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 TESLA (TSLA) AND Cisco (CSCO)
June 12 – Stock Mentions: SPY, TSLA, CSCO, BA, BABA, QCOM
- S&P 500 Futures: -9 points
- US 10-year: 2,12%
- Dollar Index: 96.65
- Oil: $51.79
- VIX 16.34
- Shanghai Comp. -0.56%
- Hong Kong HSI -1.73%
- Japan Nikkei -0.35%
- South Korea KOSPI -0.14%
- Germany DAX -0.50%
- UK FTSE -0.66%
Stocks around the globe are moving lower on June 12. It isn’t surprising given the sharp rise we have seen in recent days. When running through the global charts, I do not see anything that I would consider to be disturbing to me. It hard to say at this point, it is also hard said that there has been a change in the trend. We will just be forced to watch and monitor today’s action. A pullback to 2,850 would not seem unreasonable at this point to me. However, I have no reason to believe that a pullback is in the cards.
US Trading for June 12
I had left off yesterday, feeling as if the next move in the S&P 500 would be higher to rechallenge 2,915. However, as of this morning, that appears to be the wrong call.
S&P 500 Futures (ES1)
For now, the S&P 500 futures are holding support around 2,876. If for some reason that level breaks, the next significant level on the S&P 500 minis is around 2,856.
S&P 500 Cash (SPY)
The S&P 500 cash market has an unfilled gap around 2,850 and then again around 2,750. Again, I don’t see that happening at this point, but it is good to keep in the back of your mind for reference. However, I do continue to think that a retest of 2,915 is in the cards, if not on June 12, then perhaps later this week.
Tesla is on the rise on June 12 after a pretty active shareholder meeting. My view on Tesla hasn’t changed, and I still like it for the longer-term. The meeting confirmed my belief Tesla is evolving and demand for its cars are much stronger than people give it credit. Where I live, I have seen more Model 3 and X’s on the road recently. I’d even go to say I see more Model X’s than S’ and 3’s at this point. (See Premium Content – Does Tesla Really Have A Demand Problem? from May 23)
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TSLA appears to be on pace to challenge $225, and an increase above that level sends the stock back to $250. The RSI has turned higher and broken its downtrend. My guess is for the TSLA to rise to $250, and potentially higher.
Qualcomm is falling on June 12 after the FTC asked the judge on the anti-trust case to deny Qualcomm’s request to delay the enforcement of the ruling. It had seemed the stock may break rising above $70, but that has changed. Additionally, the stock has formed a head and shoulders on the intraday chart. Support for the stock seems stable at $66; I think the downside is limited for now to $66.
Cisco is also dropping on June 12 after it was downgraded by William Blair on June 12 to Market Perform from Outperform. Cisco’s stock had been breaking out yesterday, and now that is on hold. I think this one is still trending in the right direction, and break out is likely a few days away.
Boeing appears to be in a downtrend, and the channel suggests that $320 is the horizon, I’m still sticking with this view.
Alibaba failed to break out yesterday when it challenged $166, and now I fear it may falling back to support at $151.
Have a great one!
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.