11/26/2019

STOCKS: ACAD, DIS, NFLX, MU, GILD, SQ

MACRO: SPY 

MICHAEL KRAMER AND THE CLIENTS OF MOTT CAPITAL OWN ACAD, DIS, NFLX

US Markets

• S&P 500 Futures -1.25 points
• US 10-Year 1.75%
• Dollar Index 98.32
• VIX 11.90
• Oil 58.11

International Markets

• Japan +0.35%
• HK -0.29%
• China +0.03%
• SK -0.10%
• Germany -0.19%
• UK +0.13%

MACRO

Stocks are pointing to a slightly lower opening here in the US after a record-setting day on November 25. Markets overseas were mixed, despite some commentary that the US and China are finalizing aspects on phase 1 of the trade deal. In my view, the market doesn’t care when and if a trade deal ever gets signed, so long as there are new tariffs or existing tariffs do not rise. 

The way to potentially think about tariffs is that they are simply a tax and have a one-time effect. We will see the impact of tariffs wear off, as earnings normalize from their effect throughout 2020. It is likely the reason why the market seems to be immune or disregard trade headlines at this point. 

S&P 500 (SPY)

The S&P 500 has been in a very solid trading channel since the beginning of November, and there is little to no sign of that changing at the moment. It continues to suggest to me that the S&P 500 is on its way to 3,150. 

STOCKS

SQUARE (SQ)

Square is rising some this morning, and if IT can get above $70 today, it stands a good chance to fill the gap up to $83.

DISNEY (DIS)

There are reports that Disney is adding a million new subscribers a day to its streaming service. The stock is rising out or a pennant, and if it can clear $150.50, then perhaps it pushes towards $157.

MICRON (MU)

Today is likely to be a critical day for Micron as a downtrend and uptrend converge. It will tell us which way shares go next.

NETFLIX (NFLX)

Netflix is nearing resistance at $320 and is now back to post-earnings highs. $320 is the big level to watch.

GILEAD (GILD) 

Gilead looks like it it is attempting to break free of a downtrend that has been in place since September 2017. It is a big test for the stock. A push above $68 signals a potential move higher $72. There is a clear shift in the RSI from negative to positive, and this is a stock that I think maybe heading higher and not lower. I will continue to watch this one. – Premium content – How I Use The RSI To Find Turning Points In Stocks

 

ACADIA (ACAD)

Acadia is pointing to a flat opening, but I can’t imagine it stays that way. The data from their schizophrenia study was positive, and when digging deeper into the results, the 34mg dosing had a clear statistical significance. The stock was upgraded by Cantor today with a $70 price target up from $63, plus it got positive commentary from a couple of other analysts. Watch for a push to $52.

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