Subscribe to receive this FREE daily commentary directly in your email
December 19, 2019
Stocks: CSCO, NFLX, NVDA, AMD, FB
Macro: SPY
MICHAEL KRAMER AND THE CLIENTS OF MOTT CAPITAL OWN NFLX AND CSCO
Reading The Markets Premium Content – Get the first 2-weeks for FREE to try
- S&P 500 – 3,200 – And They Thought We Were Crazy – Whose Crazy Now!
- MORNING COMMENTARY 12.19.19
- Price Discovery – Why Stocks Seem To Fall For No Reason
- Tesla’s Stock May Continue Higher On Bullish Change In Trends
S&P 500 (SPY)
It was a good day for the S&P 500, which increased by over 30 basis points to close just over 3,200. After a few days of consolidation, we did manage to push higher above resistance at 3,199.
I am a little be confused at this point because two contrasting patterns are forming, and I’m not quite sure which one is the right one. First, there is the rising channel that the S&P 500 has been following since the middle of October.
Then there is also a rising wedge that has formed, I think. The problem is that this pattern would be a bearish reversal pattern.
So one pattern suggests we continue higher, the other suggests we reverse lower. At this point, to decide which pattern may be right is hard. It will leave me reliant on the direction stocks choose to take. At this point, I do not have a strong opinion.
Netflix (NFLX)
Netflix had a strong day after Pivotal Research made some positive comments. The stock is now approaching $335, and I do expect this to serve as resistance, also think it may prove to be a strong level of resistance. Additionally, the RSI is now overbought. So the stock likely stalls out around this range maybe even falls some.
Cisco (CSCO)
It looks like the gap for Cisco is filled, and now there is a downtrend. So which way does Cisco go? Based on the chart probably lower from here, with support at $45.65
Nvidia (NVDA)
Nvidia hit resistance at $236 and rose above the upper end of the trading channel. The RSI is showing the stock is overbought based on the RSI at 75. Perhaps shares can dip back to $225 before resuming higher.
AMD (AMD)
AMD has consolidated around resistance at $43, and now the shares appear they may be heading to $46.80.
Facebook (FB)
So much for the Facebook pullback. I give up. – Free articles on Forbes: Facebook’s Shares May Plunge Even Further
-Mike
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.
Subscribe to receive this FREE daily commentary directly in your email
This report contains independent commentary to be used for informational and educational purposes only. Michael Kramer is a member and investment adviser representative with Mott Capital Management. Mr. Kramer is not affiliated with this company and does not serve on the board of any related company that issued this stock. All opinions and analyses presented by Michael Kramer in this analysis or market report are solely Michael Kramer’s views. Readers should not treat any opinion, viewpoint, or prediction expressed by Michael Kramer as a specific solicitation or recommendation to buy or sell a particular security or follow a particular strategy. Michael Kramer’s analyses are based upon information and independent research that he considers reliable, but neither Michael Kramer nor Mott Capital Management guarantees its completeness or accuracy, and it should not be relied upon as such. Michael Kramer is not under any obligation to update or correct any information presented in his analyses. Mr. Kramer’s statements, guidance, and opinions are subject to change without notice. Past performance is not indicative of future results. Neither Michael Kramer nor Mott Capital Management guarantees any specific outcome or profit. You should be aware of the real risk of loss in following any strategy or investment commentary presented in this analysis. Strategies or investments discussed may fluctuate in price or value. Investments or strategies mentioned in this analysis may not be suitable for you. This material does not consider your particular investment objectives, financial situation, or needs and is not intended as a recommendation appropriate for you. You must make an independent decision regarding investments or strategies in this analysis. Upon request, the advisor will provide a list of all recommendations made during the past twelve months. Before acting on information in this analysis, you should consider whether it is suitable for your circumstances and strongly consider seeking advice from your own financial or investment adviser to determine the suitability of any investment.
Tight Liquidity And Rising Volatility Signal A Market Inflection
Mott Capital's Market Chronicles 10 hours ago