January 6, 2020
STOCKS: TSLA, NFLX, AMZN, BB, CRM
MICHAEL KRAMER AND THE CLIENTS OF MOTT CAPITAL OWN TSLA AND NFLX
Reading The Markets Premium Content:
- Subscriber Mailbag – Looking At Fundamentals
- First Live Webinar – Jan 16 9:30 PM EST
- Stocks May Merely Be Filling The Gap
- MORNING COMMENTARY 1.6.20
- Sector Rotation On Watch For The Week Of January 6
S&P 500 (SPY)
The sell-off lasted for about the first hour of trading. Then it got back to the flatline and surged into the close, rising by about 35 basis points. That’s what I call a pretty good day.
The fear indicators quickly faded as the day wore on, with the VIX closing below 14. That’s a nice intraday retracement. Meanwhile, the S&P 500 filled the gap from the open and just continued to push higher.
It seems like the next stop for the S&P 500 may be back at the highs around 3,250.
Meanwhile, Netflix had a good day, rising back to resistance $336. This is the stock’s second attempt to break out at this level, and it is a significant level. If it crosses $336, then it likely goes on to rise and fill the gap up at $362. The RSI is trending higher, and that indicates to me that this time it breaks out.
Tesla continues to run higher ahead of a Model 3 event in China tomorrow. It appears there is talk of the Model Y launch coming too. The stock is testing its previous highs around $454, and an increase above that price sends the stock higher, and I think $475 could be its next stop it’s way to $510.
Amazon had a good day and is on the cusp of breaking out at $1,900. If it can cross that price, it can probably rise to around $1,967.
Salesforce broke out today by rising above resistance at $167. It may result in the stock rising to around $182.
Its been a while since we last spoke about Blackberry. Now the stock is breaking a downtrend and rising above resistance at $6.67. Perhaps it even fills that gap up to $7.50. My only problem is that the RSI is already showing the stock is overbought.
Have a good night!