The IBB Biotech ETF is nearing a potential big break out, which could send the ETF nearly 10 percent higher back to the 2015 highs.
The SEMI SOXX ETF also appears to be attempting to break out rising above a downtrend. It could send the ETF back towards $197.
Netflix shares rallied most of the day, but gave a good amount back by days end. But I get the feeling the stock isn’t finished rising just yet.
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Amazon just continues to grind higher along the lower side the rising wedge, undoubtedly better than trading below it. But this stock still needs to be watched.
Well if I were long AMD here, which I’m not, I’d be a little concerned. This was a nasty reversal intraday right around 2PM. When stocks turn this hard this late in the day, it is usually a sign of more pain to come. $20.90 seems possible to me, and given the amount of the rise over the past few days, it wouldn’t surprise me. I noted in the write up over the weekend the stock needs to consolidate and to me, the $20 to 21 range seems ideal for that happen. I wrote more here on Investopedia.
That’s gonna be all for today. More tomorrow.
Michael Kramer is the Founder of Mott Capital and the creator of Reading the Markets.
I started learning to invest when I was 16 years old. At 40, I have pieced together a long career on Wall Street, working as an analyst, and a domestic and international equity trader at two multi-billion dollar equity firms.
I started Mott Capital in 2014 to follow a passion and dream of being in control of my career path.
The idea behind Reading the Markets was to help both individual and institutional investors benefit from my experience in the business and my unique approach to dissecting stocks and the markets, which helped me become a great trader.
Reading the Markets is a combination of technical, fundamental, a macro market analysis, trying to piece together the clues the market is sending in its future direction.
Reading the Markets is unique, in that the video does not only serve as a means to deliver the content but to interact, making it a personal learning experience, while also showing the user how I go about finding my research and how you can use the process to do your work.
I want this product not only to be profitable and enjoyable but also affordable.
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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.
#sp500 #semis #biotech #netflix #amazon #amd #