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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FEBRUARY 10, 2020
STOCKS: MSFT, GOOGL, ACAD, AMD, IBM
MICHAEL KRAMER AND THE CLIENTS OF MOTT CAPITAL OWN MSFT, ACAD, GOOGL
MICHAEL KRAMER OWNS SPY CALLS
February 13, 2020, Live Streaming Event
Michael will be hosting a live streaming event for members of Reading The Markets for Seeking Alpha and StockTwits on February 13 at 9 PM ET. It will focus on how he uses fundamentals, technicals, and options market analysis to find stocks on the move. As well as taking questions from members!
He will be reviewing mostly the basics of Technical Analysis and Option Trading
Well, stocks continue to roll, and the leadership in the market appears to be just a handful of companies, and as long as these companies remain strong, it’s hard to imagine the stocks can’t continue to rise. I think it has become just that simple. Microsoft, Apple, Alphabet, and Amazon have had great years, and they happen to be the four largest companies by market, with a valuation of around $5 trillion between them, out of a total market value of about $30 trillion. I talked about more in this video today for premium subscribers. 5 Big Reason Stocks Continue To Rise, And The Fed Isn’t One Of Them
S&P 500 (SPY)
The critical part, however, came late in the day when the S&P 500 set a new closing high at 3,351. It is hard to deny that the market finds itself in a favorable position now and can push even higher towards 3,400. Consider that before the coronavirus, the RSI on the S&P 500 was toppy with a reading in the mid-’70s with the S&P 500 trading around 3,335. Today we have an RSI at 63 with S&P 500 trading at 3,350. I think this sets us up nicely to push the S&P 500 on to 3,400 in the coming weeks. I alerted members today of this, and how it prompted me to by the March 20 SPY $340 calls.
Acadia looks like it is finally breaking free of that falling wedge pattern and appears to be trying to clear resistance at $43.35. I think we can see the stock rise to around $45.85. I’m still wondering when they are reporting results. Last year they didn’t post results until February 26, and this pace it is looking like it may be around the same time.
AMD looks strong, and I’m super impressed at the stock’s ability to work higher. I talked about it today in the mid-day commentary, and why the stock is likely going back to $53.
Oh those options traders, they are good, aren’t they? Microsoft continues to power higher, and the stock was up to $189. It was just last week when the stock was $180 that we saw the options traders buying calls, and the stock is up $9, since. Here if you want to read what you could have read last week, I wrote up this free article on Forbes website. Microsoft’s Massive Stock Gains May Be Far From Over, I still think the stock is probably heading to $200.
Alphabet had an intense day, and it is breaking out too, finally clearing $1,500. So much for that post-earnings drop. Anyway, the stock looks like it is on its way towards $1,600.
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.