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.
Otherwise, enjoy the column!
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DECEMBER 19, 2019
Stocks: CSCO, MU, T, AMZN, TSLA
Macro: SPY, Rates
- S&P 500 Futures – Flat
- 10-Year 1.95%
- Dollar Index 97.32
- VIX 12.55
- Oil $60.97
- Japan -0.29%
- HK -0.30%
- China Flat
- KOSPI +0.08%
- Germany -0.32%
- UK +0.21%
MICAHEL KRAMER AND THE CLIENTS OF MOTT CAPITAL OWN TSLA, CSCO
S&P 500 (SPY)
S&P 500 futures are pointing to a higher opening on December 19. Once again, the index will attempt to push higher and break free of its recent sideways trading zone. The chart for the futures shows how the S&P 500 continues to hover below 3,200. The trend is still higher, and it seems as if today could be the day that we final push above it.
10-Year rates are very close to surging much higher. The current rate is around 1.95%, and the chart shows it is butting up against resistance at 1.95%. A push above this level sends the 10-year up to approximately 2.15%.
Cisco was upgraded to Overweight from Equal Weight with a $53 price target at Barclays. The stock continues to work its way higher, filling the gap, and could move towards $48.
Micron is trading higher above $55 this morning, following its results. Revenue guidance comes in better than expected, while earnings guidance was lighter — this a sign of margin weakness for the business. Still, investors appear to be looking ahead at the potential for a better DRAM and NAND environment. The next significant level of resistance comes around $58.
AT&T has been slowly grinding higher and recovering from its mid-November plunge. If the stock can get above $39.25, then a push to $41.80 seems possible.
We will continue to watch Tesla today; the stock surged to an all-time yesterday. This has to be to one the turnaround story of 2019. Shares hit a low of about $177 on June 3. Since that time, the stock has more than doubled. The region of $385 to $390 should act as a strong support region going forward. Premium content – get the first two-weeks free when you sign-up Tesla’s Stock May Continue Higher On Bullish Change In Trends
Amazon continues to go nowhere, and until it gets over $1850, that is likely to remain the case.
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.