MICHAEL KRAMER AND THE CLIENTS OF MOTT CAPITAL OWN NFLX, AAPL, GOOGL, ACAD

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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.

Germany

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.

NASDAQ

The Nasdaq broke a technical downtrend yesterday and now has room to run to 7,180.

Salesforce (CRM)

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.

Apple (AAPL)

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 (LITE)

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 (GOOGL)

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 (NFLX)

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

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 (NVDA)

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 (ACAD)

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.

-Mike

Photo Credit Via Flickr

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