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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MICHAEL KRAMER AND THE CLIENTS OF MOTT CAPITAL OWN NFLX, TSLA
Today is Tuesday, January 22
- S&P 500 futures are pointing to a lower opening of 16 points as of 9:00 AM
- The US 10-year rate is at 2.76%
- Dollar Index is at 96.40
- WTI Crude Oil is $52.88
- VIX: 18.45
- Critical events for today: Davos kicks-off, the UK exploring a second Referendum on Brexit
- Hong Kong Hang Seng Index -0.70%
- Japan -0.47%
- China Shanghai Comp. -1.18%
- UK FTSE -0.43%
- Dax -0.46%
The major markets around the globe are pulling back today following news from the IMF that it now sees global growth at 3.5% down from earlier views of 3.7%.
Hong Kong (HSI)
Hong Kong, for now, has paused at resistance around 27,345.
S&P 500, (SP500, SPY)
The S&P 500 is gearing up for a drop today, and now support comes down at 2,630. That is from the gap higher on Friday. Despite a fall today, the S&P 500 is still trending higher. All of the major indexes have a similar gap that needs to be filled.
eBay’s stock is gapping higher after Elliot Management noted it has built a 4% stake in the company and thinks the stock is worth between $55 and $63. It was at the end of December that we noted in the premium section how we saw bullish bets being placed in April $30 calls. Now we know why. The stock is breaking out, rising above a downtrend with the next level of resistance around $38.
Under Armour (UAA)
Under Armour has been added to the conviction buy list at Goldman Sachs. Resistance for Under Armour comes at $25. This stock has been such a disappointment over the years. I think this one is suspect until they show investors they are growing again. They have a lot of growth coming from China, so one should be careful here. Remember Apple, although Nike was strong.
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Nike was upgraded to Outperform from Market Perform at Cowen. Resistance for this one comes at $84.
Tesla is rebounding slightly after it got approval to start selling the Model 3 in Europe. Support at $300 has been firm for some time. A rebound to $330 seems possible.
The primary support level for Netflix remains at $330. Roma is up for picture movie of 2018 in the Oscars.
Roku is pointing to a lower opening as well, and should it fall below $38.70 it opens the door to that decline to $34 I have looked for.
Finally, Qualcomm saw a lot of bullish call activity on Friday, according to Trade Alert. With open interest on the Feb and March 55 calls each rising by 10,000 contracts. A buyer of those calls would need the stock to rise above $58 to earn a profit.
Good Luck 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.