Subscribe to The Free Market Chronicle and join the 2,712 subscribers getting it for FREE!
[widget id=”text-23″]
Stock Market Volatility May Soon Fade Away
I wrote in the midday commentary that for the morning rally to have any legs the S&P 500 need to rise above 2,610 and the XLY to rise above $99.40, and we got both going into the close, with the S&P 500 closing at 2,614, and the XLY closing at $99.68.
[widget id=”text-19″]
The big breakout came in the final hour of the day, as sentiment changed when Bloomberg reported the White House isn’t taking steps to take action against Amazon, the market started ripping higher. The S&P 500 passed the crucial first test, rising above a downtrend and support which converged at 2,600. The next test comes at 2,633, but first, the S&P 500 will need to stay above 2,600.
[widget id=”text-16″]
Technology
Unlike last week, I am not getting duped by the market again, until I get a confirmation breakout in the Technology ETF, XLK. That breakout has not occurred yet, and if it should come tomorrow a rise above $65.50 will be needed.
Facebook tested the lows of last week, held, and rebounded.
Alphabet shares continue to hold the $1,000 level. Did shares breakout again today, or do I have to redraw my line?
Tesla
Tesla reported good delivery numbers today and got pretty close to that guidance target, much better than the bears had been hoping for. But I think the critical piece is that company is still saying it will not need to raise any capital this year. Well see about that, part, but for now, the stock could move back into the $300’s.
[widget id=”wordads_sidebar_widget-41″]
VIX
The VIX continues to move lower, and I’m beginning to think the reason why it hasn’t elevated to higher levels, for the most, the traders do not believe this volatility will last.
S&P 500 put volume hasn’t been all that elevated, in fact, it appears relatively in line with the past year, except for the one spike in February.
SPX Put Volume data by YCharts
The put to call ratio in the S&P 500, isn’t even high or outside of the what appears to be normal levels over the past year.
SPX Put/Call Ratio data by YCharts
It would suggest that all this craziness something that may be coming to any relatively soon. Tomorrow will give us a good clue as to whether that is the case or not.
Good Luck
-Mike
[widget id=”wordads_sidebar_widget-41″]
[widget id=”text-22″]
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:
What Is Going On With The Stock Market! It Is Insanity!
Where Does The Stock Market Go From Here
Free Articles Written By Mike:
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 2,712 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, GOOGL, 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.
© 2018 Mott Capital Management, LLC. Use, publication or reproduction in any media prohibited without the permission of the copyright holder.
Tags: #sp500 #tech #technology #facebook #google #netflix #vix #tesla