Home » Can Biotech and Chips Keep The Stock Market Rally Alive on Nov 29

Can Biotech and Chips Keep The Stock Market Rally Alive on Nov 29

Can Biotech and Chips Keep The Stock Market Rally Alive on Nov 29

Michael Kramer and the clients Mott capital own ACAD, ALKS, AAPl

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!

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

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Good Morning Today is November 29

  • S&P 500 futures are pointing to a lower opening of 1o points as of 7:45 AM
  • The US 10-year rate is at 3.01% – Is nearing a major technical breakdown – more below
  • Dollar Index is at 96.80
  • Critical events for today: FOMC Minutes at 2 PM
  • WTI Crude Oil is $50.80

Recap of International Trading:

Hong Kong Hang Seng Index fell 90 basis points but remains in health territory and is solidly trending higher.

hong kong

Tencent (700 HK)

Also fell 90 bps to 312HKD, but again is firmly trending higher.

tencent

UK FTSE

UK FTSE continues to hover just above technical support.

uk

German Yields

German 10-year bunds continue to break down and likely heading lower, which should help drag the US yield curve lower too.

de10y

US Levels To Watch

S&P 500 (SPX, SP500)

Technical support in the S&P 500 comes at 2,715, and technical resistance comes at 2,752. A rise above 2,752 sends the index to 2,800.

spx

Chips

Chip stocks may be the group to watch as the SMH breaks out of a downtrend. Resistance on the SMH comes at $96.50.

smh

Biotech

Biotech XBI also broke out, and resistance for this index comes around $83.

xbi

Acadia (ACAD)

Acadia is the most significant weighted stock in the XBI with a 2.1% weighting. The big news for Acadia is a filing last night following their secondary offering that the famed biotech investors the Baker Brothers took a stunning 11.7 million of the 16.1 million shares offered, about 72%. It helps that they have two seats on the board of directors and that one of those seats is the chairman of the board.

$21.50 is resistance for the stock.

acad, acadia

Apple (AAPL)

It was reported after the close the iPhone XR has been Apple’s best selling phone every day.  I’m not sure if it helps the stock, because we don’t know how many phones Apple is selling.

The stock is sneaking above $180, but we need to see a follow-through today to even consider that the shares are breaking out with the ability to rise further.  The critical level to watch is $180.

AAPL, APPLE

Facebook (FB)

More negative headlines for Facebook that suggests the company was considering charging for user data. Negative headlines continue. $133 is support for the stock.

facebook, fb

Micron (MU)

Mizhuo lowered its price target on Micron to $54 from $60 as I mentioned yesterday there are still plenty more price target reductions on the way.  There is a wall of resistance waiting for this stock should it make it to $40.

micron, mu

Alkermes (ALKS)

Alkermes reported positive topline results from its Phase 3 trial in ‘3831, for schizophrenia. The drug showed a statistically significant weight reduction versus olanzapine in a head to head trial. Patients on olanzapine gained 57% more weight than those on 3831. The proportion of patients increasing 10% or more of their body weight was 29.8% for Olanzapine versus 17.8% for 3831. Additionally, patients who gained more than 7% of their body were 43% for olanzapine versus 27.5%.  Conference call at 8:30 +1 888 424 8151 passcode: 6037988

Exact Sciences (EXAS)

UBS was out with positive comments on Exact Sciences the maker of Cologuard. They have a 100 price target on the stock. It is nearing break out should it rise above $80.

exas

Intel (INTC)

Is near a break out should it rise above $49, it could result in a further rise.

intel

10-Year

Ten-year yields are nearing a technical break down should the rate fall below 2.95%. It could lead to the start of a much more substantial drop in 10-year yields. If that happens, it could cause the yield curve to flatten even further, and that would be bad news for the bank stocks longer term.  We will need to pay attention to how short-term rates continue to react following Powell yesterday and FOMC minutes today.

rates

Good luck!

-Mike

Photo Credit Via 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

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