11/25/2019

STOCKS: ACAD, NFLX, NVDA, AMD, TWTR

MACRO: SPY, IWM

MICHAEL KRAMER OWNS IWM CALLS

MICHAEL KRAMER AND THE CLIENTS OF MOTT CAPITAL OWN ACAD AND NFLX

S&P 500 (SPY)

Stocks jumped on November 25 with the S&P 500 rising by approximately 70 basis points, closing at 3,132. The index has managed to clear support at 3,110 and was off to the race, setting a record high, and is now on pace to rise to 3,150. The only thing I can take issue with is that once again, the RSI is over 70. Otherwise, things are looking pretty good out there. PREMIUM CONTENT – The Break Out We’ve Been Waiting For Is Here

RUSSELL 2000 (IWM)

The big show was in the Russell index, which finally broke out after being range-bound since February. The index exploded higher today, rising by over 2% to close at 1,622, to its highest price since October 2018. This could be paving the way for a massive move higher, and game of catch-up. Consider that the Russell is up 17% this year to the S&P 500 gain of almost 25%. Should the Russell clear a minor resistance level at 1,640, it is likely to rise rapidly 1,700. I talked about this more today in the midday commentary. SMALL CAPS ARE BREAKING OUT

ACADIA (ACAD)

Acadia reported positive top-line results for its trial in patients with negative symptoms of schizophrenia. The stock is a bit confused at the moment because it looks like a top-line iffy P-value, just below 0.05. But when you dig through it, the higher dose had a strong p-value. ” A greater improvement in the NSA-16 total score compared to placebo was observed in the 53.8% of patients (n=107) who received the highest pimavanserin dose of 34 mg (-11.6 vs. -8.5; unadjusted p=0.0065, effect size = 0.34).”

The stock has been challenging a break out at $48; we will see what happens tomorrow and after the conference call. 

NVIDIA (NVDA)

Nvidia had a good day, and the upgrade from Morgan Stanley powered the stock higher, breaking the level of resistance I had been watching at $212, and proving me wrong. I’m not entirely convinced the stock is heading back to $236, but the odds are getting better.

TWITTER (TWTR)

Twitter continues to grind its way higher, and for now, the stock continues to be on a path sending the shares to $31.90.

NETFLIX (NFLX)

Netflix shook off the Wells Fargo downgrade to finish up on the day and over $315. Not that we are there yet, but if the stock gets over $320, the next level to look for will come at $330.

AMD (AMD)

AMD failed to rise above resistance at $40.20 today, so this will be a big test for the stock tomorrow. 

-Mike

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