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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 $107 on the IBB ETF. Meanwhile, tech and chips have stabilized but are not out of the woods just yet.
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Stock prices continue to rise, with the S&P 500 getting closer to 2,700, and fast approaching the box we targeted just a few short weeks ago.
The S&P 500 is coming close to move above the February 2016- Brexit trendline we laid well over a year ago. The two-hour chart below shows how that trend line became resistance a while back, and while the S&P 500 has been able to trade right along, has been unable to break above it. Should the S&P 500 break above that trendline, my guess would be we see a meaningful acceleration in the price action of the market.
Tech shares have been able to retrace much of their losses from last week, but have not entirely escaped into safety. The downtrend in the Technology ETF ($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.
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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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.
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.
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) appears headed back towards $355.
That is for today. Lots of material to cover, but had to play catch-up.
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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