Examining Micron, Roku, Intel Trading, Plus Dollar, Rates About To Surge
It looks likes the S&P 500 is gearing up for its next run higher, with just a few days left in the year. The S&P 500 has been able to fill the gap, and could now make that push over 2,700.
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Again, it has been my belief if the S&P 500 can move above the February/Brexit trend line, we could see a significant acceleration in the rate at which the S&P 500 rises.
We’ll see where it goes from here.
Micron
Micron shares really didn’t impress me given the strength of the results. Micron surged by nearly 5 percent, but given its recent pull back from around $50, a move back to about $46 over the past few days, doesn’t seem that big. Remember the markets love to play fill that gap, and although the stock gave back some of the early gains, and it might have more to fall.
Volume levels were not even that impressive, so I think that this one still needs to watch very careful with, despite the significant beat and raise.
The situation reminds of a position I use to own in VALE and Gilead. Two companies very different business, but the market spoke pretty loud. They were both stocks at one time that regularly beat and raise results, and after significant runs, eventually, the shares stopped rising on good news. The reason, the market began to say the earnings were not sustainable. When stocks don’t climb on strong results, it speaks of an underlying problem.
It maybe too soon in this case with Micron, but one worth watching.
Hopefully, we do not need to discuss Micron again for some time again.
Roku
Roku was lower today, and it looks headed back to the lower end of the channel at $48. Watch that channel bottom a move below it sends the stock sharply lower. Volume is still anemic, and the RSI is now trending lowe
Intel
Intel is getting close to a major breakout. If the stock crosses $48, it could have much further to go. More on this tomorrow.
Rates
It was just the other day that we were talking about rates on the 10-Year breaking out, now rates rest at 2.5 percent. Not a huge move, but everyone was so panicked about the flattening yield curve! Well, it is likely to start expanding again. Watch and be amazed at how all the macro analysts got it wrong again!
If it breaks through 2.5 percent, it has much further to run, perhaps to 3 percent.
Dollar
I’m not sure anymore what is going on with the Dollar, just look at the chart below. On the one hand, it has a reverse head and shoulders, and on the other, it has a head and shoulders. Confused, good, because I am too.
Just look at that. I can’t make heads or tails which way the Dollar will go, and I don’t think the market is sure either. On the one hand, you have rates going higher, which should be bullish for the Dollar, while more massive deficits from Tax reform, which is likely bearish for the Dollar.
But when you look at the chart of the Euro, it is little more clear. It points to a Dollar that appears to be on the verge of strengthening. Because the Euro just continues to fail near the 1.19 level.
Then when viewing the Yen, we can see it is on the verge of a massive breakout, which means it about to weaken materially, which, again is bullish for the dollar.
Night
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Tags: #micron #roku #dollar #rates #sp500