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Micron, Amazon, Halliburton, Anadarko All Have Big Breakouts
The S&P 500 got up to 2,713, and it stalled out at that level. It makes tomorrow price action critical, because should it rise above 2,713 it signals a strong breakout. If it should move lower tomorrow, it could serve as a double negative, with a filled gap and a reversal, while failing at resistance. I’d like to see the S&P 500 rise firmly above 2,713 tomorrow, and with some significant earnings coming up next week it could set up a positive tone.
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Technology
Technology names continue to trend higher, as well, and I think also it serves as a positive for the broader S&P 500.
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Micron
Micron stock had looked pretty lousy, and at the open, the stock seemed like it was going to cave and give us that big break lower. But then shares jumped sharply higher and took off. When looking at the hourly chart you can see a reverse head and shoulder in it, and couple it with the breakout, and the narrative suddenly changed. It was just the other day, I could make a strong case for shares retesting the April lows, and that looks completely wrong, now. $55.50 is the next level to watch with a clean rise above that level sending the stock easily on towards $58. It isn’t easy reading these chart usually, and in this crazy market, it feels downright impossible some days.
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Amazon
Two interesting points on Amazon today, first word the company has over 100 million prime subscribers. A considerable number and extremely impressive. The stock jumped in the after-hours on the news, but I am not sure it changes anything, for the stock.
The stock broke out today, can I say I’m surprised? No. I thought it would retest $1,440 first, but I guess the market had something else in mind. Next weeks earnings results will be a huge deal, and I think it may take a massive beat to advance shares further. But that doesn’t mean the stock can’t rise back to $1,600 in the interim.
I still think based on the current sales estimates, shares are expensive based on historical sales multiples, but a solid beat and strong guidance would up those estimates, and likely lower the valuation. So the upcoming results are a big deal, and the guidance will be even more significant.
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Roku
Second, Amazon announced it would partner with Best Buy to sell TVs. Roku’s stock fell hard on this news. Did the market finally realize that what Roku does isn’t so unique? Well, it isn’t, any TV maker can do what Roku does, and the rise in the stock yesterday due to ESPN + becoming available, as I said yesterday, was a complete joke. Roku is not the second coming of Netflix. By the way, if Netflix thought Roku was such a game changer, why did Netflix spin it off Roku? Netflix didn’t want to become a streaming media device company, and potentially have barriers to other streaming devices.
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Energy
These energy stocks are starting to fly, and perhaps some of the money these financials are losing is going into energy companies. As I have said, Oil looks primed to rise to $75, and it is getting close to that price, now up to nearly $69.
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Halliburton
Halliburton shares have broken out rising above $50.25, and should oil keep rising a move towards $58 seems like the next stop.
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Anadarko
Anadarko broke out as well rising above $63.75, and resistance area comes around $73.
That is going to be it.
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Tags: #stockmarket #sp500 #energy #oil #amazon #micron #roku #halliburton #anadarko #technology #energy
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Charts used with the permission of Bloomberg Finance L.P. This report contains independent commentary to be used for informational and educational purposes only. Michael Kramer is a member and investment adviser representative with Mott Capital Management. Mr. Kramer is not affiliated with this company and does not serve on the board of any related company that issued this stock. All opinions and analyses presented by Michael Kramer in this analysis or market report are solely Michael Kramer’s views. Readers should not treat any opinion, viewpoint, or prediction expressed by Michael Kramer as a specific solicitation or recommendation to buy or sell a particular security or follow a particular strategy. Michael Kramer’s analyses are based upon information and independent research that he considers reliable, but neither Michael Kramer nor Mott Capital Management guarantees its completeness or accuracy, and it should not be relied upon as such. Michael Kramer is not under any obligation to update or correct any information presented in his analyses. Mr. Kramer’s statements, guidance, and opinions are subject to change without notice. Past performance is not indicative of future results. Neither Michael Kramer nor Mott Capital Management guarantees any specific outcome or profit. You should be aware of the real risk of loss in following any strategy or investment commentary presented in this analysis. Strategies or investments discussed may fluctuate in price or value. Investments or strategies mentioned in this analysis may not be suitable for you. This material does not consider your particular investment objectives, financial situation, or needs and is not intended as a recommendation appropriate for you. You must make an independent decision regarding investments or strategies in this analysis. Upon request, the advisor will provide a list of all recommendations made during the past twelve months. Before acting on information in this analysis, you should consider whether it is suitable for your circumstances and strongly consider seeking advice from your own financial or investment adviser to determine the suitability of any investment.
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