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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March 22, 2019
Michael Kramer and the clients of Mott Capital own Netflix, Alphabet
Michael Kramer owns SPY Calls
- S&P 500 down 10 points
- US 10-Year: 2.49%
- Dollar Index: 96.67
- Oil: $59.52
- Vix: 14.04
- Japan Nikkei: +0.09%
- China Shanghai: +0.09%
- Hong Kong HSI: +0.14%
- South Kospi: +0.09%
- Australia ASX +0.45%
- UK FTSE: -1.03%
- German DAX: -0.52%
It feels like a pretty quiet day with only the UK FTSE having the biggest move overnight, as more uncertainty looms over Brexit. The new date to watch is April 12.
Also not helping are some dreadful Manufacturing PMI’s in Europe. German PMI fell to 44.7.
The US gets its own readout 9:45 AM
S&P 500 (SPY)
S&P 500 futures are pointing to a slightly lower opening today. 2,852 would be the first level of support to watch followed by 2,842, and then 2812. I’m not expecting a significant pullback. I’d be surprised if the market didn’t rally to finish the day higher.
Nike reported results and the stock is trading down some, roughly 4%. I didn’t see anything that jumped out as alarming, and the conference call would suggest that all is fine in China. $83.80 is support for the stock and should it drop below, which I don’t think it will, the next level of support comes at $81.60.
Amazon still has further to rise to around $1,850. A break out above $1,850 sends the stock sharply higher $1,900. Everything is trending in a higher direction.
Netflix is nearing a breakout and would need to rise above $378 to trigger it. It could send the stock up to $405.
Alphabet broke out rising above 1,225 and the next level to watch for is around $1,275.
Qualcomm is at a significant inflection point, rising to resistance at $58. Now it needs to break out, but the stock is a bit overbought based on the RSI, and this region is not the easiest with a healthy level of resistance. This seems like the right place for the stock to take a breather.
Boeing continues to hold support at $371, but volume is starting to dry up. I fear that means the buyers are waning. Now Indonesia is canceling orders for 49 737s. Does this begin the avalanche of cancellation? The Boeing story was all about the backlog of orders and visibility. The odds for a drop to $325 seem to be increasing.
Have a great day
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 performance. March 22