Home » Here’s Why The Stock Market May Be About To Surge Higher

Here's Why The Stock Market May Be About To Surge Higher
The stock market had a yawner of day on July 9; however, after a week of consolidation, it appears primed to move higher.

Here’s Why The Stock Market May Be About To Surge Higher

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.

Otherwise, enjoy the column!

Subscribe to the Monster Stock Market Commentary and join the 1,756 subscribers getting it for FREE every day!

Follow Us on StockTwits

July 9 – Stock mentions: SPY, NFLX, AMD, SQ, AMZN, TWTR

Michael Kramer and the clients of Mott Capital own NFLX

Stock Poised To Rise?

It was like watching paint dry on the surface with the S&P 500 finishing July 9, nearly where it started. The only good news is that after struggling most the day at 2,975, the S&P managed to break above that resistance to close at roughly 2,980.

The market feels to me like it wants to go higher. It has been consolidating sideways for about a week now. I think that the next move is higher.

SPX, spy, s&P 500

Waiting

The market feels like it is waiting for something. What it is waiting for I don’t know. It could be any number of things; perhaps it is Jerome Powell tomorrow, that is when he will speak in front of the House Financial Services Committee. Will it be entertaining to watch, yes, I think it shall be. Is Powell going to say in his opening monologue that he plans to cut the Fed Funds rate by 50 bps at the July 31 meeting? Doubtful. I sense that the market will learn nothing more from Powell that it didn’t know two weeks ago.

As of right now, the “market,” based on data from the CME Group, has the odds of 2 rate cuts following the September meeting at 60%. Yes, it seems possible, but that could change following the CPI and PPI reports later this week.

Netflix (NFLX)

Netflix had a good day but fizzled by days end. NLFX keeps getting close to breaking out, and it just can’t. The RSI continues to trend higher, and  I continue to believe this is a stock heading towards $400. When is the part I can’t figure out?

netflix, nflx, stock , july 9

Square (SQ)

Square had a big day and increased above resistance at $75; I think it sets up a move to $83. I wrote a commentary in the premium area today about the breakout. I now provide audio explainers to go along with the write-ups. (See: Square’s Stock Is Breaking Out)Square, sq, stock july 9

AMD (AMD)

AMD also had a great day rising above resistance at $32.50, and I think it could be on its way to $34.50. I noted the break out in today’s mid-day update. The mid-day update is a new audio feature I have rolled to subscribers, it a 3-minute snapshot. 

amd

Amazon (AMZN)

Amazon broke out today, and now the next stop is like $2025.

amazon, amzn

Twitter (TWTR)

Twitter appears it broke a downtrend today, and an increase to $42 seems possible.

twitter, twtr, stock , july 9 nflx, amzn

Have a good one

-Mike

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.