Stocks Fill The Gap, But We Are Not Out Of The Woods Yet

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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JANUARY 23, 2020

Stocks – INTC, NFLX, NVDA, FCX

Macro – SPY

MICHAEL KRAMER AND THE CLIENTS OF MOTT CAPITAL OWN NFLX

S&P 500 (SPY) 

Stocks were in a filling the gap mood again today, but this time it is filling up, instead of down. While the recovery off of the session lows was exciting, it didn’t convince me that all is perfect. Two main things worried me about today’s price action.

First off, the S&P 500 managed to now fall out of both rising wedge patterns. Also, the index managed to fail at resistance at 3,326 as it filled the gap. Meanwhile, it confirmed the breakdown from the rising wedge pattern and may have formed a new downtrend in the process.

S&P 500, spy

Tomorrow will be a telling day, but the problem is it is Friday. Given the events taking place in Asia right now, I’m not sure how investors will feel about going long into the weekend. Saturday also marks the beginning of the Lunar New Year, and a lot of markets in Asia will be closed starting Friday. 

Overall, the rebound today was nice, but I’m not convinced all is back to up. Sorry, I don’t mean to be a downer.

Intel (INTC)

Anyway, you know who is happy tonight, the Intel Option traders, that is who. Intel is soaring tonight after reporting –you guessed it, a beat and raise quarter! Why A Beat And Raise Quarter May Be On The Horizon For Intel 

It was the datacenter that was strong, and that is sending the stock sharply higher, with shares smashing through resistance at $64 and now on track to reach their next level of resistance at $69.

Good for the options guys, I’m sure those contracts will be up a lot tomorrow. Betting Suggests Intel’s Stock Makes A Big JumpIntel’s Calls Buyers Are BackRapid Update On Intel

Intel, intc

Netflix (NFLX) 

Netflix had a good day, finally snapping back. The way the stock traded higher and finally surged through that horrible resistance zone around $340, closing around $350. The way the stock behaved, it was as if the giant seller sitting on the stock the last two weeks was cleaned-up. Let’s hope it finally fills the gap to $360. See, I told you the trends were pointing to higher prices. 😛 and you thought I was crazy. 😛  Premium content- Netflix – Biggest Competitive Threat May Be Technology

Netflix, nflx

Intel (INTC)

Well, the Intel results are likely a good sign for Nvidia. The stock is rising after hours too. I still think the shares can rise to around $268. Bets Being Placed Nvidia Rises Following Results

nvidia, nvda

Freeport (FCX) 

Freeport McMoran didn’t do so well for the options traders. I guess they don’t always win. The stock broke down today, finding support at $11.40 and then failing at resistance at $12.05.

Freeport, fcx

That’s all for Today!

-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.     

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