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Michael Kramer and the clients Mott capital own ACAD, ALKS, AAPl
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.
Tencent (700 HK)
Also fell 90 bps to 312HKD, but again is firmly trending higher.
UK FTSE continues to hover just above technical support.
German 10-year bunds continue to break down and likely heading lower, which should help drag the US yield curve lower too.
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.
Chip stocks may be the group to watch as the SMH breaks out of a downtrend. Resistance on the SMH comes at $96.50.
Biotech XBI also broke out, and resistance for this index comes around $83.
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.
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.
More negative headlines for Facebook that suggests the company was considering charging for user data. Negative headlines continue. $133 is support for the stock.
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.
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.
Is near a break out should it rise above $49, it could result in a further rise.
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.
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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