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Stocks Rip Higher, Plus A Look At The Baker Brothers Top 5 Holdings
This stock market is getting frustrating. Yeah, I know the S&P 500 was up by 1.6 percent on the day, but the problem is that it closed at 2,656. In the midday commentary, I noted I was looking for a close above 2,660. I know it is only 4 points too but look at the trend line in the chart below.
But here is the good news, the technology ETF, XLK broke above $66, and closed above $66. That is a victory! We can see that the XLK broke out on Apri 4, then retested the downtrend on April 6, and we have been higher since. If the breakout is for real, the the XLK could be on its way back to over $67. In fact, should the bulls juice get flowing, then a rise to $70 could be a genuine possibility.
The majority of the XLK breakout should be to Facebook, finally rising above $161.5, after multiple failed its attempts. I’m guessing the market liked the testimony Mark Zuckerberg had to offer Congress. $166 will be a big test of how strong resistance is there.
But not was all fabulous, because JP Morgan is still around $112.50, unable to break out, and earnings coming on Friday morning.
Amazon tried to get above $1440 and is still cannot.
Even biotechs had a healthy day, with the IBB rising by nearly 3 percent. It also broke out of that terrible downtrend it had been in since mid-March. That looks like a sextuple bottom in the IBB. Is there even such a thing? To my knowledge no, but there it is.
Biogen shares still look lousy.
Even the Baker Brother’s top holdings are starting to go back up, barely. Their top holdings have performed lousy for some time as if some more prominent investors are betting against them, trying to keeping these stock down. Is that even possible? Look though. \
Look at Alexion despite, the positive trial results, and a bunch of analysts upgrades this thing still can going. The average analyst price target on Ycharts is $158, 40 percent upside! What gives?
Even Incyte bounced a bit today; it has been smoked since the negative trial results. This stock was once $150, over a year ago. Remember this was thought to be a buyout candidate back then.
Well BioMarin, not much to say here, but then again it has been that way for 2 years!
The Seattle Genetics chart is not looking so hot, let’s say it is a tipping point and looks bearish.
Finally Acadia, maybe, just maybe, the stock has puked out all the garbage and negativity, maybe. Thanks, CNN you did more damage than any sell-side analyst could have done. Forget about filling gaps, let’s just get the stock stabilized, and hope the article didn’t destroy future sales.
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Michael Kramer and Clients of Mott capital own shares of ACAD
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.
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Tags: #stockmarket #bakerbrothers #acadia #biotech #alexion #technology #amazon #incyte #facebook