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December 6, 2019
Stock: NFLX, BABA, TSLA, AAPL, BIIB
Macro – SPY, XBI
US Markets
- S&P 500 +6.5 points
- US 10-Year 1.79%
- Dollar Index 97.46
- Oil $58.25
- VIX 14.30
International
- Japan +0.23%
- SK +1.02%
- HK +1.07%
- China +0.43%
- Germany +0.18%
- UK +0.82%
MICHAEL KRAMER AND THE CLIENTS OF MOTT CAPITAL OWN NFLX, AAPL, TSLA
S&P 500 (SPY)
Stocks are pointing to a higher opening on December 6 following better than expected jobs data. The reading for November came in 266,000 versus estimates of 180,000. The unemployment rate fell to 3.5% versus forecasts of 3.6%; wages grew by 3.1% versus estimates of 3.0%. Private payroll rose by 254,000 versus estimates of 168,000.
Overall, upside resistance continues to live around 3,140 in the S&P 500. The jobs data suggest there is still strong growth in the US economy, and with the Fed basically out of the way, the market doesn’t have to worry about an overheating economy, because inflation is low. Hear more in the morning commentary- Morning Commentary- 12.6.19 – Jobs Suggest Economy Reaccerlating
Biotech (XBI)
I will be watching the biotech XBI today pretty closely. The ETF has been on fire in recent days, but yesterday it was notable weaker following pressure within the group. $93.50 had been resistance, and I was trying to give myself some room for error, I had thought a rise about $94.50 would suggest a breakout and push to $98. However, it is looking like the market is choosing to prove me wrong. Now the ETF is back at support at $93.50, and it appears to be breaking the uptrend. I worry that it is more likely the ETF falls to $91.50 now.
Alibaba (BABA)
Alibaba is approaching resistance at $201.50, and a break out sends the stock back to $210, a failure back to $188, and a potential double top.
Tesla (TSLA)
Tesla is rising some this morning after Morgan Stanley raised its bull case scenario for the stock to $500 from $440. The level around $330 has acted as support in recent days, and I think the stock works higher to fill the gap up at $353.
Biogen (BIIB)
Biogen continues to struggle and is unable to get above $308. But I think the RSI is high and needs to fall some more back to the trend. I think the stock pushes lower back towards $280.
Apple (AAPL)
I will be watching Apple today because the stock may be getting ready for its next push higher. The RSI is trending higher, and a move above $268 signals the stock has even further to climb perhaps to $276. Premium video – Subscriber Mailbag- Finding Entry Points With The RSI
Netflix (NFLX)
Netflix may be turning higher. I noted yesterday in the mid-day update that the stock was finding meaningful support at $300, and that a falling wedge pattern was forming. I think that it means shares can move back to $315. Midday update content – Waiting On Jobs Data
Have a good one!
-Mike
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This report contains independent commentary to be used for informational and educational purposes only. Michael Kramer is a member and investment adviser representative with Mott Capital Management. Mr. Kramer is not affiliated with this company and does not serve on the board of any related company that issued this stock. All opinions and analyses presented by Michael Kramer in this analysis or market report are solely Michael Kramer’s views. Readers should not treat any opinion, viewpoint, or prediction expressed by Michael Kramer as a specific solicitation or recommendation to buy or sell a particular security or follow a particular strategy. Michael Kramer’s analyses are based upon information and independent research that he considers reliable, but neither Michael Kramer nor Mott Capital Management guarantees its completeness or accuracy, and it should not be relied upon as such. Michael Kramer is not under any obligation to update or correct any information presented in his analyses. Mr. Kramer’s statements, guidance, and opinions are subject to change without notice. Past performance is not indicative of future results. Neither Michael Kramer nor Mott Capital Management guarantees any specific outcome or profit. You should be aware of the real risk of loss in following any strategy or investment commentary presented in this analysis. Strategies or investments discussed may fluctuate in price or value. Investments or strategies mentioned in this analysis may not be suitable for you. This material does not consider your particular investment objectives, financial situation, or needs and is not intended as a recommendation appropriate for you. You must make an independent decision regarding investments or strategies in this analysis. Upon request, the advisor will provide a list of all recommendations made during the past twelve months. Before acting on information in this analysis, you should consider whether it is suitable for your circumstances and strongly consider seeking advice from your own financial or investment adviser to determine the suitability of any investment.
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