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Tesla and Biotech’s Have Soared, While Chips and Tech Still Struggle
The past couple of trading sessions have seen shares of Tesla rise from roughly $310 to $340, while biotechs have jumped from $102 to $107 on the IBB ETF. Meanwhile, tech and chips have stabilized but are not out of the woods just yet.
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S&P 500
Stock prices continue to rise, with the S&P 500 getting closer to 2,700, and fast approaching the box we targeted just a few short weeks ago.
The S&P 500 is coming close to move above the February 2016- Brexit trendline we laid well over a year ago. The two-hour chart below shows how that trend line became resistance a while back, and while the S&P 500 has been able to trade right along, has been unable to break above it. Should the S&P 500 break above that trendline, my guess would be we see a meaningful acceleration in the price action of the market.
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Tech
Tech shares have been able to retrace much of their losses from last week, but have not entirely escaped into safety. The downtrend in the Technology ETF ($XLK) is still very much present, and only a rise above $64.80 would be a sign of the clear path higher.
Alphabet ($GOOGL) shares like the broader ETF have recovered much its losses but again has failed to break to new highs.
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Apple ($AAPL) shares are also still in a downtrend as well.
Microsoft shares have moved back towards all-time highs.
While Cisco ($CSCO) has also been able to continue to grind higher.
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 Semiconductors
One group that has not even come close to recovering is the semiconductor sector, with stocks like Nvidia ($NVDA), Micron ($MU), and Skyworks ($SWKS), still trying to get some upward momentum. Micron is the only stock that has started trending higher, but then shares of the failed miserably at resistance at $45.
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Tesla
One stock that has broken out and started to shows signs of life is Tesla, with shares trading back to nearly $341 just over the past couple of sessions.
A move above resistance around the $341, could send shares materially higher, perhaps back into the $370’s. Remember, Tesla will report delivery numbers three days after quarter end, and all eyes will be on the model 3. Additionally, the semi-truck reservations have been picking up steam as well, with Pepsi being the latest to order 100 trucks reportedly.
Read: Why Tesla’s Stock Price Could Double in 2018
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Biotech
The biotech group has also had a big rally, with shares moving once again back to resistance at $107.
Shares of Celgene ($CELG) have continued to move higher and are now in the process of filling the gap, which could see shares of the stock rise back to nearly $120.
Biogen ($BIIB)Â appears headed back towards $355.
That is for today. Lots of material to cover, but had to play catch-up.
Back tomorrow.
Watch my interview with Cheddar
Top 3 Predictions for the 2018 Market
Seeking Alpha Author Michael Kramer joins Cheddar to give his top three predictions for 2018 market trends. The first one: Tesla will hit a $100 billion market cap! He explains why he’s comparing the auto company to Amazon in his analysis and prediction.
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Michael Kramer and the Clients of Mott Capital own shares of $TSLA $GOOGL $SWKS
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.
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Tags: #sp500 #technology #biotech #tesla #celgene #biogen #alpahbet #microsoft #cisco #apple
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Charts used with the permission of Bloomberg Finance L.P. This report contains independent commentary to be used for informational and educational purposes only. Michael Kramer is a member and investment adviser representative with Mott Capital Management. Mr. Kramer is not affiliated with this company and does not serve on the board of any related company that issued this stock. All opinions and analyses presented by Michael Kramer in this analysis or market report are solely Michael Kramer’s views. Readers should not treat any opinion, viewpoint, or prediction expressed by Michael Kramer as a specific solicitation or recommendation to buy or sell a particular security or follow a particular strategy. Michael Kramer’s analyses are based upon information and independent research that he considers reliable, but neither Michael Kramer nor Mott Capital Management guarantees its completeness or accuracy, and it should not be relied upon as such. Michael Kramer is not under any obligation to update or correct any information presented in his analyses. Mr. Kramer’s statements, guidance, and opinions are subject to change without notice. Past performance is not indicative of future results. Neither Michael Kramer nor Mott Capital Management guarantees any specific outcome or profit. You should be aware of the real risk of loss in following any strategy or investment commentary presented in this analysis. Strategies or investments discussed may fluctuate in price or value. Investments or strategies mentioned in this analysis may not be suitable for you. This material does not consider your particular investment objectives, financial situation, or needs and is not intended as a recommendation appropriate for you. You must make an independent decision regarding investments or strategies in this analysis. Upon request, the advisor will provide a list of all recommendations made during the past twelve months. Before acting on information in this analysis, you should consider whether it is suitable for your circumstances and strongly consider seeking advice from your own financial or investment adviser to determine the suitability of any investment.
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