Stocks and Sectors Breaking Out For The Week of May 14
Michael kramer and the clients of mott capital own shares of acad, dis, and googl
The week of May 14 will try to continue to build on last week’s strong performance. With earnings pretty much behind us now, investors can continue to digest the strong earnings seasons. Meanwhile, the latest inflation and wage data should also calm nerves over runaway inflation or a Fed that will need to be over aggressively, and allow for stocks to continue to rally this week.
The S&P 500 broke out last week, and the relative strength index also broke out, and I think we should continue to see the broader market continue to trend higher this week. I’m still looking for a rise to about 2,800 on the S&P 500 over the next couple of weeks.
We have seen Technology names breakout over the past week, and I think we see the consumer stocks finally breakout this week.
The XLY ETF is very close to breaking out, and the RSI also appears set to breakout, I think that happens this week.
As I have written previously, Amazon is close to breaking out, and I think that breakout can happen this week, as it sits right below resistance.
Home Depot is another one that already has broken out, and is reporting results on May 15. Analysts are looking for earnings for $2.05, on revenue of $25.2 billion. A return to $210 may be reach for later this week.
Disney is also likely heading higher, potentially back to $111.
Technology stocks have already broken out, and we are going to want to see a strong continuation this week. Nvidia is going to be the one to watch here. It has broken out, and the earnings results served as a retest of the breakout, and it held. Now we to see a follow-through higher.
Micron also broke out, and I think a rise to about $54 is in the works.
Alphabet is has been on a tear, I think that one continues, on towards $1150.
AMD has also broken out and a rise to $13.70 could be coming shortly.
Another group I will be watching are the biotechs, to see if they can build on Friday’s strength. The XBI appears to have broken out, and the RSI did as well. We could see a rise back to the highs around $96.
Nektar shares bounced right off support around $70, the key this week is if the stock can get back over $83.
Acadia may also be close to breaking out and a push back to $27 would sure be nice.
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