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The Algo’s May Take The Stock Market Higher on December 17

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Good Morning Today is December 17

Recap of International Trading:

  • Japan was  +0.62%
  • Hong Kong Hang Seng Index -0.03%
  • China Shanghai Comp. +0.16%
  • UK FTSE -0.35%
  • Dax -0.33

FED Rate Hike Watch:

According to the CME, there is now a 78% chance of a rate hike in December, that is up from 76% Friday.

Currently, the market is pricing in a 37% chance there is no rate hike in 2019 and a 37% chance of just one rate hike.

Quiet Start to Week

Relatively speaking it is a quiet start to the week with the future pointing to a flattish opening. There is an unfilled gap that was created by Friday’s steep sell-off, and a flattish opening may give the stock market and the ALGO’s a chance to start working to refill that gap. It is worth noting that the S&P 500 did not fall below the December 10 low of 2,583.  All of this would suggest we could see the S&P 500 work its way higher back to 2,650.

spx,sp500, december 17,

Semiconductor (SMH)

The Semiconductor ETF will be a key to watch, and the group has stabilized in recent weeks. The SMH has diverged from the broader index, which I continue to think is a good thing.

semiconductor,smh

Russell 2000 (IWM)

I worry about the Russell 2000 because I think that still needs to fall a bit further, perhaps to 1,394. I would grow even more constructive should the Russell 2000 bounce off that support level and Semiconductors continue to stabilize.

russell

Goldman Sachs (GS)

Goldman Sachs will likely weigh today off the fresh headlines noted above. The stock is now trading right around technical support at $171. Should it fall through that support level it is likely on its way $158.65. goldman sachs

Apple (AAPL)

Apple will continue to be a focus stock as well, as support need to hold around $164. It is the line in the sand and is an important support level.

apple, aapl

Facebook (FB)

As we have noted previously Facebook continues to show positive momentum. $148 continues to be resistance, but a rise above that price may send the stock on towards $158.

facebook, fb

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Johnson & Johnson (JNJ)

Johnson & Johnson fell sharply on Friday on the Reuters report on Talc Powder. It was a big reason the stock market was down so sharply. The stock may see a rebound today, but resistance sits at $136.75.

johnson and johnson

Healthcare (XLV)

The healthcare names may come under pressure today as well after a Judge ruled Obamacare unconstitutional now that the penalty has been removed. The XLV ETF closed at support around $89 after JNJ fell sharply. This news late Friday is likely to weigh further on the group, and should it fall support comes around $86.37.

XLV, algos, algo's, algo

Good Luck

-Mike

Photo Credit via Flickr

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 results.

December 17, apple, facebook, goldman sachs, jnj, semiconductors, algo, algo’s

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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.