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Stocks Fall Again and The Russell May Be Signalling A Bearish Sign

Stocks Fall Again and The Russell May Be Signalling A Bearish Sign

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!

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Michael Kramer and the Clients of Mott Capital Netflix

S&P 500 (SPY)

Stocks were weak once again. We can see in the chart that the S&P 500 is testing its lows from the other day, and for now those lows are holding. At this point, I can’t say I’m overly concerned. A pullback to 2,750 wouldn’t concern me either.

S&p 500, spx

Russell (RUT)

The Russell, now that is a different story. We can see the index has broken its uptrend and a drop below 1,530 clearly triggers a steeper decline to 1,492. Diverging indexes are never a good sign. We really need to see the Russell stabilize here. I would get more nervous over the short-term should the Russell crack below 1,530.  It would likely signal a steeper pullback for the S&P 500 too.  We will need to monitor.

russell, 2000

Biotech (XBI)

The XBI continues to look really weak, and a drop to $85.25 seems likely at this point.

biotech, xbi

Nio

Nio shares tanked over 20%. I went through the story this morning.  The stock fell right through support at $8.35 and now appears to be on its way to that $7.72 region I mentioned earlier.

nio

GE

GE also continues to fall, and I noted this morning the stock was facing a decline below $9. This afternoon it seems like those odds just improved for a drop to $8.90.

ge

AT&T (T)

AT&T continues to look really weak. The stock continues to fall after failing at resistance at $31.20 and suggests a decline to $28.92.  In fact, according to data from SmartStops, the equity just entered an elevated risk state indicating there may be further declines ahead.

T, AT&T

Blackberry (BB)

I have really screwed up this Blackberry, after weeks of getting it right. I guess I ran out luck. I don’t know; I have to think about this one.  The RSI really bothers me though.

Micron (MU)

Micron is another one that has turned against me. This one appears to be entering a region where it should find support around $36 and bounce.

Micron, mu

AMD

AMD also has turned sour. A drop below $22.80 means $21 is coming.

amd

Amazon (AMZN)

Amazon is failing at this downtrend. I really thought this time it would break out. We will need to watch this one closely now.

amazon, amzn

Netflix (NFLX)

Netflix is another one that struggled at the downtrend. But I noted today, I was seeing bullish activity in the stock. Big Options Activity On Netflix

netflix, nflx

Back tomorrow

-Mike

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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. M