June 13 – Stock Mentions: IWM, SPY, AVGO, TSLA, AMD, DIS, FB
Michael Kramer and the clients of Mott Capital own TSLA and DIS
Russell 2000 (IWM)
It was a pretty solid day all around for the market. The big mover on June 13 was the Russell 2000, rising about 1%. We highlighted the potential for the breakout yesterday, and that is what we got on June 13. The trend in the Russell appears to be reasonably strong, and it looks as if a rising triangle is forming, and that could result in another potential break out, that could put the index on its way to 1,565.
S&P 500 (SPY)
The S&P 500 also had a nice pop on June 13 rising by roughly 40 bps. The only problem here is that the index is struggling around the 2,895. So I’m not entirely sure that we can call this a breakout. It could merely be a case of me drawing the chart out incorrectly.
In my view, we should give this one more day to develop and see if the index can get over 2,895 tomorrow. We can take it from there.
If the market does rise tomorrow, it’s going to have to do it without the help of Broadcom or the Semis. AVGO beat on the bottom but missed on the top. However, it also lowered its full-year outlook. The company noted it sees a broad-based slowing in the demand environment, driven by geopolitical uncertainties and an export restriction on a critical customer. The export restriction customer is Huawei. So if you want to look at the bright side of this, there already several companies that preannounced the Huawei impact. However, AVGO is down about 6%
I will have to read the conference call later tonight or tomorrow to see what else I can get out of it.
In the meantime, there is some reliable support at $260.
Tesla managed to rebound some today. I saw some bullish options betting in TSLA recently, that goes along with my bullish view. I wrote up a premium article today in more detail: Tesla Continues To See Bullish Trends. I still think the TSLA heads over $225 to $250.
AMD was already showing signs of weakness today after cautious comments from Oppenheimer. Layer on the Broadcom weakness and AMD looks poised to fall below support at $31.40 and could be on its way to $29.40
Disney had a big day after Morgan Stanley boosted its target to $160 from $135. DIS can rise to around $143 before hitting its next resistance level. I still think DIS is heading to $175. I did a video on this very topic on April 16 – Why Disney May Rise To $175.
Facebook looks like it may getting ready for its next leg lower. The more I read about FB the more I don’t like it. I think it could test $166 again.
That’s it, I’m super tired tonight.
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