Nvidia, Micron, Apple, Amazon Showing Serious Cracks
Despite all the market turmoil, for which the reason seems to change on a daily basis, the S&P 500 is only down 1.38 percent on the year. I think that is the more important thing to focus on, and not the daily swings of 2 percent. Becuase at the end of the day despite all the stock market volatility, the stock market has virtually gone nowhere!
So while the reasons for the market going lower seem to change, some things have held constant, until today, and those minor changes have caught my attention.
First, the XLK breakout from the other day is being severely tested, with the downtrend now in play again.
The IBB is now below the February lows.
The XLF failed in a big way at resistance, around $28.
Nvidia broke support at $218 and closed around $214.50, and for the first time in all the chaos shares look at serious risk of falling towards $200.
Micron opened lower and retook $49.75, and like Nvidia, it gave way and closed well below support, and that is a bad sign too, with the potential for a further decline towards $46.75.
Amazon failed twice at resistance now around $1440 level, and I continue to think this one trades lower.
Apple closed below support at $169.
Obviously, the market is far more significant than these four stocks, and at this point, it seems hard to predict what the potential next hurdle or hiccup comes in the markets way over the next week. It seems that everytime a bit of positive momentum builds it is meet with some obstacle that sucks the energy out of it. From “trade wars,” to Amazon and the Post office, the FED, inflations, and yields. The stock market thus far this year seems like a moving target, and for the first time in about three years, I am having a hard time getting the general trend right, and that is bothering me.
But, the good news comes next Friday when the narrative will change to earnings. The only left to be to determined, will earnings push stock prices higher or will it become just one more thing the market can add to list of worries.
More this weekend.
Mott Capital’s Reading The Markets – An In-depth Global Macro Stock Market Commentary – In Video Format – See How Michael Dissects The Markets
Free Articles Written By Mike:
Join our 2,476 Daily Subscribers And Get This Commentary In Your E-Mail! Subscribe
[vc_tweetmeme type=”follow” follow_user=”michaelmottcm” show_followers_count=”true” large_button=”true”]
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.
© 2018 Mott Capital Management, LLC. Use, publication or reproduction in any media prohibited without the permission of the copyright holder.
Tags: #sp500 #tech #technology #tesla #micron #nvidia #jobs #bls #sp500 #xlk