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 resistance level. Then it was the gap filling Algo’s that went to work bringing the S&P 500 lower. 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 least 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 equivalent of corporate royalty. Read it — interesting stuff. I think I now read this website two to three times a day, seriously. 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. But for now, there is an uptrend. Resistance has been established 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. 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.
Semis (SMH)
Again we can see a similar uptrend has formed the semiconductor ETF SMH. But the semis look stronger than the SPX.
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
Netflix (NFLX)
Netflix firmly cleared resistance at $271
Facebook (FB)
Yes, it is true, Facebook has officially broken out of its nearly 6-month-old down-trend, and it is about the most bullish sign I have seen all day.
Amazon (AMZN)
Amazon had an ok day, I would have like to have seen more. It was a start in the right direction.
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 their opinion or price target so we can leave it at that. $29 is a genuine possibility for this stock.
I wish I had something more exciting to add. I don’t. I guess that it then
See you Tomorrow.
Mike
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algos, machines, sp500, netflix, amazon, facebook, roku