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.
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July 24 – Stock mentions: SPY, NFLX, FB, AMD, INTC, TSLA
Michael Kramer and the clients of Mott Capital own TSLA and NFLX
S&P 500 (SPY)
Very quietly the S&P 500 managed to close at a record high of 3,019.56, up almost 50 basis points. It is looking more and more like the S&P 500 is heading to 3,055.
The S&P 500 confirmed yesterday’s break out at the start of the session, testing the downtrend. The market then proceeded to bounce and grind higher all day, taking out the previous high around 3013. In my premium video, I noted Higher Highs For The S&P 500 are likely on the way.
ECB Vs. FED
I think it is essential to remember that the ECB meeting is tomorrow morning and what happens at that meeting will very much impact what happens when the Fed meets next week. Based on trends in the yields and the dollar, the odds for a 50 bps cut by the Fed next week are rising in my opinion. At first, I didn’t think this was likely, but it has become more apparent to me that the market is now pricing in action first by the ECB. Should the ECB the Fed will be forced to be more aggressive. I talked about it more in yesterday commentary: It Is A Big Week For The Markets
I hope to have a better handle on things after tomorrow.
Netflix finally went up. The only problem is that the stock failed at resistance at $320. It is too early to say if the trend has changed.
Facebook is rising after reporting better than expected top and bottom-line results. It seems the news of the Anti-Trust investigation starting in June took some air out of stock. The stock reached an after hour high of $216.50 but has settled a bit lower now around $207. The company spoke of decelerating revenue growth on the call, but I need to dig in a bit more on this.
The results haven’t changed the technical outlook at this point. Support is still around $203, and resistance at $219
Intel traded above resistance at $52.50 today, and expectations are building for the company to post better than expected results, especially given all the positive comments from the sector. The stock may find itself working to fill the gap up to $57.25.
AMD continues to flirt with a break out at $34.50. I noted today I think it can break out, AMD Nears Break Out. Potentially setting up a move higher to $36.20
Tesla reported earnings that fell short of estimates. The stock is falling following the news, to $240. Gross margins came in a bit lite, but other things appear on track. More tomorrow after the call.
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