STOCK MENTIONS: TSLA, TWTR, BA, BAC, WFC
MACRO MENTIONS: SPY
MICHAEL KRAMER AND THE CLIENTS OF MOTT CAPITAL OWN TSLA
S&P 500 (SPY)
It was an uneventful Friday with the S&P 500 rising by 20 basis points to close at 3,110, right on resistance. Interestingly, once again, there was some talk of new tariffs coming into play on December 15. Yet the market did not even blink on the news.
I talked about what I think is happening in the market in an in-depth video today for premium subscribers. It is as simple as this; the market seems to no longer care about the trade headlines, it has been replaced with the knowledge that the Fed will remain in an easy monetary policy stance for the foreseeable future. It goes back to what I said on October 30 on the day of the last Fed meeting. Premium content – The Message Is Loud And Clear, The Market Wants To Go Higher
Additionally, with the prospect of a return to earnings growth, in a low rate environment, the market has come to accept that the greater risk is not being invested. The unknown of how the economy would handle tariffs and what the impact on the economy is no longer an unknown variable. If anything, the one-time effects that tariffs have had on corporate profits are now behind us.
It seems clear, the market wants to go higher.
Tesla didn’t have the greatest of day, but not that much damage was done to the chart. The stock filled a gap down to $333, and the RSI is still trending higher. I think the stock will revert and start pushing back to $360. Premium content – How I Use The RSI To Find Turning Points In Stocks
Boeing is very close to rising above resistance and pushing back to $400. The RSI tells me the trend is changing, and the stock is moving up from here.
Twitter managed to get above resistance at $29.70 and is probably now going to push back to $31.90.
BANK OF AMERICA (BAC)
It looks like Bank of America is breaking out of and could be heading back to its highest prices since 2009 to $34.50.
WELLS FARGO (WFC)
Meanwhile, Wells Fargo looks like it may be heading back to $57.20. The banks are back.
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