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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MICHAEL KRAMER AND THE CLIENTS OF MOTT CAPITAL OWN SHARES OF NFLX, ACAD
Stocks took off today with the S&P 500 rising over 2.5% and the NASDAQ rising 3%. All it took was four little words; rates are near neutral. That’s it, and just like magic, stocks took off. Risk-on was back and sectors like technology and biotech were off to the races. Powell was listening when the market was screaming.
More tomorrow on this Fed stuff. I want a day to think about it more.
I noted today in the StocksTwits Chat room, (where I post thoughts and things I watch all day), earlier today that it is looking more and more like a double bottom -a significant reversal pattern has formed in the S&P 500. Officially, we should wait until the S&P 500 rises above 2,820 for confirmation, but the RSI is suggesting to me we continue to rise. In fact, should the RSI rise above 60, then it would suggest a new bull trend in the broader market is forming, and we could even see new highs in the coming months. Yes, you read that right! But let’s not get ahead of ourselves, yet.
The one area of concern I have for now is around 2,750, that may be the one place that holds the index back. If we can clear the downtrend, we have room to run.
A similar pattern is forming in the Russell 2000 as we noted earlier this week.
The Biotech ETF (XBI) is also breaking out. I noted yesterday in a premium article that Biotech’s were nearing a breakout and that sentiment was shifting.
The chips stocks are also breaking a long-term trend line, and I think this is very positive for the broader market. A rise above $96.50 pushes the ETF on to $101.
Amazon cleared a bunch of hurdles today, and I think we can see the stock go on to rise to around $1,760.
Netflix managed to close right around resistance at $285, but the more important news is that the stock has now pulled away from a downtrend. A rise above $285, send the stock to $300.
Microsoft broke its downtrend, and now it is poised to increase to $116.
Intel has had a very tough time rising above $49, but if it can manage to rise above $49, it has room to go $52.50. I wrote a premium article this morning on some bullish options bets I had noticed.
Acadia was up a stunning 21% today. I know it sounds fantastic but don’t get to excited because the stock is still at $20.5. But the good news, as I noted this morning was the deal went well and oversubscribed. I think if the management team did this as a reset on the stock it appeared to work well. I have been saying it for a while I continue to believe this one goes higher.
Exelixis broke out and is heading to $20.40, as we had noted on Sunday. We could be looking at $22 if the stock clear $20.40.
Nvidia got over $160 today, barely I will add. So, at best thing may make it to $170.
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 results.
SP500, Fed, amazon, netflix, acadia, chips, biotech, nvidia, intel, microsoft