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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MICHAEL KRAMER AND THE CLIENTS OF MOTT CAPITAL OWN AAPL,NFLX,CELG
Stocks attempted to mount a comeback today, but by days end much of it had fizzled. The S&P 500 failed at resistance around 2,670 and then managed to retrace most of the morning’s rise, filling the gap from the opening.
I noted this today during the StockTwits Daily Q&A session that the same thing was happening in the NASDAQ. But unlike the S&P, the NASDAQ managed not to retrace and held most of its gains, despite failing at resistance.
The same is true of the XLK technology ETF.
It was not the making of a strong rally; it was a feeble attempt. I knew it was weak because the market leaders never even participated.
Apple failed at resistance around $180 early in the day.
Netflix failed to stay above $270.
Nvidia failed when it got close to resistance around $160. Although I would no longer consider Nvidia, a market leader. Certainly not after last week.
Amazon didn’t put on a good show either today, despite staying above $1,500.
Interestingly the two worst performing groups today were staples and healthcare. We can begin to ask if there is a bit of a rotation out of these two safe havens and back into select beaten down groups? Perhaps, but one day does make a trend, let’s see what happen next week.
A reader asked me to take a look at Celgene. All I can say it is a disaster and I can’t believe how far this stock has fallen. The stock did hit crucial support at $66.90 and had held firm thus far. Perhaps the RSI is starting to turn higher. Should support at $67 fail, the next level is around $55. If the stock can rise above $74, then perhaps there a chance for a rise to $86.50. More then the chart the company needs to spark investors hope they can continue to diversify their revenue streams away from Revlimid. The pipeline is deep, and the company has many partnerships, but again there needs to be a catalyst.
Another reader asked me about hedging. I’d have to admit I don’t hedge my portfolio. However, I can afford to do that because I do not use margin, and I only buy things I expect to hold for many years. So when I get bearish on the market, I reduce the size of my portfolio and raise cash.
The easiest way to hedge may be to buy a put for the stock or short an ETF. But again, this isn’t something I really do.
That is it! Happy Thanksgiving.
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.
SP500, nasdaq, amazon, netflix, apple, nvidia