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Technology Stocks Are Getting Ready To Go Higher, Plus Much More

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Technology Stocks Are Getting Ready To Go Higher

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There were a couple of positive developments today. First, the S&P was higher, by 83bps, and closed at 2,663. Next, the close above that pesky resistance level at 2,660 we had been watching. Today also established that 2,672 is now the next resistance area. The last two times the S&P 500 got to 2,672 it was followed by two nasty downdrafts, resulting in a fall of about 3 percent back to 2,600, each time. A rise above 2,672 would be an immensely positive sign for a continuation of the most recent rally.

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S&P 500

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Technology Stocks

A new trend line was born today for the technology sector, XLK, and for the first time in a while, the technology sector has a direction other than down. $67.10 continues to be a resistance level, but should it rise above resistance to say $67.50 it gives the ETF a perfect shot of filling the gap at $69.25.

technology

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Nvidia

Nvidia looks to be heading back towards $245.

nvda

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Consumer Stocks

Discretionaries are continuing to struggle after hitting resistance around $102.

consumer

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Amazon

For right now, Amazon maybe the only stock capable of lifting the entire group. First, because it has a nearly 20 percent weighting in the ETF, second because today it closed above $1,440, a mild positive. There are still plenty of hurdles for Amazon to overcome; the most obvious is that the stock needs to stay $1,440.

amazon

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Netflix

Netflix appears to be setting up for a breakout towards $322. The company reports results on Monday after the close; I will have a closer look at it over the weekend.

nflx

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BANKS

Tomorrow will be a big day for the banks, with JP Morgan, Wells Fargo, and Citigroup all reporting before the open.

JP Morgan is slightly breaking out

jp morgan

But the setup in Citi doesn’t look nearly as strong.

citigroup

If the banks want to be a leading sector in the stock market, tomorrow will be the day they can prove they are capable are leading or not.

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Acadia

Why is Acadia not back to $22 already, after the BS story from Monday? I was shocked to see the FDA made a statement on it.

The stocks downdraft proves once again you can’t believe everything you read, and that understanding what you are invested is so extremely important.

At this point, I’d be happy if we filled the first gap at $22, but the one at $30 would be a whole lot better.

acad

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Tesla

You know, I was gonna end after Acadia, but then I saw this stupid analyst comment that Tesla is going to fall $84, because, get this, “increasing competition.” Are there no cars sold today? Is Tesla the only automaker in the whole world? Of course not.

I’m sorry, but Tesla has competition today and has had competition since the moment Elon Musk thought about making a car. A car is a car, and the thought that because Audi or Mercedes is going to start making an electric car, people are suddenly going to stop buying Tesla’s seems crazy to me. If someone wants to buy a Mercedes, they can get one right now. I do not think the world has become entrenched enough in the thought process of buying only green cars, that everyone is now running to Tesla. Besides, just how green are electric cars? The energy to power the battery needs to come from somewhere.  They are undoubtedly better than gas but come on; you still need the energy.

By the way, once again, the proof is the Chevy Bolt, how many cars did Chevy sell so far in 2018? A crappy 4,375.  How many in 2017 total? 23,297. Btw, they cost nearly 3 times less than a Model S, so why not 3 times the sales if the electric part matter so much?

People are buying a brand; they aren’t buying it because of the engine or motor type.

Good luck tomorrow

-Mike

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Tags: #stockmarket #sp500 #amazon #tesla #acadia #nvidia #netflix #jpmorgan #banks

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