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April 12, 2019
Michael Kramer and the clients of Mott Capital own Netflix, Disney, Tesla, and Skyworks
Michael Kramer owns IWM Calls
US Trading
- S&P 500 Futures +13.25
- 10-Year Treasury 2.54%
- Oil $64.50
- VIX 12.50
- Dollar Index 96.85
International Trading
- Japan Nikkei +0.73%
- China Shanghai -0.04%
- Hong Kong HSI +0.24%
- South Korea KOSPI +0.41%
- German DAX +0.57%
- UK FTSE +0.41%
Key News:
- Eurozone Industrial Production y/y: -0.3% vs. estimates of -1% and previous of -0.7%
- Disney+ Streaming $6.99/month starting on November 12
- Tesla Model 3 now available via lease
- Chevron to buy Anadarko for $33 billion
International Trading
The South Korea KOSPI continues to grind higher rising to 2,233 and is now firmly above resistance at 2,225.
US Trading
S&P 500 (SPY)
The S&P 500 is pointing to a higher opening of about 50 basis points higher. That will push the index above resistance at 2,891, and to right around 2,900 at the open. We had been looking for the breakout yesterday, but one day late is fine by me.
Russell (IWM)
The Russell is also pointing to a rise of about 35 points to start the day. It will send the index on a course with resistance at 1,592. My view has been the index eventually makes its way towards 1,710.
Disney (DIS)
Disney is trading higher this morning rising above $120 after it revealed its Disney+ streaming service yesterday for $6.99 per month coming in November. $121.50 to $122 will serve as resistance, and I’d be shocked if the stock is not trading above those prices in after a few weeks.
Netflix (NFLX)
Netflix is trading lower as a result of the Disney launch, but don’t expect the Disney product to replace Netflix, it won’t. Disney’s service is a niche product with limited content. It is a nice addition to someones streaming universe, but Netflix is still a staple, offering plenty of content, and creating plenty of its own.ย For some more thoughts, you can read Disney+ Is Here — Get two weeks free.
JPMorgan (JPM)
JPMorgan is rising after it posted better than expected first quarter results. The company reported revenue of $29.1 billion versus estimates of $28.05 billion. Earnings came in at $2.65 per share versus estimates of $2.35 per share.
The stock had been flirting with a resistance yesterday around $106.50, and this morning it is trading above that level to around $109, with $113 acting as its next level of resistance.
If JPMorgan represents what we have in store for the rest of earnings season, then I shall it again, the market has much further to climb because estimates have fallen too far.
All of the big banks are reacting favorably to the news with Citigroup and Bank of America rising too.
Citigroup (C)
Citigroup is rising above resistance this morning at $65.90 and has room to increase to around $70.25.
Bank of America (BAC)
Bank of America is also breaking out rising above resistance at $29.50.
AMD (AMD)
AMD is trending higher this morning and is likely heading back to resistance at $29.40.
Skyworks (SWKS)
Skyworks is also breaking out to rising above resistance at $88.
-Mike
Mott Capital Management, LLCย 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.