Home ยป 14 Monster Stock Market Predictions For The Week of January 14

The week of January 14 will the kick-off of earnings season for the stock market with the banks and Netflix.

14 Monster Stock Market Predictions For The Week of January 14

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Michael Kramer and the clients of Mott Capital own Acadia, Apple, Mastercard, Netflix

The of week of January 14 kicks off earnings seasons, with Citigroup, Bank of America, JP Morgan, and Netflix all reporting. We also get the producer price index the morning of January 15, followed by aย parliamentaryย vote on Brexit later in the day.ย It makes for what could an exciting start of the week.

Banks

The banks find themselves in an unenviable position with their stock prices well of their 2018 highs. In fact, JP Morgan is the only bank that isn’t down by more than 20%. The banks certainly did not have a healthy housing market in the fourth quarter to work with,ย  nor did they have rising rates. About the only thing that went in favor of the banks was the financialย market volatility. It makes for what could be a rocky earnings seasons.
JPM Chart

JPM data by YCharts

Earnings estimatesย for the banks, most notablyย Goldman and Morgan Stanley, have fallen sharply. It seems as if it will not be too hard for the banks to the surprise investors and deliver better than expected results.

JPM EPS Estimates for Current Quarter Chart

JPM EPS Estimates for Current Quarter data by YCharts

Citigroup (C)

Citigroup’s stock looks like it could rally a bit further, with a technical gap to fill up at $61. Just be mindfulย of the downtrend, should the bank fail for the third time at the downtrend, it would be very bad news.

citigroup

Bank of America (BAC)

Bank of America is on the cusp of breaking out should it rise above $26. If that happens, the stock could rise to around $28.

bac

JP Morgan (JPM)

JP Morgan’s chart doesn’t look great after itย failed at resistance around $102.5. The stock could be heading lower again towards $95.

JPmorgan

Goldman Sachs (GS)

Goldman could be on its way to $183. I know it is not saying much, but is there anything positive going Goldman’s way to change this trend?

goldman, gs

Morgan Stanley (MS)

I can’t say that I have ever seen a chart like Morgan Stanley before. Look at how firm the stock has held its downtrend, and for so long andย consistently. The chart still looks horrible.

morgan stanley , ms

Netflix (NFLX)

Netflix is the total opposite of the banks with expectations for the stock rising sharply over the past few weeks. For this, we need to only look at the stock price. The stock is up 26% this year on no noteworthy news, just rising expectations.ย  For now, the next level of resistance is $355, but that could quickly change by Thursday. This stock shouldย be considerย day-to-day.ย netflix, nflx

Google trends suggestย subscriber growth is extremelyย strong.

Apple (AAPL)

Apple’s stock will likely continue to struggle this week. The shares managed to refill a gap up to $155, and failed 2 times. It is hard to imagine that the stock can find enough positive momentum this week to get to rise above $155. Earnings are still a few weeks off and I think until investors get some more clarity on how the rest of the year may shape up, $155, is likely to stay firm resistance.

apple, aapl

Amazon (AMZN)

Amazon’s stock has stalled out after the news of Jeff Bezos’ divorce. It isn’t clear what impact it may have on the stock or not, but it is on top of investors minds. We can see in the chart how the stock has stopped in its tracks.

$1,620 is support and a break below that price, which seems likely, takes it down to $1520.

amazon, amzn

Micron (MU)

Micron is the cusp of a potentially big break out should it rise above $36. The stock could be on its way to $40.

micron, mu

Nvidia (NVDA)

It would seem there is a level of resistance in Nvidia’s stock around $150, which I hadn’t notice before. If the stocks can climb over $151 it can probably go on to rise to $160. If not, than it likely heading back to $139.

nvidia, nvda

Roku

Roku is probably heading back towards $34.

roku

Acadia (ACAD)

Acadia managed to finish the week above $21 and may be heading towards $24.

acadia, acad

Square (SQ)

Square is consolidating nicely around $65.50, and I still think it can head towards $75.

square, sq

Mastercard (MA)

Mastercard could be on its way to $204.

mastercard, ma

That is it, good luck this week!

-Mike

Photo from Flickr

Mott Capital Management, LLCย 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.ย Upon request, the advisor will provide a list of all recommendations made during the past twelve months. Past performance is not indicative of futureย results.

 

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