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.
Otherwise, enjoy the column!
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Stocks: SPLK, BABA, BIIB, ROKU
MICHAEL KRAMER AND CLIENTS OF MOTT CAPITAL OWN SPLK
- S&P 500 Futures +4.5 points
- US 10-Year 1.85%
- VIX 12.94
- Dollar Index 98.30
- Oil $56.43
- Japan +1.01%
- China +0.13%
- HK +0.37%
- SK +0.19%
- Germany -0.30%
- UK -0.08%
Stocks are pointing to a higher for the S&P 500 after some manufacturing data continues to show improvement. Germany Manufacturing PMI came in at 44.1 versus estimates for 43.8, and up from last month’s 42.1. Also, the China Caixin PMI came in 51.8 versus forecasts for 51.4, and up from 51.7 last month. Meanwhile, the official PMI came in 50.2.
We will get our own PMI readings today, with the ISM reading at 10 AM. The reading is expected to rebound to 49.4 from 48.3 last month. You can hear more here, on in SA Market Place Reading The Markets – MORNING COMMENTARY 12.2.19
S&P 500 (SPY)
The futures have been drifting lower despite starting the day higher and based on the current levels, the cash market should open right around resistance at 3,150. If we can manage to get above 3150 today, then perhaps the next level of resistance would come around 3,200. But until the index can break above that region of resistance, I think we continue to hang in a holding pattern and trade sideways, until reaching the lower side of the trading channel.
Splunk is catching a big today after receiving an upgrade from Goldman to buy from neutral while raising its price target to $180 from $147. The stock broke out of a significant level of consolidation between $108 to $141. The $141 level should offer plenty of support going forward, and the stock could be heading to $161.
Roku was downgraded to underweight from equal-weight at Morgan Stanley, and its price target was raised to $110 from $100. The RSI continues to trend lower, which continues to suggest to me longer-term the stock is heading lower. A break below $150, starting pushing it to $135.
Biogen was downgraded to underperform from neutral with a $250 price target at Baird. The stock has failed on three occasions at a price of around $310 three times and now could be set up to retest support $280.
Alibaba is pointing a to lower opening today, shocker. I spoke about this over the weekend. The chart suggests the stock falls to around $188. Baba went out at 195 HKD.
Have a good one!
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.