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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DECEMBER 18, 2019
STOCKS: NFLX, MU, TSLA, NVDA, FB
MACRO: SPY, IWM
MICHAEL KRAMER AND THE CLIENTS OF MOTT CAPITAL OWN NFLX, TSLA
MICHAEL KRAMER OWN IWM CALLS
Reading The Markets Premium Content on Seeking Alpha MP For December 18: The first 2-weeks are FREE to try
- Price Discovery – Why Stocks Seem To Fall For No Reason
- Stocks May Look Boring But They Are Not
- Tesla’s Stock May Continue Higher On Bullish Change In Trends
- Morning Commentary – Making The Case For S&P500 3400
False start? So much for my break out today. I’m not perfect. I do get things wrong from time to time :).
S&P 500 (SPY)
It was a dull day on the surface, but there was plenty of action beneath it. The S&P 500 finished flat at 3,192.
The pattern this week is nearly identical to the one last week. With the S&P 500 gapping higher on December 6, followed by sideways trading until December 12, of course, there was a weekend in between. This time we gapped higher on December 16 and based on the chart either late tomorrow or Friday should be a move higher.
Either way, it may not matter. We will run into the uptrend at some point, and then something will give. Right now, the path of least resistance continues to be higher.
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Russell (IWM)
The Russell had a better day and it seems to still be on path to 1,673.
Micron (MU)
Micron is rising after reporting results, with guidance that looked ok. I will have to look more closely later tonight. But regardless, the stock is rising after hours, and the option traders did it again. The stock is rising above my initial target of $55.20, and now it could be on to my second target of roughly $58. I laid it all in the premium article I wrote on December 17. Bullish Betting Suggest Micron Rises Following Results
Netflix (NFLX)
Netflix had a good day too. It seems competition isn’t hurting them too much. Yeah, I said the same thing last week – Rising Competition May Not Be Hurting Netflix at All– Free
$315 will now become support, with the next level of resistance likely coming around $335.
Tesla (TSLA)
Six months ago, the bears had everyone convinced nobody wanted a Tesla. Today the stock hit an all-time high. Amazing. I still think this one is going higher too. I talked about it more in this premium article today, and where I thought the stock was going. Tesla’s Stock May Continue Higher On Bullish Change In Trends
Nvidia (NVDA)
I guess Nvidia is just going to keep trending higher to $236. I was wrong, thinking it would fall to $198.
Facebook (FB)
Of course, only I can write a story saying Facebook’s stock is going to fall, and then it goes up. I hate it when that happens. But there is still a chance I can be proven right. The stock failed today at resistance at $203. As long as it stays below $203, I have a chance. Facebook’s Shares May Plunge Even Further
I think that’s enough for today
-Mike
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.