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September 16 – Stock mentions: SPY, ACAD, BB, MU, AMZN, NFLX
Michael Kramer and the clients of Mott Capital own ACAD, NFLX
MACRO
Stocks had a mild decline with the S&P 500 falling by roughly 30 basis point, nothing dire. However, what did have a significant change is the odds of a rate cut on Wednesday. Currently, the odds of a 25 bps rate cut on September 16 have fallen to just 63.5%.
Fed Funds Futures have been gradually creeping higher in recent days. It suggests that a rate cut is no slam dunk on Wednesday, and one should mentally beginning to prepare for a scenario where the Fed doesn’t cut rates. I talked about this a lot today in my video; in fact, I spent the whole video going through this and why they may not cut rates. The Odds Of No Rate Cut Are Rising Sharply- Get the first two weeks for free.
I still expect a rate cut on Wednesday. However, I think Powell will have to position his stance as act as appropriate to sustain the expansion, without signaling futures cuts are happening. I don’t envy him.
Oil
The move higher in oil was so important me that I totally forget to even mention it until I was writing the title. Oops. Anyway, WTI oil hit resistance at $63.55, and pullback. We’ll see what happens tomorrow.
S&P 500
As of now, the chart of the S&P 500 looks fine, and the trend continues to be higher for now.
STOCKS
Acadia (ACAD)
Acadia had a big day, rising by over 9%. The stock rose above resistance at $42. It means that the next significant level of technical resistance at $48. I’m sure if the move up today is on expectations of another event? The negative symptoms study isn’t likely to see results until late October.
Blackberry (BB)
Blackberry had a good day but failed at the downtrend line around $7.75. I think the stock breaks the downtrend and continues higher on to $8. That RSI is continuing to rise nicely.
Micron (MU)
Micron managed to hold support around $49 today, and still, I think the stock can continue to work higher towards $54.The company reports results on September 26.
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[youtube-feed feed=7]Amazon (AMZN)
Amazon was down today on the WSJ article, but the outlook for the stock seems unchanged. The stock is still holding the uptrend and support around $1800.
Netflix (NFLX)
Finally, Netflix managed to scratch out a minor gain. The stock is emerging from the falling wedge and even close over $293. Hopefully, it is a sign of good things to come and the start of its move higher. Premium content – Netflix Still Has Some Life Left – Get the first two weeks free to try.Â
Have a good evening.
-Mike
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