April 5, 2019
Michael Kramer and the clients of Mott own Acadia
- S&P 500 +4
- US 10-Year Yield 2.54%
- VIX 13.38
- Dollar Index 97.27
- China Shanghai – Closed
- Hong Kong HSI -0.17%
- Japan Nikkei +0.38%
- South Korea Kospi +0.14%
- German DAX -0.05%
- UK FTSE +0.16%
- BLS Job Report Actual +196k vs. Estimates +181k
- Brexit delay until June 30?
- Are China and the US getting closer to trade deal?
The good news is that the South Korea KOSPI continues to rise, and that is likely a positive sign for this exporter’s economy. The index is getting very close to having a pretty big move higher.
S&P 500 (SPY)
The story of the markets over the past two days has been consolidation. It appears that it is going to end today. Stocks are poised to break out once again and rise sharply. The S&P 500 seems to be nearing a pretty big break out, which could propel the index to 2,915. Here is my latest on Investing.com: The S&P 500 Could Rise To 3,200 In 2019 As Global Growth Returns
Russell 2000 (IWM)
The Russell 2000 continues to trend higher with a target of 1,593 coming.
The SMH semiconductor ETF looks as if it preparing to break out and move higher towards its all-time high of $114.60.
In yet another sign that perhaps global growth may be on the rise, FedEx shares have broken out rising above critical resistance at $184.50. It could result in stock rising to around $201.
McDonald’s price target increased today to $210 from $195 at Telsey. I still don’t understand this stock. I don’t think I ever will either. I wish all my companies could have the same performance of this stock. It amazes me how revenue can fall so sharply, but the shares continue to rise. Beats me.
Intel was downgraded today to market perform from outperform at Wells Fargo. Intel has come along way, and I still think it has further to climb testing the highs of last spring.
Boeing continues to rise, and the stock continues to move higher working to fill the gap up at $420.
AMD appears to be consolidating around $29.50 resistance and could be getting for another push higher towards $31.50
Acadia continues to consolidate at approximately $27, and a break out appears to be coming. We have said now for the past two weeks, but you can see the triangle is contracting. The RSI is still trending nicely higher; there is a giant gap to fill to around $31.50. All the signs are there.
Well to no surprise the 10-year yield is back to around 2.54%. I’m not sure that it gets through this time around. I think we need to at the very least retest those lows.
Good Luck today.
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.