The Machines Have Runamuck

[vc_row css_animation=”” row_type=”row” use_row_as_full_screen_section=”no” type=”full_width” angled_section=”no” text_align=”left” background_image_as_pattern=”without_pattern”][vc_column][vc_tweetmeme type=”follow” follow_user=”michaelmottcm” show_followers_count=”true” large_button=”true”][/vc_column][/vc_row] Get This In Your E-Mail Subscribe

More signs the machines have been reprogramed. Of course, that is a joke, right; everyone knows the machines don’t control trading, right? (sarcasm). Once again, the S&P 500 gapped lower, and failed to fill the gap by days end. Notice any patterns in the chart below recently; you should, the last 4 out of 5 days, have seen the same thing happen. Gap lower, recover some of the losses, just about enough to get back to the opening print, and then the rally just falls flat on its face, not able to go positive. Anybody think, tomorrow will make 5 out of 6 days? Chances are pretty good we see the same pattern again.

[widget id=”wordads_sidebar_widget-18″]

I still believe we are headed to 2,500, again it is nothing catastrophic even if did.  In fact, to start the year, very few if any investors saw the S&P 500 rising to 2,500. We’ll I did. But that is not the point; this is likely to be a minor 4-5 percent pullback in a much longer-term uptrend, bull market.

[widget id=”wordads_sidebar_widget-18″]

Surprisingly,  I called the rise to over 2,500 on December 22, 2016

---

Sign-up for our premium content “Reading The Markets”  and a get Two Week Free Trial Period

You can find it on the Seeking Alpha Market Place – 

Premium Content: Benefits include the ability to reach out to Mike with questions through a chat room, direct message, or comments. 

We will respond to questions in short order and will respond to questions with full-post or video segment, just not one or two-word answers. 

Just $40 per Month

Biotech’s Signal A Bottom

GE: Just Not Worth It Anymore

Disney Is Just Too Cheap

[widget id=”wordads_sidebar_widget-18″]

---

Biotech Sector Comes Alive

Look at the strength of the Biotech sector in a lousy tape. Look at that chart below of the Biotech ETF, $IBB, see what I see? Yeah, a double bottom, over two days, In a horrible market.

[widget id=”wordads_sidebar_widget-18″]

Even more impressive look at the close for 4 of the big 5. Celgene, Biogen, Gilead, and Regeneron. All up, not far off the highs of the day either.

CELG Price data by YCharts

The sector has been pounded for over a month, but the technical support level at $300 to $303, has held firm and will not be easy to break.

[widget id=”wordads_sidebar_widget-18″]

Watch the biotechs, and watch the big 5 stocks. Stocks that don’t go down in a lousy tape, only have one way left to go, up.

Good night.

Free Articles Written By Mike: 

Why Coca-Cola’s Biggest Return May Be Frustration

Biotech Alkermes Could Jump On Opioid Treatment Sales

Why GM Could Slide 10% After Bull Run

Why Biotech Stocks Are Nearing a Rebound

Higher Bid For Qualcomm Is Unlikely, Traders Indicate

Why Netflix, Nike and Starbucks Are Breaking Out

S&P 500 May Pull Back, Setting Up 20% Gain By End 2018

McDonald’s and Starbucks: A Case of Perception Vs. Reality

Nvidia Traders Expect More Gains for the Stock

Biotech Celgene Could Rebound By More Than 15%

Exxon, Chevron, and Oil Are Breaking Out

We offer a lot of great commentaries all week talking about the major and relevant market events. Be sure to subscribe to get this all and of all free commentaries sent directly to your inbox or follow us on Twitter.

-OR-

[vc_row css_animation=”” row_type=”row” use_row_as_full_screen_section=”no” type=”full_width” angled_section=”no” text_align=”left” background_image_as_pattern=”without_pattern”][vc_column][vc_tweetmeme type=”follow” follow_user=”michaelmottcm” show_followers_count=”true” large_button=”true”][/vc_column][/vc_row]

Photo credit via Flickr

Michael Kramer and the Clients of Mott Capital owns shares of CELG

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.

© 2017 Mott Capital Management, LLC.  Use, publication or reproduction in any media prohibited without the permission of the copyright holder.

 

 

$spy, $SPX, $IBB, $CELG, $BIIB, $AMGN, $REGN, $GILD, #SP500, #biotech, #stocks, #celgene