Home ยป It’s Pretty Clear That Neither The Bulls Nor The Bears Are In Charge

It's Pretty Clear That Neither The Bulls Nor The Bears Are In Charge

It’s Pretty Clear That Neither The Bulls Nor The Bears Are In Charge

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Michael Kramer and The Clients of Mott Capital own shares of NFLX

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The S&P 500 managed to hang on to a gain of 55 basis points closing at around 2,650. However, the S&P 500 had been higher intraday reaching a high of about 2,686 – a technical resistanceย level. Then it was the gap filling Algo’s that went to work bringing the S&P 500 lower.ย  It is what is, I guess. I can’t say I’m surprised. Disappointed, but not surprised.

If anything it does continue the broader trend higher that has established the last few days. We can’t be disappointed with that. It is just the damn Algo’s! UGH!

China

Before we go any further, this is a fascinating story I read in the South China Morning Post. It reflects at leastย that Trump’s unpredictable nature is starting to mess with the heads of Chinese officials. The article goes as far to say if the CFO from Huawei isn’t safe then perhaps the trade agreements between the US and Hong Kong aren’t safe either. The author notes that the CFO is the equivalentย of corporateย royalty.ย  Read it โ€” interesting stuff.ย ย I think I now read this website two to three times a day, seriously.ย  Right up there with Drudge.

S&P 500 (SPX, SP500)

Anyway, let’s move on.

We can see in the chart below precisely what happened today. There is now a clear bullish uptrend in work, whether it holds tomorrow, that is a different story, because we closed right on it.ย  But for now, there is an uptrend. Resistanceย has been establishedย at 2,686, and the new support level appears to be at the uptrend. But the good news is that we are trending in the right direction.

A couple of people asked me why the reversal. I don’t know to be honest. Was it nervousness around the No Confidence vote in the UK? Maybe. PM May won by the way, so I guess Brexit moves forward.ย  If that is the case, then perhaps we bounce tomorrow.

I think honestly it goes back to the most obvious, we gapped higher, and we filled it. It is that easy.

spx,sp500

Semis (SMH)

Again we can see a similarย uptrend has formed the semiconductor ETF SMH.ย  But the semis look stronger than the SPX.

smh

We also some solid leadership today that I had mentioned in the morning report.

Broadcom (AVGO)

Broadcom was able to break out and clear resistance at $251, and may very well be on its way to $273

avgo

Netflix (NFLX)

Netflix firmly cleared resistance at $271

nflx

Facebook (FB)

Yes, it is true, Facebook has officiallyย broken out of its nearly 6-month-old down-trend, and it is about the most bullish sign I have seen all day.

facebook, fb

Amazon (AMZN)

Amazon had an ok day, I would have like to have seen more. It was a startย in the right direction.

amazon

Roku (ROKU)

Roku was dealt a major blow today when its biggest cheerleader (Needham) cut their price target on the stock to $45 from $85. I never agreed with theirย opinion or price target so we can leave it at that.ย  $29 is a genuine possibilityย for this stock.

roku

I wish I had something more exciting to add. I don’t.ย  I guess that it then

See you Tomorrow.

Mike

Photo Credit Via Flickr

Mott Capital Management, LLCย 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.ย Upon request, the advisor will provide a list of all recommendations made during the past twelve months. Past performance is not indicative of futureย results

algos, machines, sp500, netflix, amazon, facebook, roku

 

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