Stocks Are Testing Resistance On February 19, Looking For New Highs
Stocks are rising around the globe on February 19 and looking to move back to their record highs as they challenge critical resistance

Stocks Are Testing Resistance On February 19, Looking For New Highs

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FEBRUARY 19, 2020 

STOCKS: AMD, NVDA, TSLA, SQ

MACRO: SPY

MICHAEL KRAMER AND THE CLIENTS OF MOTT CAPITAL OWN TSLA

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S&P 500 (SPY)

Stocks are rising around the globe today, and S&P 500 futures are no exception. However, they are off their highs, failing to hold above resistance at 3,379. I’m not sure that means much at this point, but if this market is to continue pushing higher, we will not want to see the future fail too many times at that level of resistance. We will need the S&P 500 to rise above that level early in the day and continue pushing higher. There is one potential catalyst today, at 2 PM, which is the FOMC minutes.

spx

AMD (AMD)

I noted yesterday in a free story; I thought AMD’s big run higher was likely to come to an end. I went through a list of things that suggest the stock is likely getting ahead of itself here. Resistance for the stock comes around $59, and it seems possible that the stock trades up to $59, and then reverse lower. My view currently is that shares fall back to around $53. I have been very bullish on AMD in recent weeks, even after the stock fell following results. AMD’s Massive Rally May Be About To End

AMD

Nvidia (NVDA) 

Nvidia was upgraded by Bernstein to Outperform from market perform and raising its price target to $360. Well, resistance at $293 hardly lasted, and that most certainly was not as I expected. Let’s see where the stock closes today; then, I think I can better figure out what’s next. 

nvidia, nvda

Tesla (TSLA) 

Piper boosted its price target on Tesla to $928 from $729. Piper is looking for opportunities in Tesla’s solar business. The all-time high for the stock is around $970, and with shares trading around $920 this morning, $970 is the price to watch for.

tsla, tesla

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Square (SQ) 

Square is at resistance at $83. I drew in what appears to be a rising wedge, and that could indicate that the stock fails to break above $83 and instead pushes lower towards $79.

Square, sq

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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