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Stocks Breaking Critical Support And Could Be At Risk Of Falling Further
The stocks market recent bout of volatility is not only exhausting but confusing as well. It started in early February on inflation concerns, it moved to rising yields, to trade war fears, to Facebook, to Amazon, and now back to trade wars. So which is it? Not sure. But it does tell us one thing. The market and buyers are extremely fragile, and the slightest bit of negative news is enough to get traders to dump their shares.
It was January 29, that I warned stocks were looking toppy going into quarterly results, and for the most part those results were strong. But yet they weren’t enough to keep equity prices from dropping. But as I had noted back then, some of the prices had gotten way ahead of themselves. After the market bottom in early February, technology stocks took off once again, with shares of Amazon and Micron surpassing their previous highs, as analysts upgraded and raised their price targets.
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During the latest round of selling stocks likes Google, Netflix, Micron, Nvidia, Apple, Microsoft have managed to hold on and avoided breaking some key levels of importance. But in Friday’s commentary, I noted concerns, and cracks started emerging, and that was extremely worrisome to me.
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Nvidia
Nvidia, which has held extremely well at $218 finally broke, and that should be a concern.
The RSI has been trending lower since peaking in mid-February over 70, and volume has been tapering off in recent days. If the stock bounces Monday and is unable to get above $219, it is likely a good sign that next move is lower to around $204.
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Apple
Apple share failed at resistance around $174 moving below support at $169. If that isn’t a crack then I do not know what one is. I think downside is limited here to maybe $160ish.
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Biogen
Biogen shares continue to melt, with no end in sight, it might not stop falling until $250.
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Incyte
Incyte totally blew-up on Friday after reporting negative results on its trial for one its cancer drugs in development in combination with Merck’s Keytruda. This is just another example of why the Biotech sector has been so terrible in 2018.
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Nektar
It took Nektar down with it.
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GE
I still think GE is heading to a $10 handle.
Blackberry
Blackberry cracked and could be headed towards $10.
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Microsoft
Microsoft held support at $91.50 until it no longer could. Not good.
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Micron
Micron held $49.75 until it cracked as well.
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But at least one stock is still holding on. It is the lone wolf here.
-Mike
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Michael Kramer and Clients of Mott capital own shares of NETFLIX and GOOGL
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Tags: #sp500 #tech #technology #tesla #micron #nvidia #google #blackberry #ge
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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.
The Stock Market May Be At Peak Valuation - Advanced Topics
Mott Capital's Market Chronicles June 13, 2025 2:08 PM