Stock Market Madness, But Don’t Get Too Excited Yet!

MICHAEL KRAMER AND THE CLIENTS OF MOTT CAPITAL OWN SHARES OF AAPL, ACAD, ALKS, NFLX, TSLA

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As of 3:40 PM

So much fun! Don’t you love these crazy trading days! It is enough to pull your hair out! Oh, the Drama!

“THE STOCK MARKET IS DOWN TODAY DUE TO THE ASIAN SELL-OFF LAST NIGHT!” – Yeah ok. Shanghai was down like 2%, who cares it is down like 32% since its January highs!  The index stopped rising exactly where it was supposed to at 2,654. What I find even more amusing. The index was up 4% on Monday, but where was the big 4% rally in the US on Monday! Right never happened.  STUPID!

Yields

Look at yields on the 10-Year come down to support at 3.11%. It is holding so far.  I still see yields falling to 2.95ish% over the next couple of weeks.  Do forget we get GDP on Friday and that means the PCE too.

S&P 500 (SP500, SPX)

The S&P 500 fell right into the “ZONE of No RETURN,” man I wish I could write with sound effect, but it managed to stop falling. Now is it playing a game of fill the gap with the algo’s rising back to 2,752.  Be careful here!  Because if we fail at 2,752, guess which way we go? Yep down.  Be careful. Seriously. Watch for the break out above the downtrend. At this point, it looks like we are failing to break out.

Amazon (AMZN)

After looking bit more closely, I decided to move support up to $1760 from $1740. Anyway, you can see that we fell below it and now we are in the middle of testing that support/resistance. But the significant presence in the chart is downtrend, and that has been a big problem for the stock many times.  Until that trend is broken, this stock is going lower.

Netflix (NFLX)

Netflix retested the lows of October 11, and now the stock is actually up on the day. How about that! I’m hoping that it is a huge positive sign of development for the stock and the broader market. If the stock can manage to stay above resistance at $333, I think see can we a return to $342 with more to come. But let’s take it one step at a time.

Tesla (TSLA)

Look at Tesla just go. Man. Anyone who follows Tesla knows they usually report on the 1st of the month. So that means they would have likely reported on November 1. Well, that is when you are losing tons of money. You’d have to think they moved the earnings date up by over a week for a reason right? Tesla announced the earnings date last night for tomorrow.  The shorts got blindsided, and now they are scared.  If the stock gets over $301, we are talking about a potential run back to $350, and I think it could happen fast.

Additionally, this stock is solid as a rock at $251. Solid.

Apple (AAPL)

Talking about strong levels, Apple anyone?  I mean really, this big buyer doesn’t even try to let it come in.  I mean what the F***!  Whoever is buying the stock is taking a stand with conviction.  Guys this is Apple. This a $1 trillion market cap company. We are talking about serious money here.

Nvidia (NVDA)

Someone on social media was giving me a tough time about how I am always wrong on Nvidia? Really how you feeling’ now? $217.  BAM!

BofA (BAC)

Didn’t I say last night BofA was going to $26? Intraday low $26.11. Not too bad.

Acadia (ACAD)

Acadia has been holding support at $21.50 very well. I think it may be on its way to $27.

Alkermes (ALKS)

Alkermes found a very nice bounce off the lower end of the wedge. Next week is the big week, with the FDA  Panel on November 1 for the company’s depression drug ‘5461. The Briefing Docs come out about two days before. The falling wedge would suggest a bullish reversal coming. But I find this wedge formation to be tricky.

That’s it. Sorry for the early write-up, but I have stuff to do with the kids tonight.

-Mike

Photo credit via Flickr

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.

Stocks, sp500, spx, amazon, tesla, acadia, alkermes, netflix, nvidia, bac, apple, stock market