Home » Stocks Feel Like They Just Want To Explode Higher, And They Just May

Stocks continue to grind higher despite all signs they should be pulling back. The market feels like it just wants to explode higher.

Stocks Feel Like They Just Want To Explode Higher, And They Just May

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 2,041 subscribers getting it for FREE every day!

Follow Us on StockTwits

October 21

Stock mentions: ACAD, NFLX, AMD, NVDA, AAPL

Macro mentions:  SPY, 10-Year yield

MICHAEL KRAMER AND THE CLIENTS OF MOTT CAPITAL OWN ACAD, NFLX, AAPL

Today’s Reading The Markets Premium Content

MACRO

S&P 500 (SPY)

Stocks seem as if they only want to go in one direction, and that is higher. Much to my surprise, the market blew-off Friday’s sell-off and powered higher. The market has a feel as if it just wants to explode higher. You can feel it, you can see in the charts, or at least I can, words can’t describe it.

The S&P 500 rose above resistance today at 3,000, and it appears the next significant level to watch is for 3,014, and then 3,025.

I laid the reason why it may from a fundamental and a technical point of view all in one weekend!

S&P 500, chart of the stock market breaking out

10-Year Rates

Interestingly, 10-year treasury rates find themselves in a similar scenario of going higher. The yield is now hovering above at 1.8% and appears to be heading towards 1.9%.

us10 year yield

So we will continue to wait and watch.

STOCKS

Acadia (ACAD)

Acadia rose sharply today on solid volume. A surprising 8% move higher on a no-news day. I talked about ACAD today in the mid-day commentary and noted that we should be seeing the data for their negative symptoms of schizophrenia trial in a matter of days or weeks. The primary completion date was October 2019, and the Study Completion date is for November 2019 based on clincialtrials.org. The company does report results on October 30.

I noted in the midday that $44 is the only thing standing in the way of $48.  Stocks Feel Like They Just Want To Go Higher

chart of acadia  acad

Netflix (NFLX)

Netflix fell pretty sharply to start the day but bounced back nicely to finish it. It wasn’t the great performance, but consider how steep the sell-off and reversal on Friday was, and the fact that it bounced back at all is positive. The stock needs to hold this $270 region. If that can happen, perhaps start creeping back to $284.

chart of netflix holding technical support

 

AMD (AMD)

AMD did rise above $31.40 but failed at $32.30. I still think the stock is heading lower, as I laid out in my premium article from Friday.  – Here’s Why AMD May Drop By As Much As 12%

amd chart hittting resistance at $32.40

Nvidia (NVDA)

Nvidia is getting close to a break out at $199, and I think the stock can push higher towards $217, as I talked about in this free story today. Nvidia’s Hot Run May Get Even Hotter

nvidia, nvda

Apple (AAPL)

Apple keeps going higher. I’ll say this; I hate when stocks run-up like this into earnings. It means expectations are likely getting out of control, and disappointment is around the corner.

apple, aapl

Have a good one

-Mike

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.