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.
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January 13, 2019 – 4:45 PM ET
Stocks- TSLA, NFLX, ACAD, BAC
Macro – SPY, IWM
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- The Market Is Re-Rating Tesla’s Stock
- Stocks Racing Higher – Midday 1.13.20
- Morning Commentary – Global Trends Point Higher
- Economics And Earnings In Focus The Week Of January 13
Michael Kramer and the clients of Mott Capital own ACAD, NFLX, and TSLA
Stocks continued their winnings ways, with the S&P 500 rising by roughly 70 basis points to close around 3,287. It was another good showing for sure, and even the Russell 2000 managed to participate, rising by about 75 basis points to 1,669.
S&P 500 (SPY)
The move higher continues to be on a pace to rise to around 3,400. My preferably time would by around the end of March or the beginning of April. However, if we continue at this current pace, we may only have room to rise to around 3,350.
The Russell (IWM)
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The Russell has that megaphone pattern that has formed recently, and I think that means we are approaching a move higher in the Index. For some reason, the chart reminds me an awful lot of the S&P 500 at the end of September.
Do you remember this chart from September 26? It is not precisely the same, but the similarities are there.
Anyway, Tesla blew right through my target of $508, and it looks like the next significant level of resistance should come around $527. I explain today in a video what I think is happening, and why it is suddenly running like this. The bear case is dead, and believe it or not based on earnings growth estimates, the stock could even be cheap. The Market Is Re-Rating Tesla’s Stock
Acadia got crushed today falling by roughly 7.5% because the company’s slide show for their presentation tomorrow said that the sNDA for Dementia-Related Psychosis would be filed in the summer of 2020, versus what the company said at CTAD for the first half of 2020. If the company files the sNDA on June 29, technically that is the summer of 2020, and also the first half. I mean even if it were August does it really matter that much? Probably not. Hopefully, they can clear this up tomorrow.
Netflix had a great day, too, after it was nominated for 24 Oscar awards. It was most out of any studio, with 2 for the best picture. The stock does not like the $336- $340 region; it just can’t get through it. It does make sense, though, given the next resistance comes at $360.
Bank of America (BAC)
Over the weekend, I thought Bank of America might be heading lower after results. Then I saw bullish options betting that made me change my mind. I think it could be heading above $37 in the weeks to come. Free story- Bank Of America May Surge Following Quarterly Results
Anyway, that’s all for today.