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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June 12 – Stock Mentions: SPY, QQQ, IWM, SMH, AAPL, AVGO, TSLA, SQ, SNAP
Michael Kramer and the clients of Mott Capital own AAPL and TSLA
Michael Kramer own SMH Calls
Boring, perhaps. Frustrating, yes. It was a frustrating day. There were a bunch of the indexes just stuck in the mud. Maybe the buyers are tired, or perhaps they are thinning out. Whatever the case, the sellers seemed to be able to keep a lid on things holding key levels across many indexes.
S&P 500 (SPY)
The S&P 500 was one of those indexes just hanging around resistance in the 2,880 to 2,885 zone on June 12, not able to crack 2880. I think I redrew the chart about five times throughout the day. Each time in search of the trend. Right now, it is pretty simple because that trend is lower.
I have settled on this trading channel. It could be the start of a bull flag, maybe. It’d be great if it were, it would mean the S&P 500 is on pace to rise to 3,040. As of right now, it may only be wishful thinking. (Premium content: 2 Big Indicators To Watch)
However, if it is the case that it is a bull flag forming there are signs that it could break out tomorrow, based on the Russell chart below.
We can see there is a very similar pattern that as formed in the NASDAQ.
I think the Semis may be secretly sending us a black swan message. Like the bond markets two weeks ago that was sending the smoke signal of an imminent recession. What do you think? LOL. Oh, I crack myself up sometimes. Get it.
Well, maybe it looks more like a bird or duck then a swan. Anyway. I’m still laughing. Hey, you have to fun if you expect to have any longevity in this business.
The Russell got held up on June 12 at 1521, and this index has to break out. You can see the setup —
uptrend+breaking of downtrend = breakout above 1,521.
Let us hope it does on June 13.
Apple is trying to break out at $195, and there is a good chance that happens tomorrow if we can get that break out on the indexes. Or better yet, maybe AAPL leads that breakout! Now that’s a thought!
Broadcom reports results on June 13, and what they say is pretty essential on several levels. AVGO filled the gap fast then I thought. It tough to say where AVGO goes after earnings now. I’m thinking the momentum favors AVGO rising.
Tesla couldn’t get over $225 on June 12, but I think it shall. The trends are shifting, and momentum is shifting. We will see what happens in the next day or two. There may even be a “leaked” email or two over the two weeks to help, who knows! The quarter end push is quickly approaching.
Square looks like it is getting ready to go to $75. It has consolidated the last two days nicely.
Snap is starting to see some bullish momentum and it could be on its way to $16, you can read more in this free article I wrote today. Snap’s Stock May Climb Even Higher
Have a good night!
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. TSLA June 12