Stocks Are Gapping Higher Again, Just Remember To Mind The Gap

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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January 22, 2020

Stocks – NFLX, TSLA, JD, MU, BA

Macro – SPY

MICHAEL KRAMER AND THE CLIENTS OF MOTT CAPITAL OWN NFLX AND TSLA

Stocks are gapping higher once again, following what was a robust overnight session in Asia. Interestingly, Europe is not having a great trading session, with markets essential flat in Germany and the UK.

S&P 500 (SPY)

Perhaps my crystal is fuzzy, I’m not sure, but recently, I feel more confused by the markets than at points in the past. Maybe it is because of instincts suggests that the market is overextended and needs to cool. However, it has been incredibly resilient. Again, it isn’t that I expect some massive correction, 2 to 3% would suffice.

Anyway, resistance for the S&P futures likely comes around 3,364, and support is 3,310.  My one thought of intelligence today, as it says when you get on the train, mind the gap.

S&P 500, spy

Netflix (NFLX) 

Netflix is up this morning and trading at $345. If the stock can hold these gains, it would be a big positive. But as we know, the $340 region has been incredibly difficult for the equity. So, what I find most ironic about Netflix is how they host their conference call on YouTube. Lol. Hey, I happen to own both companies, but I find it strange. Shows you how much Netflix views YouTube as a competitor, which it isn’t.

Anyway, I continue to think the stock works its way towards $360; my view hasn’t changed. I also think the results show that the company is on the right path regardless of competition.

netflix, nflx

 

JD.com (JD)

Yesterday I had a slight typo in my write-up saying a drop below $37.10 would send the stock lower to $38.40. Well, that makes no sense, and I meant to say $39.10. The good news is that the stock held support yesterday at $39.10. Today, it is bouncing higher and is rising above resistance at $40.15, and I think it could be on its way to $42.85.

jd

Micron (MU) 

Micron is starting to break away from resistance at $58.65 and appears t could be heading higher towards $61.40.

MICRON, mu

Tesla (TSLA) 

Tesla is rising after Wedbush raised its price to target to $550, with a bull case scenario of $900. If I had to throw a dart at a board, I’d say that $600 is the next level of resistance to watch for.

tesla, tsla

Boeing (BA) 

Boeing is below $317, and that has been a significant level support for the stock, and I think it is problematic for the stock. That region is now likely to act as a healthy level of resistance for the stock.

boeing, ba

Have a fun one!

-Mike

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.     

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