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It’s Monday! February 11 😛
Michael Kramer and the clients of Mott Capital own Tesla, Mastercard, Netflix
- S&P 500 Futures +7.5 points
- US 10-Year 2.65%
- Oil $52.20
- VIX 15.95
- Dollar Index 96.70
- Japan Nikkei Closed
- Shanghai +1.36%
- Hong Kong Hang Seng +0.71%
- South Korea KOSPI +0.17%
- UK FTSE +0.4%
- German DAX +0.70%
- German 10-Year Bund 0.11%
- Japan 10-Year JGB -0.04%
Global Growth Indicators
- Copper -0.62%
- Silver -0.72%
- Platnium -1%
- US/China trade talks start today
- US GDP – Estimates for 2.6%
- China’s Lunar New Year spending growth slows to a decade low.
- UK Industrial Production -0.9% vs. estimates for -0.4%
- UK GDP +1% vs estimates of +1.4% y/y
The Shanghai composite was up last night and now is approaching a huge breakout. The index closed just below technical resistance at 2,654. An increase above this level of resistance sends the composite about 7% higher to 2,825.
Hong Kong (EWH)
Hong Kong Hang Seng is also approaching a significant breakout. Should the HSI rise above resistance at 28,160, it could go on to rise to almost 29,000.
But Europe is a different story because the German DAX is failing a critical resistance level at around 11,030. But as we can see the RSI did break out of a nasty downtrend, and I would expect that the pullback in the DAX is not likely to last.
S&P 500 (SPY)
S&P 500 is pointing to a higher opening as well; no surprise, right? We have talked about this since the middle of last week. The significant level of resistance sits at 2,735, with a gap that needs to be filled up there.
Russell 2000 (IWM)
Russell 2000 has found meaningful support around 1,492, and now resistance rests up at around 1,520.
Tesla shares are rising in the pre-market after Canaccord upgraded the stock buy from hold, with a $450 price target. Additionally, Wedbush is positive on the stock this morning. The stock still looks as if it is headed towards $333, where it will face a downtrend and a resistance level. Bloomberg is modeling weekly Model 3 production at 5,186 per weeks. So much for weak demand.
Nvidia’s price target was reduced at Citigroup to $200 from $244. Even that price target seems way too high. The average price target on the stock according to YCharts is $181. That is a gain of 22% from its current level. There will likely be more price target reduction in the days leading up to the result.
I think this one is heading to $139 ahead of results.
Amazon is looking to open slightly higher. But like how $1,620 offer all those weeks of technical support, it will now serve as resistance.
Square is nearing resistance around $75. I had thought that the stock might fall to around $66. But it looks I may be proven wrong. If the stock can rise above $75, it has room to increase to about $83.
Mastercard has nearly recouped all of its losses from the end of 2018. It looks like it on pace to reach its highs around $223.
Netflix is rising this morning above $350, and $360 is a significant level to watch. A rise above $360 triggers that rise to $380 we have looked for.
Good Luck today, see you later!
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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.