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!
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Michael Kramer and the clients of Mott Capital own Apple
S&P 500 (SPY)
The stock market posted a solid day with the S&P 500 rising about 20 basis point. We continue to inch closer to the all-important level of resistance at 2,630. We did make it to about 2,625 and then saw a minor pullback. I talked about it a bit more in a video today on the Marketplace service. Can Banks Lead Stocks Higher
Russell 2000 (RUT)
For now, the Russell is stalling out around 1,454.
The NAHB/Wells Fargo US Housing Market Index ticked up to 58 in January from 56 in December. It is beginning to look as if the PHLX housing index (HGX) is creating a bullish flag, which could take the index above 269. The RSI suggests that momentum is on the side of the index rising. It would be positive for the overall stock market.
There are signs that there is a similar pattern forming in the discretionary ETF XLY.
We can see that NASDAQ is also getting close to something happening.
At the risk of sounding wishy-washy, one could argue that stocks are about to go on a significant run higher or about to drop.
One has to wonder where the leadership will come from? For the most part, technology has been pretty dead, except for yesterday’s Netflix induced rally. The banks have had a massive rally already, and one has to wonder how much they have left?
The Bank Index (BKX) broke above resistance today at 94, and that sets up a test at the 97 level.
Bank of America (BAC)
Bank of America had a big move higher today over $28, and that puts $29.50 into play. But that RSI is getting high and that would at least a suggest a pullback is on the table at some point in the not to distance future, perhaps to falling to around $26.75.
JP Morgan (JPM)
JP Morgan managed to get close to breaking out but failed. The RSI is in a horrible downtrend, and at the moment, I don’t see this stock rising.
Goldman got pretty close to $200, and should it rise above that price it has room to go to $215. But again, this has gone awful far in a really short period.
Apple is trying to break out, could it be a leader? So far it can’t manage to close over $155, which has been stiff resistance. This is a free article I wrote on Apple today. Apple’s Stock Is Witnessing Bullish Momentum
So we will need to wait and see which way the market break. Perhaps, I do not want to see the obvious because I do not wish to believe that stocks will fall. But, if I remove the bias, I have to admit, the charts overall do not look bullish at this exact moment.
AMD fell sharply today. I couldn’t find any news for the drop, other than broader weakness in the group. The stock is currently sitting on support, teetering on a potential decline. I can see this one falling to around $18.50. Should that happen, it will result in a failed break out, not good.
General Motors (GM)
It just doesn’t seem meant to be for GM; the stock STILL can’t get over $38!
What about Roku? Nope, still stuck below $43.
So far it would seem my thoughts that Micron could rise to $40 have been wrong.
Nvidia can’t get itself above $151, and that likely means it is heading back to $139.
Let’s see what tomorrow shall bring.
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