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 Alphabet, Netflix, Visa, Mastercard
S&P 500 (SPY)
Stocks had another dull trading session based on the S&P 500, but it did manage to close slightly higher around 2908. It would seem that now the S&P 500 is getting ready to make a push towards 2,915.
The pattern in the S&P 500 is forming is an ascending triangle, and it would suggest that the market does break out and make that next move high above 2,915 over the next 2 to 3 days. Overall, the broader market continues to look healthy. Here is a video I did today on the subject: The Health Of The Stock Market, What The Dollar Action Means
Health Care (XLV)
The health care ETF XLV finished flat, and the chart below shows how the ETF rose to resistance at $86.40 and failed. Indeed not the greatest of signs.
The biotech XBI ETF also failed at resistance this morning at $85.25.
Meanwhile, investors seem to have come to their sense today about Netflix, and the not so slowing subscriber growth, with the stock surging nearly 5%. The shares closed right at resistance at $378. It will likely result in stock breaking and rising to the next level of resistance around $388. You can see that the RSI is nearing a big break out too, confirming the price.
Amazon also had a big day rising by about 1.5%, with the stock pushing towards $1903. I’m going to have to look at changes in the options trading following today to see if there is a change in the overall outlook for the stock.
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Facebook also continues to move higher and is continuing to run towards around $186.
Alphabet also had a good day rising about 1% and is closing in on 1,270.
Square had a pretty good day but still isn’t out of the woods. The stock managed to stop rising at resistance around $73. So we can’t get bullish on this stock again until it can increase and close above that resistance. Sorry, but if I had to choose, I’d still rather own Visa and Mastercard over Square, but then again I do hold Visa and Mastercard, and not Square.
Visa is one stock that continues to climb, and I have mapped out a path to around $165.
Mastercard appears to be on a path towards $252.
That it’s it for 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.