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 Acadia, Netflix, Tesla
Michael Kramer owns SPY Calls
- S&P 500 Futures +17
- US 10-Year 2.45%
- VIX 15.8
- Dollar Index 96.51
- Oil +59.54
- Japan Nikkei +2.15%
- Shanghai -1.5%
- Hong Kong HSI +0.15%
- Australia +0.07%
- South Korea KOSPI +0.18%
- UK FTSE +0.22%
- German DAX +0.16%
- The German Ifo Survey rose to 99.6 versus estimates of 98.6, suggesting business sentiment may be improving ever so slightly in Germany. It is the first time the survey has increased since August.
- Members of UK Parliament have taken control of the Brexit process.
S&P 500 Futures
The S&P futures are rising above critical levels of resistance today at 2,818 the first positive sign of the day.
S&P 500 (SPY)
I continue to believe that the S&P 500 will work to refill the gap at 2,852 from last weeks sell-off.
One thing to watch is the 10-year yield. For now, the market is fixated on the direction of rates. Yields are moving up today and for now, are holding support around 2.4%. It seems reasonable to me 10-Year could rise back to 2.53%, at least for the short-term.
The VIX index tested and held resistance around 17.50 yesterday and is now retreating another positive sign that stocks should be on the rise. A drop in the VIX below 15.20 sends stocks much higher.
Nvidia is rising today after it was initiated at Piper Jaffray to overweight with a $200 price target. I noted yesterday in a free write-up that the stock looked poised to rise back to $198.
Netflix continues to rebound, and I think this stock can work itself way higher back to $378.
I noted yesterday in a premium article that there was some bullish option betting in Citigroup that suggests shares may rebound back to around $65 by the middle of April. Support “around’ $61 has been fairly firm, and as long as the stock can hold that region of support, a rebound seems possible. Bullish Betting On Citigroup Indicate Shares May Rise
Tesla’s stock has been destroyed, and the stock totally did not work the way I had originally wanted or thought. But this region around $250 to 260 has typically offered good support for the stock. As long as that hold that stock should rebound. Interestingly, the RSI is still trending higher, which would suggest that the longer-term trend in the stock is still higher.
Acadia is still trending higher and there appears to be a bullish rising triangle pattern forming which would indicate a breakout and move to $31 may be on the way.
Good luck 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 performance. March 26