Home » The Bull Rides Again As Global Stocks Break Out From Summer Doldrums

The Bull Rides Again As Global Stocks Break Out From Summer Doldrums
Stocks are breaking out around the world on September 4, and now the US may be the next market to bust through August resistance.

The Bull Rides Again As Global Stocks Break Out From Summer Doldrums

This column is my opinion and expresses my views. Those views can change at a moments notice when the market changes. I am not right all the time and I do not expect to be. I disclose all my positions clearly listed on the page, and I do not trade my account on the stocks spoken of in this column unless fully disclosed. If that does not work for you stop reading and close the page. Do not bother me or harass me.

Otherwise, enjoy the column!

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September 4  – Stock mentions: SPY, EWH, FXI, EWY, EWG, AMZN, AAPL, MU, TSLA

Michael Kramer and the clients of Mott Capital own AAPL and TSLA

US Markets

  • S&P 500 Futures +27 points
  • US 10-Year 1.48%
  • VIX 18.24
  • Oil $54.29
  • Dollar Index 98.67

International Markets

  • KOSPI +1.16%
  • Hong Kong +3.9%
  • Shanghai +0.93%
  • Nikkei +0.12%
  • Germany +1.23%
  • UK +0.64%

Stocks in Asia jumped following on headlines that HK is withdrawing the extradition bill that sparked the protest in months ago. 

Hong Kong (EWH)

The result is that Hong Kong rose by almost 4%, and more importantly, rose above the top of the trading range the index has been in since, well, the beginning of August.

Hong Kong, HSI

Kospi (EWY)

South Korea KOSPI also broke out, rising above the top of the range from August, rising above 1,980.

KOspi

Shanghai (FXI)

Shanghai also broke out overnight rising above resistance at 2920, and the top of the range since August.

Shanghai, china

UK

Stocks in Europe are rising too after Boris Johnson lost a critical vote in parliament. It may result in a general election while decreasing the odds of a no-deal Brexit. As a result, the UK FTSE is breaking out rising above the top of the range since, well, the beginning of August. Notice a trend here?

UK FTSE

Germany (EWG)

Germany DAX is also rising sharply, also breaking out.

germany, dax

US Markets

S&P 500 (SPY)

That leaves the US markets has the only ones that have yet to take out their August highs. Based on the patterns above, it would seem likely the break out happen here in the US happen, and probably today. The S&P 500 futures show it currently right at resistance at 2935.

S&P 500, spx

Amazon (AMZN)

Amazon is one of the stock that is rising this morning, jumping above $1800, something it has struggled to do. Additionally, the next level would come at $1830, and then $1900.

Amazon, amzn

Apple (AAPL)

Apple is also rising this morning, and rising above $209.50 opens the door to a rise of roughly $214.

apple, aapl

Tesla (TSLA)

Tesla broke the downtrend the other day, and now shares continue to look healthy, as the story continues to evolve into a china growth story of all things. The potential is still there for an increase to $250.

tesla, tsla

Micron (MU)

Micron is breaking out today, rising above its August resistance levels at $45.50. It sets up a jump to around $48.

Micron, mu

German 10-year

In the meantime, look at German 10-Year yields rising towards negative 60 basis points.

germany 10-year

US/German Spread

Meanwhile, the spread between US and German 10-years is plunging once again and heading towards 2%.

spread

Dollar (DXY)

Now, the dollar is weakening.

dollar index

Enjoy the day; suddenly, the glass is looking a little more half full.

-Mike

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.