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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May 14, 2019 – Stock Mentions: Nvidia, Micron, JD, Alibaba, AMD
- S&P 500 Futures +19 Points
- 10-Year 2.42%
- Dollar Index 97.26
- VIX 19.11
- Oil +$61.67
- China Shanghai -0.69%
- Hong Kong HSI -1.5%
- Japan Nikkei -0.59%
- South Korea Kospi +0.14%
- German DAX +0.48%
- UK FTSE +0.87%
Trading for May 14 –
Markets in Asia continue to fall on May 14, although South Korea managed to finish higher following a lower start. US stocks are pointing to a higher opening, but these are not the type of opening I like to see following a steep sell-off. It just affords the algo’s an opportunity to push the market lowers after the initial gap higher. I wouldn’t be surprised to see that happen today. The support level for the S&P 500 that I am looking for comes around 2.790, and for now, resistance comes at 2,836. (Premium Content: How China May Battle The Tariffs)
The biggest problem is that Algo’s are in control, and that is never a good thing. The daily movements have the fingerprints of the machines all over the place.
Micron will be one stock worth watching today at it is nearing support at $36.40. Additionally, the company has plenty of exposure to the trade war. So a move higher that sticks could offer some hope that a bottoming process is being put in place for the entire market.
Despite the stock market’s struggles AMD continues to look halfway decent, as the stock has held within the channel. My view on the stock is still positive, with the potential to rise to $29.40 and potentially $31.
Apple has been severely hurt, and it must hold support a $182 or risk a decline to around $174.
Alibaba’s stock is rising today, but I think the path ahead for the stock is too bearish. Plus the Chinese are now devaluing the yuan, it is not a good scenario for the stock, with $166 on the horizon.
JD is rising too and faces the same external issues as Alibaba. Resistance for the stock comes at $29.30.
Have a good one.
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.