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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December 11, 2019
Macro: Fed
Stocks: ACAD, SQ, FCX, SWKS, BA
MICHAEL KRAMER AND THE CLIENTS OF MOTT CAPITAL OWN ACAD AND SWKS
Reading The Market Premium Content From December 11 –
- Post Fed Thoughts
- Semis Leading The Charge Ahead Of The Fed
- Netflix Traders Betting On A Rebound
- Fed Day – Morning Commentary 12.11.19
S&P 500 (SPY)
The S&P 500 managed to finish the day higher by roughly 30 basis points to finish at 3,141. The index got a bump following the FOMC rate decision, which was a no change in rates, as expected. So why did the market rise? Primarily, because the Fed has made it pretty clear that the bar for cutting rates is lower than the bar for raising rates. The Fed is going to be more inclined to cut rates at the first sign of weakness and not increase rates should inflation and the economy strengthen.
If that isn’t a bullish scenario for stocks, then I’m not sure what is. I talked about some this more in a post-Fed commentary, going through the dot plot and the story that dots told – Post Fed Thoughts
S&P 500 (SPY)
The interesting thing is that the S&P 500 is starting to show some resemblance of a pennant formation, a bullish continuation pattern. It does suggest that the market is likely to move higher tomorrow, and potentially move on to new highs.
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Skyworks (SWKS)
Skyworks had a big day along with the entire semiconductor sector. The stock is now reaching overbought levels and is near resistance. This is likely a perfect place of the stock to consolidate, especially if it is going to continue higher.
Boeing (BA)
Boeing fell sharply today but recovered all of the losses by days end. But it appears to be more of a gap-fill then anything. This one may still have further to fall.
Acadia (ACAD)
Acadia continues to fall, and it is filling a gap. Yesterday I was not careful enough when evaluating how much more it needed to fall for the gap to be closed if we play this by the book it needs to fall to $44.30.
Square (SQ)
Square is sitting on support at $65.50, and I think it can fall to around $62.
Freeport (FCX)
Freeport had a strong day following surging copper prices higher, with $13.20 acting as the next major resistance level.
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