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.
Otherwise, enjoy the column!
Subscribe to the Monster Stock Market Commentary and join the 2,529 subscribers getting it for FREE every day!
May 25, 2021
STOCKS – ROKU, BA, DIS, GS
MACRO – SPY, IWM, XBI
- RTM: Big Inflection Point For Stock On Turnaround Tuesday
- RTM – Strong Technical Trends
- RTM Tactical Update – Lower Stocks And Higher Yields May Be Coming
- Relative Performance Charts 5.21.21
- Webcast Replay
- RTM – Next Week Should Give A Better Sense Of Direction
- RTM Tactical Update – It May Be Time To Look For “Value” Among Growth Stocks
On May 25, the S&P 500 finished lower by around 20 basis points. The key here is that the bulls tried to rally the S&P 500 but were unable to. This seems to confirm that a 5 wave count off the May 19 lows is now complete, and we should see a drawdown back to roughly 4,120.
Russell 2000 (IWM)
It was not a good day for the Russell 2000; after failing to break out yesterday, it fell sharply today. It looks more and more like this index has further to fall from here, as it continues to struggle at the downtrend. I’m looking for roughly 2,120 next.
Biotech ETF (XBI)
The biotech ETF is very weak and is likely to lead the Russell 2000 lower. There is probably a good chance of going back to 115.60.
Boeing looks as if it is getting ready to take its next leg up. The stock appears to take these giant leaps and then move back to the trend line. If that pattern follows suit, it could be a push up to around $295.
Roku’s little move higher is probably about over. I recounted the pattern, and it seems like we just finished a wave “2”. It works on a fib retracement too. So the next stop could be around $240.
The rally in Disney is likely over, too, with its next stop completing the gap fill at $158.
Goldman is consolidating as all the momentum continues to get sucked out of the equity. Perhaps it finally breaks lower.
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.