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Technology Stocks Continue To Rule The Land: Monster Week In Review

The first week of 2018 was no disappointment with stock starting off precisely where they left off 2017. To know displeasure, only four of the top 25 stocks in the S&P 500 were lower: Intel ($INTC), AT&T (T), Verizon ($VZ), and Procter & Gamble ($PG). While Facebook ($FB), Alphabet ($GOOGL), and Amazon ($AMZN) were all up by over 5 percent.

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Technology Stocks

Technology stocks continue to lead the charge, with the “FANG’s” consisting of the top 3 performing stock in the S&P 500. But when we look deeper into the technology sector stocks, we can see it was the chip stocks, Micron ($MU), Nvidia ($NVDA), and Applied Materials ($AMAT) that were the leaders, with PayPal ($PYPL) also putting up a solid week.

Micron

Micron shares look like they may have finally turned for the better after reporting solid results back in December. We can see in the chart below the gap that we had written about a couple of weeks ago did indeed get filled, while the lows around $40 were successfully tested. With the stock also taking out the post-result highs, Micron appears well positioned to make a run towards $50.

If for some reason this stock doesn’t successfully make it back to $50, I would suspect that the market is trying to send us a message about its faith in Micron’s ability to consistently grow earnings and keep margins healthy. Continue to watch how this one trades this coming week.

Nvidia

Nvidia made a huge come back this past week, with shares nearly touching its all-time highs around $218. The stock failed two times this past week to move above $219, and that could be a problem for Nvidia. $219 is critical and the stock will need to break through that level or a I fear a re-test of the $185 level.

IBM

IBM had a solid week with shares of the stock climbing by nearly 6 percent. Shares are nearing a big breakout at $162.65. If shares can keep their forward momentum, I can see a rally taking it to downtrend line around $175. I don’t think IBM has much to offer above and beyond that price.

The company to this point has not solved its revenue issue, and legacy revenue is still the dominant supplier of that income.

IBM Annual Revenue Estimates data by YCharts

Healthcare Conference

This week kicks off the JP Morgan Healthcare conference, and that means there should be plenty of news coming out biotech stock group. Biogen ($BIIB) was the best performing name in the group, with its shares jumping by nearly 8 percent to start the year.

Incyte

Incyte shares from a technical point look as though they may have bottomed. They finally appear back to where they started 2017 and filled the gap.

That is going to be it for today, back tomorrow with a look at the week ahead.

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Michael Kramer and the Clients of Mott Capital own shares of VZ

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.

Tags: #xlk #technology #stocks #nvidia #micron #incyte #ibm