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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DECEMBER 24, 2019
STOCKS: TSLA, AMD, UBER, SBUX, MU
MACRO: SPY
MICHAEL KRAMER AND THE CLIENTS OF MOTT CAPITAL OWN TSLA
It was an uneventful day on December 24, most certainly not like the one last year. I went back and read my blog post from that day, and times have changed, and the markets appear to be in precisely the opposite position.
S&P 500 (SPY)
But that doesn’t mean we will continue to rise in a straight line, and signs are forming, which suggests we could be ready to see a minor pullback of perhaps 2% over the final four days of the year.
The RSI on the S&P 500 is overbought at 75.5 again, and that number needs to come down some. Based on the trends in the RSI, I would think back to around 60.
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200-Day Moving Average
Meanwhile, the number of stocks in the S&P 500 trading above their 200-day moving average is at 81%, and that is the highest it has been since January 2018. Another sign of how far this market has come over a short period.
Additionally, the prior times the level got this high was in late August 2016 and March 2017. Both periods saw declines of about 3-5% that followed.
It suggest a pullback to around 3,175 to 3,200
Tesla (TSLA)
Tesla continues to rise, and at this point, logic would suggest the stock is getting overbought. But with Tesla, nothing is easy, and deciding if the stock can rise further is not easy. There have been no “leaked” emails yet about production and deliveries, either to consider.
The stock did something similar starting in December 2016 into June 201717. I have to think further on what happens from here regarding Tesla. I’m just not sure at this point.
AMD (AMD)
AMD also got up to our target of $46.80. This is also a stock that is due to pull back now, maybe back to $43. We can see the RSI failed to make a new, despite the price hitting a new high, a bearish divergence.
Uber (UBER)
It appears Uber may be setting up to take it’s next leg up to $33.13.
Starbucks (SBUX)
Starbucks appears to be getting ready to move higher towards $91.35
Micron (MU)
I noted today in a free article why Micron may be heading to around $58. Micron’s Stock Is Far From Peaking
Enjoy the time off and Happy Holidays!
-mike
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