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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Michael Kramer and the clients of Mott Capital own Acadia, Netflix, Tesla
S&P 500 (SPY)
Stocks rose on March 1 by about 70 basis points. The rise today was pretty much what I expected, with a move back over 2,800. The big test will come around 2,812, but my expectations are for that to level to be taken out by early next week, perhaps even Monday. Again a rise above 2,812, like pushes the S&P back to 2,870.
The NASDAQ is also closing in technical resistance at 7,625.
The Russell is trying at 1,592
Biotech ETF (XBI)
The biotech ETF XBI already broke out and is now on track to move towards $97.90.
Amazon’s stock finally started to lift, and again I still see this one rising to around $1,770. I’m not sure what their plan is with these supermarkets. It is a very low margin business for a company that already struggles with its margins. If not for AWS Amazon’s earnings would be a fraction of they are now. I wrote for Investopedia: Amazon’s non-cloud businesses had an operating income of just $5.1 billion, and an operating margin of only 2.4%. And then I wrote…The cloud represents nearly 60% of Amazon’s total operating income of $12.4 billion in 2018, despite sales representing only 11% of the company’s total revenue.
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JD continued to rise today and is butting up against some resistance at $29.35, which we knew was there. But for now, the stock is struggling.
Tesla up, Tesla down. It is in the same spot it finished the last week. All that noise for nothing. Nothing changes except that the uptrend continues to hold firm.
The good news for Netflix is that it fell to $355, and held.
Acadia tested $27.20 today, but if the XBI keeps going up, then this will too.
More this weekend, plus the outlook for the week on Sunday!
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.