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Here’s Why Nvidia, AMD, BABA, BofA, And Roku Still Have Further to Fall

MICHAEL KRAMER AND THE CLIENTS OF MOTT CAPITAL OWN SHARES OF NFLX

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S&P 500 (SP500, SPX)

The good news is that the sell-off from last week took a breather today. The S&P 500 did trade lower by 45 bps. But the index managed to hold the lows of the day and trade sideways for the most part. Much better than what it could have been. (Premium Content: The One Reason Stocks May Be Falling That No One Talks About)

NASDAQ

The NASDAQ rose a bit today, nothing fantastic, but again it is good to see the index hold the lows around 7,400.  It also managed to trade sideways through a short-term downtrend. I’d like to think it is the start of a move higher back to 7,600.

Yields

The 10-year Treasury rates have traded sideways through an uptrend; I’m hoping that means we see yields fall.

Biotech

Biotech stocks fell lower by 2.25% today. Things have turned ugly for that group. The XBI fell below support at $85.25, and should the ETF fall below $82.90; then I fear it could fall to roughly $78.60.

 

Banks

The bank stocks could also be about to take another leg lower if they fall below support at 97 on the BKX index.  A drop below support may lead to a decline to 94.

Netflix (NFLX)

Netflix has filled all of its near-term gaps. Does that mean it is about to rise suddenly?  I’d like to think so, but it is not likely. The healthy option would be for the stock to build a solid base around these levels and sit here for a few weeks. I doubt that is how plays out. We will have to see what happens tomorrow.

Amazon (AMZN)

Amazon got a big price target increase today. Credit Suisse increased its price target on the stock to 2,400 from 2,100. The market did not care.  Sure the stock was up 1.5%, but the stock is still 12% off its highs. If this price target increase had come about a month ago, Amazon would have been up far more. It shows us just how mellow the mood of investors has become.

Nvidia (NVDA)

Nvidia managed to hold around $230, but that chart still looks horrible, and I still think it falls to $217.

AMD

AMD bounced today, but failed at resistance around $25.70. Not a good sign.

Alibaba (BABA)

Alibaba was up nicely today by 4%. I’m not sure that will last, so do not get too excited.  The stock failed to get over resistance at $151.60. We will see what happens after tomorrow, and what China does tonight to prop up its stock market. 

Nektar (NKTR)

Nektar shares fell sharply today as investors re-evaluate the competitive landscape for NKTR -214.  The stock could be heading lower still to $34.10.

Bristol-Myers (BMY)

Bristol stock fell in sympathy since it has a strategic partnership with Nektar. Bristol is back to the lows of the years. If support doesn’t hold, it has further down to go.  Investors have turned negative on Bristol’s cancer drug Opdivo as well.

Microsoft (MSFT)

Microsoft is trying to stay in step with the uptrend. Nothing really changes at this point for the stock.

Roku

Roku rallied right to resistance around $56, and failed. Surely not a good sign. $48 coming?

BofA (BAC)

BofA looks like it is going to $26.

That’s going to be it.

-Mike

Photo credit via Flickr

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.

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