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.
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sp500, NASDAQ, netflix, acadia, alphabet, nvidia, amd, salesforce