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.
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MICHAEL KRAMER AND THE CLIENTS OF MOTT CAPITAL OWN NFLX, AAPL, GOOGL, ACAD
Good Morning today is November 28, 2018.
- S&P 500 futures are pointing to a higher opening of 13 points as of 8:10 AM
- The US 10-year rate is at 3.08%
- Dollar Index is at 97.40 – and is nearing a potential break out should it rise above 97.70
- Critical events for today: Fed Chair Powell speaks at Noon EST.
Recap of International trading:
The good news is that equities in Asia rallied last night, with the Hong Kong Hang Seng index rising by over 1.3%. The index has now cleared some key resistance levels, and that would suggest the index may increase about 6% more in the coming weeks.
Tencent (700 HK)
Perhaps more important is that Tencent has also broken out, and is on its way to $333HKD.
The DAX index in Germany has also broken a technical downtrend.
German 10-year rates appear to breaking down, and that may help to drag US rates lower as well.
US Levels To Watch
The S&P 500 is nearing technical resistance at 2,687, should it rise above that level the next resistance level comes at 2,720.
The Nasdaq broke a technical downtrend yesterday and now has room to run to 7,180.
Salesforce is trading higher today by 8% after it reported better than expected results and guidance. The stock has room to rise to around $149.
Today Wedbush lowered its target on Apple to $275 from $310. But still, the stock is trading slightly higher by roughly $2 to $175. The key to Apple rising is getting over $180 which has acted as firm resistance.
Lumentum’s price target was raised to $56 from $47 at Loop Capital today. The Apple supplier stock has been hammered on iPhone concerns, still, there is a substantial gap to fill up to $55 should the stock rise above resistance at $45.
Alphabet announced today that it was now going to offer all of its original content for free with commercials and no longer charge $12 per month. This proves to me that not every company can do what Netflix is doing.
Netflix is nearing a break out at $272, which could help lift the stock to the $332.
Mizuho noted that graphics processor units (GPU) are starting to rebound and that may be positive for AMD and Nvidia.
AMD’s stock has broken out of a long-term downtrend and may be on its way to $22.50 and potentially as high as $24. The stock never made as low as $16, which was the level I had looked for, but it did make it to $17.
Nvidia is nearing resistance level at $160, but I think Nvidia may be in a different place than AMD at this point. But if the stock can get over $160, then it has room to rise to $170.
Acadia priced its secondary offering at $17 and upped the deal size to $275 million from $200, a massive 37.5% increase. It points to robust demand for the stock. If the Acadia wanted to reset the narrative, it looks like they did. The stock is trading up $1.40 this morning on substantial volume. I see this as a big positive.
Good Luck today.
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 results
sp500, NASDAQ, netflix, acadia, alphabet, nvidia, amd, salesforce