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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Micron Trading Underwhelms, Tesla Put To The Test, and Boeing Heads Lower
MICHAEL KRAMER AND THE CLIENTS OF MOTT CAPITAL OWN SHARES OF ALKS AND TESLA
Happy Summer Solstice!
The S&P 500
The S&P 500 finished lower by about 60 bps and pretty much killed my theory we would cross 2,800 this week, but it does not change my longer-term viewpoint, that we will continue higher this year.
We retested the lows seen on the 19th right around the 2,743 at support, a good sign that the index held and bounced. The good news is the index continues to hold essential levels.
The NASDAQ also found some help at key support levels as well.
Moving on to sectors, Banks continue to struggle, and most of the banks were trading lower after the stress test results tonight.
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Industrials fell below essential support, and the uptrend, which has been in place since the election of 2016, as the reflation continues to unwind. (See: The Reflation Trade Is Dead, Plus Micron, Roku, Netflix, and Biotechs)
Boeing is a perfect example of how quickly things have changed. It was just last week that we were talking about big options bets that Boeing would continue to rise and how it looked poised to break out. But the sellers were unwilling to let the stock climb much above $372. (See: 3 Stocks Set To Rip, and 4 Stocks Set to Dip)
Now share look set to ready to fall to $319 with no support in between.
The materials look no better.
Biotechs did get hit hard today, but this look more like a technical gap refill, then anything fundamentally wrong.
One biotech that got crushed, that I happen to own is Alkermes, on a decidedly bearish note from Morgan Stanley. Accord to this guy, Vivitrol sales, their drug for opioid addiction, are slowing, While the outlook for two keys medication in the pipeline with events later this year, do not look promising. Whooo! Talk about bad news! I mean geez. Did I sell? No, because I happen to disagree with his outlook. I have owned these shares for nearly four years now. Biotech investing is the hardest sector to invest in, period. If you don’ have the stomach to handle the volatility, then you shouldn’t be in the space.
The Tesla short are testing support at $346, and the nerve of the bulls. Tomorrow may be telling, who has more conviction.
Boy, I’ll tell you, trading and investing so freakin’ hard. Micron posted outstanding numbers, got a bunch of upgrades, and still an underwhelming performance. Like I said last night don’t get all excited yet. What happened by day’s end? Most of the significant gains were gone. Was it a gap fill? It looks like one. To be honest, this was such an underwhelming performance, and until proven otherwise, without a solid rise above $62, the trend is lower.
Please do not go posting Fake News, saying I have been a bear in Micron since January, or some BS. I noted the break out in Micron on May 9. (See: Stocks Really Breakout, A Look At Roku, Where Does Oil Go)
Does my point of view change on Micron or any stock from time-to-time, of course! This blog isn’t just about investing, but trading. Do you want to trade with the big boys? Then you better be willing to change your mind and make a decision fast! You never know when you are going to get that call from a sales-trader, with a seller of 500k share, ready to shove them down your throat, with more to go. The one thing you can’t do is crap your pants!. Make a decision.
And with that, good night!
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.
#biotech #banks #industrials #boeing #materials #alkermes #tesla #micron