Stocks Remain Overbought, as Biotech’s Break Out

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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11/19/2019

Stock mentions: AMD, MU, FCX, TSLA, SQ

Macro mentions: SPY, XBI, XLY

MICHAEL KRAMER AND THE CLIENTS OF MOTT CAPITAL OWN TSLA

Another dull day in stock market land, with the S&P 500 falling by 2 points to 3120. The market is flat, and from my standpoint, it is helpful for me, because I can focus on things such as website maintenance and preparing for how I want to continue to build my business in 2020. 

If you haven’t noticed, over the weekend, I made several key upgrades to help increase the speed and responsiveness of the website. Today, I changed over my push notification provider. So sorry, but anyone that wants to continue to get push notifications, you will need to accept that change. 

Anyway, yeah, that is how much I have to say about the market today. Nothing has changed from a broader market perspective from where we were this morning. That said, the market still finds itself in an overbought position.

Biotech (XBI)

Biotech stocks had a great day, with the XBI rising over 2.6% to over $87. The ETF appears to be breaking out of a significant downtrend. I noted this in the mid-day update today. This is important because the ETF has been in decline since September 2018. Premium content – 3 Stocks Up, 2 Stocks Down

xbi, biotech

Consumer Discretionaries (XLY)

On the other hand, the discretionary stocks did not have a good day, with the XLY down 1.1%. The group fell on the negative Home Depot results. The ETF finds itself on the cusp of a significant breakdown. I talked about this being the group to watch today in the morning commentary for premium subscribers. premium content- The Morning Rundown 11.19.19

consumer discretionary, xly

AMD

AMD’s stock has gone vertical and is now approaching extremely overbought levels. It seems possible for the stock to continue to rise, but the odds seem to be growing that the stock will be heading lower. Potentially back to $37.20.

amd

Tesla (TSLA)

Tesla is continuing to rally and is butting up against resistance at $360, ahead of the Thursday’s pick-up truck reveal. The stock is getting overbought some, so we could be setting up for a buy the rumor, sell the news event. That said, I don’t the downside is likely too far below $350.

tesla, tsla

Freeport (FCX)

Freeport had a good day, and I think the stock is getting ready for that push higher to $12.05. 

freeport, fcx

Square (SQ)

Square also had a very good day, and the break out appears to be strengthening for a push to $70. 

square, sq

Micron (MU) 

Micron looks very weak, and based on what I see in the options and the chart; I no longer think this stock is heading higher. Instead, I think it is heading lower potentially to $42. Free article – Micron’s Declines May Only Be Starting

micron, mu

-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.  

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