Monster Market Commentary

Stocks Set To Fall Slightly on October 16, But the Broader Trend Is Higher

October 16 – Stock mentions: ROKU, NFLX, AAPL, AMZN, BYND

MICHAEL KRAMER AND THE CLIENTS OF MOTT CAPITAL OWN NFLX, AAPL

US Markets

  • S&P 500  Futures -6.25 points
  • US 10-Year 1.75%
  • Dollar Index 98.34
  • Oil $52.90
  • VIX 13.92

International Markets

  • Japan +1.2%
  • Korea +0.71%
  • Shanghai -0.41%
  • HK +0.61%
  • Germany +0.30%
  • UK -0.13%

MACRO

JAPAN (EWJ)

The Nikkei broke out to its highest levels since November 2018, and one has to think that carries some form of significance, in a mainly export economy.

Based on the setup in the Nikkei it seems possible that EWJ tracking ETF for Japan can continue to rise as well towards $59.72

German Bunds

German 10-Yields are also nearing a pretty big break out, and yields there look as if they can start to head back towards -20 basis points. Which I would view as positive towards the outlook for the German economy.

Overall, two key developments that would suggest that perhaps the outlook may be starting to slowly shift from a view of a worsening economy, to maybe something that is mildly improving.

S&P 500 (SPY)

S&P 500 futures are trading slightly lower today, but nothing that is significant. Not much has changed from yesterday with the critical resistance level at the S&P 500 at 3,000. A break out would send the index most likely back to its all-time highs at 3025.

Russell 2000 (IWM)

The Russell is in a very well defined trading range that has lasted for more than six months. The only level that matters at this point for the Russell is at 1,600. The index needs to clear that level of resistance; that is all that matters.

STOCKS

Roku (ROKU) 

I will be interested to see how Roku acts today. Resistance comes at $135, and that is a big test. Should the stock increase above that price, it is likely to send the stock higher to $145. A failure pushes it back to $122.

Netflix (NFLX)

Netflix looks as if it ready to go higher today; the pattern seems relatively bullish to me, with the potential for shares to rise to around $300. Earnings today after the close. Read my latest article on SA Marketplace – Why Netflix May Rise Following Results

Apple (AAPL)

Apple looks like it may ready to decline to around $229, nothing drastic; it just seems overbought.

Amazon (AMZN)

Amazon has been dead money since July. $1775 is a big level of resistance. We’ll see, I’m not making any bold calls on this one until I can get a better sense of direction.

Beyond Meat (BYND)

So what you think happens to Beyond Meat when:

That date of the prospectus was on May 3.

Perhaps it is the reason why the borrow rate to short the stock is through the roof.

A gap-fill to $100 may only be the beginning.

Have a good one!

-Mike

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