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June 10 – Stock mentions: SPY, AMZN, TSLA, GILD, QCOM, SQ, NVDA, BYND
Michael Kramer and the clients of Mott Capital own shares of TSLA
S&P 500 (SPY)
The stock market continued to rally, and the good news is that I think it shall continue. Again, one has to wonder just how big of a part tariffs ever played in the stock market sell-off. The tone out of President Trump this morning in his dial-in phone call to CNBC did not sound as if everything was going great with China. I don’t know that we can call the near 5.5% rally in the S&P 500 since last Tuesday anything other than Fed-related. It certainly isn’t China-related that is for sure. Consider that since June 4 the Shanghai composite is also down over 2%. It also was not a coincidence that the market sold off following the Fed’s last meeting on May 1.
I think most of the steep declines we saw in May had potentially a lot more to do with the Fed than with China or tariffs. Again, I think tariffs will have a minimal impact on the US economy; I can’t say the same for China.
The only thing I’m left wondering at the moment is the path which the S&P 500 will take. At this point, I’m not sure, but I do think that the S&P 500 is heading towards 2,915. I talk about it more in today’s video commentary: Stock Market Continues To Power Higher
Of course, there is always the risk of that unfilled gap at 2,850 getting filled too, so let’s not get overconfident just yet.
Amazon has managed to lay my fears to rest and has risen above resistance at $1850 and the downtrend. It sets up a potential rise back to $1,960
Tesla is also on the rise after breaking above resistance at $205 and sets up the potential for a move higher to $225. I covered both Amazon and Tesla in my premium write up today. Why Tesla And Amazon May Rise Further
Gilead looks like it about to take its next leg lower, towards $56.
Qualcomm is challenging resistance at $70. The RSI is now trending higher and I think that sets this stock up to retest to fill the gap at $76.50
I have reserved my comments on Square because I have not had a good sense of the trend. But it seems the stock is breaking out and could test resistance at $75.
For now, Nvidia has hit resistance around $150 and failed; we will see what happens tomorrow before making the next call.
Beyond Meat (BYND)
I wrote up a story on Beyond Meat today; I think the stock is poised for large drop to around $100. You can that RSI has turned lower, and the stock appears to be forming a descending triangle, plus look at that large gap to be filled. Short Sellers May Be Piling Into Beyond Meat
That’s all for today.
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