Home » Don’t Look Now Bears Stocks May Finally Be Breaking Out

Don't Look Now Bears Stocks May Finally Be Breaking Out
Stocks surged on September 4, and it looks like stocks may have finally broken out after a month of consolidations.

Don’t Look Now Bears Stocks May Finally Be Breaking Out

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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September 4- Stock mentions: SPY, SMH, SQ, TWTR, V, TSLA, INTC

Michael Kramer and the clients of Mott Capital own TSLA, V

Michael Kramer owns SPY Calls

Stocks had a solid day on September 4 with the S&P 500 rising by over 1%, and rising to around 2937. The index is banging on the door nearing a potentially big break out and taking out the August highs.

There has been a clear uptrend that has now formed, along with a bullish continuation pattern known as an ascending triangle. It is setting up the potential for the index to rise to around 2950. Additionally, the region around 2935, should offer strong support for the index going forward. As what was resistance becomes support. Premium content: The Break Outs Heard ‘Round The World

S&P 500, spx

US/German Spreads

The US/German 10-year spreads is falling again, and is down to around 2.14%. I still think it will fall to around 2%.

yield spread

That will help to get the dollar moving lower.

dollar, dxy

Semis (SMH)

The Semiconductor SMH ETF did break out today, rising above resistance at $114.60.  It sets up the potential move higher towards $120.

semis, smh

Square (SQ)

Today, I wrote a bearish article on Square. I have seen some bearish options activity in the name recently. The technical chart is looking very weak too. Premium content: Betting Square Falls

sq, square

Tesla (TSLA)

Tesla fell today on news that sales in August were weak, according to an article on InsideEV’s. The data was for US sales, so it’s hard to say what it means for the rest of the markets it sells in. At this point, my view doesn’t change, and I think it could rise to around $253.

tesla, tsla

Intel (INTC)

Intel had a big day rising over 4%. Now it is at resistance at $49; the next move higher sends the stock to $50.70.

Intel, intc

Twitter (TWTR)

Twitter had a good day, rising over 3%. I still think the stock increases to around $46. I had seen bullish betting in the stock last week. Premium Content: Why Twitter’s Stock May Jump Over $45

twtr, twitter

Visa (V)

Visa is knocking on the door of a breakout too. The chart looks very similar to the S&P 500. It sets up a potential rise to around $189.50.

Visa, v

That is all.

-Mike

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