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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DECEMBER 11, 2019
STOCKS: NFLX, GE, HD, TSLA
MACRO – SPY, FED
MICHAEL KRAMER AND THE CLIENTS OF MOTT CAPITAL OWN NFLX AND TSLA
- S&P 500 Futures -1.5
- US 10-Year 1.82%
- VIX 15.87
- Oil $58.98
- Dollar Index 97.51
- Japan -0.08%
- HK +0.79%
- China +0.24%
- KOSPI +0.36%
- UK -0.14%
- DAX +0.15%
Reading The Markets Premium Content from December 10:
- Subscriber Mailbag- Following Analyst Rating And Price Targets
- Looking For Signs Of A Market Rebound
- Gap Filled, Economy Improving, Markets Move Up
It will be a somewhat busy day with US CPI this morning, and the FOMC rate decision this afternoon followed the press conference at 2:30. The Fed meeting should be uneventful, with interest rates expected to remain unchanged.
There may be some questions regarding the repo market and liquidity, the state of the balance sheet, and its expansion. One final thing that may come in to focus is the Fed’s forecast for GDP, Inflation outlook, and future longer-term rate outlook as part of its dot plot.
S&P 500 Futures
S&P 500 futures are pointing to a minor decline, and 3,140 continues to be near-term resistance, with stronger support around 3,110. It seems as if investors are just in the mood to wait out the Fed, and perhaps the decision on tariffs with China.
I’m not sure that new tariffs will hurt the market all that much, they haven’t too this point, and there is no evidence to suggest that are causing higher prices or even slowing the economy all that much.
Piper Jaffray is out with some positive commentary on Netflix today, following yesterday’s negative analysis from Needham. Piper notes the potential upside for the US and international subscriber growth in the fourth quarter. The analysts maintained its $400 price target and Overweight rating.
GE shares have pulled back in recent weeks, and the stock will need to hold support at $10.75 to avoid further declines.
According to reports, Tesla plans to build 500,000 cars per year out of its gigafactory 4 in Germany. The stock continues to work its way higher towards $360.
Home Depot (HD)
Home Depot is falling today, after the company forecast 2020 sales growth beloe expectations. The stock is nearing support at $210.
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.