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!
Subscribe to the Monster Stock Market Commentary and join the 1,839 subscribers getting it for FREE every day!
Something Has Changed In The S&P 500
[vc_row css_animation=”” row_type=”row” use_row_as_full_screen_section=”no” type=”full_width” angled_section=”no” text_align=”left” background_image_as_pattern=”without_pattern”][vc_column][vc_tweetmeme type=”follow” follow_user=”michaelmottcm” show_followers_count=”true” large_button=”true”][/vc_column][/vc_row] Get This In Your E-Mail Subscribe
Some fascinating things have developed in the markets over the past couple of days. The pattern of gapping lower, filling it, and moving higher has decisively changed. In fact, we noted it just a couple of weeks ago. In fact, our discussion was even picked up in a MarketWatch.com story.
The chart below shows we have had successive days, where the S&P 500 has gapped lower but has not been able to refill that gap. The rebound in the index has only taken the S&P 500 back to the level of the initial opening level.
We are seeing the same thing occurring in the technology sector using the XLK has a proxy.
It would suggest to me there are just not enough buyers in the market, presently to lift the index above the opening level. Perhaps the machines have been reprogramed?
Sign-up for our premium content “Reading The Markets” and a get Two Week Free Trial Period
You can find it on the Seeking Alpha Market Place –
Premium Content: Benefits include the ability to reach out to Mike with questions through a chat room, direct message, or comments.
We will respond to questions in short order and will respond to questions with full-post or video segment, just not one or two-word answers.
Just $40 per Month
Looking at the discretionary ETF, one that has recently broken out, the difference becomes apparent. The XLY gapped lower, but the buyers came into the market to completely refill it in the morning and take shares above and beyond by the end of the day.
I believe still that S&P 500, and the technology sector is likely to continue to feel pressure, and continue to drift lower over the next couple of weeks, as we have previously noted.
Tesla has it big semi truck event on Thursday night, one that should be interesting. Tesla bulls were able to rally shares yesterday, and despite losses in today’s trading the stock managed to hold support at $310, another positive sign for a bottom getting put in place.
That it for today.
Free Articles Written By Mike:
Biotech Celgene Could Rebound By More Than 15%
We offer a lot of great commentaries all week talking about the major and relevant market events. Be sure to subscribe to get this all and of all free commentaries sent directly to your inbox or follow us on Twitter.
[vc_row css_animation=”” row_type=”row” use_row_as_full_screen_section=”no” type=”full_width” angled_section=”no” text_align=”left” background_image_as_pattern=”without_pattern”][vc_column][vc_tweetmeme type=”follow” follow_user=”michaelmottcm” show_followers_count=”true” large_button=”true”][/vc_column][/vc_row]
Michael Kramer owns puts in the XLK
Michael Kramer and the Clients of Mott Capital owns shares of TSLA
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.
© 2017 Mott Capital Management, LLC. Use, publication or reproduction in any media prohibited without the permission of the copyright holder.
$xlk, $spy, $xly, $tsla, #sp500, #tesla, #xlk, #xly, #technology, #stocks