Subscribe to The Free Market Chronicle and join the 2,668 subscribers getting it for FREE!
Technology Can’t Hold Rally, As Stock Prices Continue To Fade
Watching the market the past few days has been utterly exhausting, the twist and turns, the drama. Today’s rise in technology was no victory, especiallyย given that all the signs of strength melted into the close of trading, when stocks prices and the S&P 500 faded into the close.
[vc_row css_animation=”” row_type=”row” use_row_as_full_screen_section=”no” type=”full_width” angled_section=”no” text_align=”left” background_image_as_pattern=”without_pattern”][vc_column][vc_tweetmeme type=”follow” follow_user=”michaelmottcm” show_followers_count=”true” large_button=”true”][/vc_column][/vc_row] Join our 2,668 Daily Subscribers And Get This Commentary In Your E-Mail! Subscribe
[widget id=”wordads_sidebar_widget-18″]
It was just on November 21, when I wrote in the commentary that the S&P 500 could rally to nearly 2,700 by year-end. I figured it would happen by year-end and not in two weeks. From November 21 until Decemberย 4,ย the S&P 500 rose from 2,592 to 2,665, a gain of nearly 2.9 percent, a significant move in a matter of a few days.
[widget id=”wordads_sidebar_widget-18″]
It is pretty easy to see how the rotation has played over the past couple of weeks, nothing new here, from what we haven’t discussed before. The only difference, between today and previous days, is that the financials and discretionary stocks didn’t help to offset the losing sectors, helping to keep the S&P 500 in positive territory.
It could mean we are nearing the start of a rotationย back the other direction,ย or we can be setting up for a further decline in the S&P 500 back towards 2,600. Again, either way, none of this at thisย point from a broader market sense should be concerning.
But it is worth noting not all stocks will recover the massive losses seen,ย should the market begin to rise, or the rotation goes back into tech, which it will eventually. Some stocksย wereย indeed stretched from a fundamental point of view.
[widget id=”wordads_sidebar_widget-18″]
Semi Stocks
We will continue to focus on these for a bit longer because this is where the action has been and it gives us some important clues.
Nvidia
Nvidia shares failed to rise through resistance today around $191.50, watch that level. Ifย the stock fails again there, the stock is not going higher, but lower.
[widget id=”wordads_sidebar_widget-18″]
Micron
Micron has an unusual setup, with what looks like a double bottom a bit below $40, but then the stock failed to break through resistanceย at $42, a rise above $42 is needed to avoid a further move lower.
Broadcom
Broadcom is coming back to support around $259; it is a big test.
[widget id=”wordads_sidebar_widget-18″]
Sign-up for our premium content on Seeking Alpha Market Place –ย “Reading The Markets”ย and a get Two Week Free Trial Period
Premium Content: Benefits include the ability to reach outย to Mike with questions through a chat room, direct message, or comments.ย
We will respond to questions in short order and will respond to questions with full-post or video segment, just not one or two-word answers.ย
Just $40 per Month
Tech Wreck V12.4.17 – More Room Too Fall
Why Tesla Could Double, And Nvidia Could Get Cut In Half
Why The S&P500 Could Melt-Up Into Year End
[widget id=”wordads_sidebar_widget-18″]
Other Key Stocks To Watch
Amazon
Amazon shares at had a busy day, testing support at $1122, then pushed back above $1139, and closing above it. A potentially positive sign for Amazon.
Tesla
Tesla shares can’t break out, and while there is firm support around $303, there also seems to be a wall of seller around $307. A rise above $307 would be a huge positive, while a fall below $303 would be bad.
[widget id=”wordads_sidebar_widget-18″]
Banks
Here is a perfect example of much the Banks hadย risen in the past days, on November 28 JP Morgan was trading at $98 and reached a high of over $108 by December 4, that is a rise of 10 percent in just 5 trading days! JP Morgan was only up about 13 percent before this move.ย The banks have seen huge moves.
That’s going to be it for today.
Free Articles Written By Mike:ย
Why Visa and MasterCard May Have Fallen Too Far
Biotech Stocks May See a New M&A Wave in 2018
Why Tesla’s Stock Could Rally Into Yearend
Disney’s Stock Advance Could Be Just The Beginning
Netflix Shares Could Be Headed Lower
Stock Prices Plunge On Emotion, Not Reality
Nvidia, Micron, and Lam May Not Have Bottomed Yet
Why Gilead’s Highly Touted Stock Has No Upside
Why Under Armour Could Fall 65%
How Tax Cuts Could Boost Home Depot’s Stock
Nvidia Could Fall 60% After Bubble Bursts
Why Intel and Broadcom Are Still Cheap
Apple Will Rise 17% by June, Options Trades Indicate
Why Roku’s Rocketing Stock May Flame Out
Verizon’s Stock May Rise More Than 15% in 2018
Biotechs Celgene, Biogen May Rally Through Yearend
AMD May Have Bottomed, Stock Set to Rise
Macy’s, JC Penney Face More Declines, Options Trades Suggest
Why Tesla’s Plunging Stock Price Conceals A Bright Future
Why Disney and Comcast Should Fear Netflix
We offer a lot of great commentaries all week talking about the major andย relevant market events. Be sure to subscribe to get all our free commentaries sent directly to your inbox or follow us on Twitter.
Join our 2,668 Daily Subscribers And Get This Commentary In Your E-Mail! Subscribe
-OR-
[vc_row css_animation=”” row_type=”row” use_row_as_full_screen_section=”no” type=”full_width” angled_section=”no” text_align=”left” background_image_as_pattern=”without_pattern”][vc_column][vc_tweetmeme type=”follow” follow_user=”michaelmottcm” show_followers_count=”true” large_button=”true”][/vc_column][/vc_row]
Michael Kramer and the Clients of Mott Capital own shares of $TSLA
Mott Capital Management, LLCย 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.ย Upon request, the advisor will provide a list of all recommendations made during the past twelve months. Past performance is not indicative of future.
ยฉ 2017 Mott Capital Management, LLC.ย Use, publication or reproduction in any media prohibited without the permission of the copyright holder.
Tags: #sp500 #chipmakers #micron #nvidia #news #stocks #tesla #amazon #disney $JPM