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 3, 2020
Stocks- NFLX, BA, AMD, INTC, NVDA
Macro- SPY, ISM
Michael Kramer and the clients of Mott Capital own NFLX
S&P 500 (SPY)
Stocks moved higher on February 3, with the S&P 500 rising by around 70 basis points back to 3,246. But not is all good news because it would appear that a bearish downtrend has formed. I first noted this in the midday commentary. It will be essential to see what happens from here, do we fail at the trend line or break higher. My suspicion is that we know more tomorrow, one way or another. Premium content – Downtrend Detected In S&P 500
The ISM manufacturing report came in today, and it showed an improvement in the sector with a better than expected reading of 50.9%. More critical is that it corresponds to a GDP growth rate of 2.4%. Additionally, GDPNow is forecasting first quarter GDP growth of 2.9%.
Netflix is higher today and is very close to $362 now. That is the big level of resistance we have been waiting for. It is simple, breakout, and we go to $385. Remember, we saw the bullish betting in this one last week, and the stock has performed very well during this whole market downturn. Premium content – Why Netflix Stock May Have Bottomed
AMD looks solid and is bouncing back today, rising over $48. The stock has done a fantastic job holding the trend line and support around $46.80. Going back to $50.50 seems feasible at this point.
Nvidia is looking reasonably strong, too, and is breaking a downtrend at the moment. It could result in the stock rebounding to around $246.
Boeing continues to trend lower, and all the signs suggest it falls back to $297 to $300.
Have a good one
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.