Stocks Jump Following The Fed And Are Setting Up For More Gains

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 – 

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. 

S&P 500, spx

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.
skyworks, swks

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.

boeing, ba

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.

acadia, acad

Square (SQ) 

Square is sitting on support at $65.50, and I think it can fall to around $62.

square, sq

Freeport (FCX) 

Freeport had a strong day following surging copper prices higher, with $13.20 acting as the next major resistance level. 

freeport, fcx

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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