Home » Stock Market Rally Continues, Jobs Report May Be Non-Event

Stock Market Rally Continues, Jobs Report May Be Non-Event


Stock Market Rally Continues, Jobs Report May Be Non-Event

In the midday commentary, I noted that S&P 500 was running into some resistance around 2,675, and that level stood firm in the afternoon session. The job report tomorrow will prove critical as to whether the S&P 500 advances further, or suffer a setback.

© 2018 Mott Capital Management, LLC.  Use, publication or reproduction in any media prohibited without the permission of the copyright holder.

Join our 901 Daily Subscribers And Get This FREE Commentary In Your E-Mail! 

spx

Jobs Reports

The job numbers have been trend higher on the BLS, with y/y gains accelerating, and I do not expect that to change in tomorrow’s report. In fact, the strong ADP results support my belief that we will continue to see meaningful job acceleration.

In fact, I continue to believe we can see meaningful job creation, without the unemployment rate falling, as the U6 number is still rather high, historically.

The labor participation continues to be extremely low, and as workers continue to come back to the labor market, I expect that participation rate to continue to rise. Remember the U3 “headline” measure of unemployment is a lousy indicator to measure true unemployment, as it counts those recently unemploy and actively looking for work. Not those that gave up looking 6-12 months ago.

It is also the reason, why wage inflation is likely to stay in check when the reading comes out. I would not be surprised to see it lower this coming month than last.

Mott Capital Management, Michael Kramer

Mott Capital’s Reading The Markets

An In-depth Global Macro Premium Stock Market Commentary

In Video Format- See How Michael Dissects The Markets

Premium Subscription Based Membership

Just $200 Per Year – Get Your Free 2 Week Trial

Technology

We can see that the technology ETF XLK failed multiple times around $66, we are going to want to see the technology ETF break above that level of resistance.

technology


Tesla

Tesla managed to get above the $303.5 level as I noted earlier in the day, and again that is a positive for the stock. The next big event for investors to worry about will be the burn rate when the company reports results sometime at the end of April or beginning of May.

tesla


Nvidia

I know the Citron tweeted today about Nvidia going sub $200, but for now, the market seems to disagree. $218 has been like a rock through a lot of market turmoil, and I’d be surprised if $218 cracks, something fundamentally would need to change, such as an earnings miss or poor guidance. But right now, I’m not seeing a move below $200 happening.

nvda

Advertisements

Micron

It is the same thing with Micron, with the Sell rating by UBS. The area around $49.75 still seems stable, and it is going take more than a lone wolf downgrade to get this thing below that price.

micron

Qualcomm has seen some interesting option volume lately and could be pointing to a decline of 13 percent in the stock.

The opposite could be said with Netflix, as traders are betting shares rise over $320.

Good Luck Tomorrow

-Mike

Advertisements


Mott Capital’s Reading The Markets – An In-depth Global Macro Stock Market Commentary – In Video Format – See How Michael Dissects The Markets

Just $200 Per Year – Get Your Free 2 Week Trial

Recent Videos:

Stock Market Rallies, Is It For Real?

Today’s Rally Looks Fragile

What Is Going On With The Stock Market! It Is Insanity!

Put On Your Rally Hats

The Bottom Is Close

Where Does The Stock Market Go From Here

Free Articles Written By Mike:

Qualcomm Options Traders Looking for 13% Decline

Netflix Options Traders Are Looking for a Big Rebound

Why the VIX Index Is a Bullish Sign for Stocks

Apple Stock Faces 10% Short-Term Pullback

4 Consumer Stocks That May Plunge to New Lows

Broadcom’s Battered Stock Poised for 12% Rebound

Boeing’s Stock Seen Falling Into Bear Market

IBM Traders See Stock Plunging 20%

3 Hot Biotech Stocks Facing Sharp Declines

Under Armour’s Stock Still Has Further to Fall

Intel Traders Face Big Losses As Chipmaker’s Stock Drops

Why Facebook Stock May Rebound By 25%

Amazon’s Stock May Plunge 10% Further

Tech Stocks’ Growth Engine Faces a Big Slowdown

3 Big Biotech Stocks Poised for More Declines

Why Chip Stocks May Rebound to Record Highs

Take-Two Stock Seen Rising 20% on E-Sports Demand

Square’s Soaring Stock Is Due for a Correction

Nike’s Stock Bulls May Get Burned

Why AMD Options Traders Are Bearish Long Term

Improving Earnings Will Push Stock Prices Higher

Join our 901 Daily Subscribers And Get This Commentary In Your E-Mail! Subscribe

-OR-

[vc_tweetmeme type=”follow” follow_user=”michaelmottcm” show_followers_count=”true” large_button=”true”]

Michael Kramer and the clients of Mott Capital own NFLX, TSLA

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.

© 2018 Mott Capital Management, LLC.  Use, publication or reproduction in any media prohibited without the permission of the copyright holder.

Tags: #sp500 #tech #technology #tesla #micron  #nvidia #jobs #bls #sp500 #xlk