You Just Can’t Make This Stuff Up

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There is some stuff you just can’t make up, and when it comes to intraday trading and patterns, the consistency is undeniable.  The market today has either become too predictable or the machines are just all programmed to do the same things.

Apple

The SP 500 gapped lower to start the day on concerns as usual, about the demand issues on the iPhone. It has been nearly two-weeks since the last panic.  From a marketing standpoint Apple ($AAPL) did mess things up, big. They should have released the iPhone 8 and X at the same time. If the pushback meant making the stock market upset so be it. Because now there is just extensive speculation about the demand being weak. Obviously, it will be weak, because everyone is waiting for both phones to be out to compare them I sure am.

The Suppliers

Take a look at when some of the big Apple suppliers are reporting earnings and when Apple is reporting earnings. Go ahead, see if you notice anything different about the timing now versus last quarter.

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The Predictability

The chart below shows the gap open at the lower on the SP 500. Behold, we find support at the 2,550 level, and then retrace and fill the gap.

The Technology Select Sector SPDR ($XLK) is example number 2.   The XLK gapped lower at the open, fills the gap created back on the October 15. Even more amazing, not only did the market find the gap to fill, but it also managed to bounce right off the upper bound of the XLK’s trading channel, which the ETF has now managed to rise above.

Next up, is Netflix ($NFLX), gap lowers, fills it, stock closed right at support/resistance levels.

 

Thematic Growth Investment Portfolio – IB Asset Management

Mott Capital Management uses a long-term thematic growth approach to investing in equities. We search for investments that both reflect and help to shape…

Apple

Apple same thing, Gap filled at $150, Gap filled at $160, next gap to be filled again in orange, at, you guessed it $160. Remember when we called the Apple bottom correctly? Here is a reminder

Biotech

Stupid me, I have been so confused by the Biotech ETF ($IBB), you know I total missed the gap created on October 2. Well, it was filled today.  Heading back to $340? What do you think?

How about Celgene, and its 8 percent weighting in the IBB being down tomorrow on the bad Phase III data. Well, there are gaps, which need to be filled at a critical support level, at $127.  Where was the stock trading in the after hours?

Oh my, it was trading at.. You guessed it.. $127. With a low of 125.50…. see…

Well.. At least we know the game.

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Michael kramer and the clients of Mott Capital own shares of CELG,NFLX

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.

Tags: Amazon, Nvidia, SP 500, Quarterly Results