December 12, 2019

Stocks: TSM, GE, SBUX, ROKU, CSCO

Macro: SPY

MICHAEL KRAMER AND THE CLIENTS OF MOTT CAPITAL OWN CSCO

US Markets

• S&P 500 +4 points
• US 10-Year 1.8%
• Dollar Index 97.15
• Oil $59.12
• VIX 15.08

International Markets 

• Japan +0.14%
• HK +1.31%
• China -0.30%
• Korea +1.51%
• UK +0.32%
• Germany +0.02%

Headlines

It will be another busy day of events with the UK general elections and an ECB rate announcement. Plus, we will get another round of economic data in the US, including the producer price index. There are also reports that President Trump is having a high-level meeting on Trade today as well among his advisors. 

S&P 500 (SPY)

S&P 500 future reached a high of around 3,150, but have since given back some this morning. This 3,150 region has been acting as resistance since the end of November. It is proving to be a difficult spot for the S&P 500 to push through. There does appear to be a clear uptrend that has formed since December 10, and I think that means the S&P 500 pushes through the 3,150 and continues on to 3,200.

Taiwan Semi (TSM)

Taiwan Semi is breaking out of its trading range and rising sharply today after reporting a 9.7% y/y increase in November revenue. It is likely a positive read through to the entire semiconductor group.

Starbucks (SBUX)

Starbucks is trading higher today after JPMorgan upgraded the stock to Overweight from Neutral and a $94 price target. The chart has turned higher and could continue to rise until hitting resistance around $91.40.

GE (GE) 

GE is rising today after getting upgraded by UBS to Buy from Neutral. I noted yesterday that GE was in a place where it needed to bounce, and that is what has happened. The stock could probably push higher towards $11.50. 

Cisco (CSCO) 

Cisco is also rising today, and I noted yesterday in an article I was seeing bullish options bets being placed, and the chart indicated the stock could rise to around $45.70.

Roku (ROKU) 

Roku has been struggling at resistance at $150; we’ll see today if it can generate some momentum back or not.

Have a good one!

-Mike

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