Stocks Jump But Offer Little If Any Confirmation

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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STOCKS – BA, AAPL, MSFT, AMZN, W

MACRO – SPY, XLI, VIX

Michael Kramer and the clients of Mott Capital own AAPL, MSFT, GOOGL

Stocks had a good day recouping all of there loss from last week and then some. The S&P 500 managed to finish around 2955, but in a precarious spot. Again, these are merely the facts, look at them; however, you please. The index managed to close pretty much right on the lower trend line of the rising wedge from we identified over the past two weeks. 

So it is simple, as I explained in a video for subscribers, if the S&P 500 can push through that uptrend, then it stands a chance to race towards 3100. If it does, fail to push through that uptrend, then it likely looks to fill the gap and potentially more. I’m not saying it will or won’t. I do not know.  (Premium content – 3100 Or Bust – Quite Literally)

It would have been ideal for the RSI to push to a new high, to confirm today’s gains, but it did not. Typically, that is not a bullish sign, but based on how things finished, I’d call it a push. 

It would have also been nice for the VIX to make a lower low, but it did not. 

Amazon was also unable to push to a new high, and its RSI still suggests the stock heads lower. amazon, amzn

Microsoft also failed to make a new high, and its RSI is still pointing lower. 

microsoft, msft

Apple also failed to make a new high, and its RSI is also pointing to lower. 

APPLE, AAPL

Anyway, I’m not going to go through the others because they are unchanged. So while it is fantastic that industrial rallied today, does it matter? Besides, the ETF failed precisely where it has failed three other times. 

What does it matter Boeing was up 13% today when it still down about 17% from April 8.

Wayfair (W)

Then, of course, you have Wayfair which got smoked today. I said $122 the last time, I wrote, but I think i misjudged the gap, it should have been $134. What is $8, when there is another 13% or so potentially to the downside? Some breakaway gap, what a joke… 

 

Anyway, it is what it is, 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.

 

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