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Earnings will continue to dominate the news this coming week, although some key events from last week will still need to be monitored. Tech, Biotech, and Financials need to be paid attention too, but perhaps the Dollar may even be more important.
Earnings
Apple and Tesla are headlining earnings for the week of July 31. This quarter will act as a placeholder for Apple with all eyes turning towards the Fall release of the new iPhone unless the company reports something truly out of left field. Tesla will be all about cash burn, as CAPEX should be high with the launch of the Model 3, but most importantly, delivery guidance for the second half of 2017.Â
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Tech and Biotech
Tech (XLK) got walloped on Thursday but stabilized and avoided a further sell-off on Friday. Biotech (IBB) also was lower on Thursday but bounced back nicely on Friday. We need to observe these two sectors, as a further decline in the group could signal investors are starting to move out of the riskier side of the equity market. Despite the sizeable sell-off on Thursday, the two sectors were down less than one percent for the week.
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Financials
After breaking out last week, the financials finished the week up only about 50 bps, after being up nearly 2 percent. But the pull back we saw towards the end of the week, appeared to be a bit of filling the gap. This would indicate that banks and the XLF will likely continue to move higher in the near-term.
The Dollar
The Dollar is close to a major breakdown and will need to be watched closely, the 93 level in the Dollar is index critical. A weak Dollar could be bullish for commodities and materials (XLB). Unlock Deeper Insights with Exclusive Member-Only Video Content on The Market Chronicles YouTube Channel – Just $34.99/Month
Good Luck!
-Mike
Michael Kramer and the Clients of Mott Capital owns shares of  Tesla.
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This report contains independent commentary to be used for informational and educational purposes only. Michael Kramer is a member and investment adviser representative with Mott Capital Management. Mr. Kramer is not affiliated with this company and does not serve on the board of any related company that issued this stock. All opinions and analyses presented by Michael Kramer in this analysis or market report are solely Michael Kramer’s views. Readers should not treat any opinion, viewpoint, or prediction expressed by Michael Kramer as a specific solicitation or recommendation to buy or sell a particular security or follow a particular strategy. Michael Kramer’s analyses are based upon information and independent research that he considers reliable, but neither Michael Kramer nor Mott Capital Management guarantees its completeness or accuracy, and it should not be relied upon as such. Michael Kramer is not under any obligation to update or correct any information presented in his analyses. Mr. Kramer’s statements, guidance, and opinions are subject to change without notice. Past performance is not indicative of future results. Neither Michael Kramer nor Mott Capital Management guarantees any specific outcome or profit. You should be aware of the real risk of loss in following any strategy or investment commentary presented in this analysis. Strategies or investments discussed may fluctuate in price or value. Investments or strategies mentioned in this analysis may not be suitable for you. This material does not consider your particular investment objectives, financial situation, or needs and is not intended as a recommendation appropriate for you. You must make an independent decision regarding investments or strategies in this analysis. Upon request, the advisor will provide a list of all recommendations made during the past twelve months. Before acting on information in this analysis, you should consider whether it is suitable for your circumstances and strongly consider seeking advice from your own financial or investment adviser to determine the suitability of any investment.