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.
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The Day in Trading for AMD, JD, Sirius, Disney, Amazon, Square, & Intel
MICHAEL KRAMER AND THE CLIENTS OF MOTT CAPITAL OWN: DIS
S&P 500 (SPX)
The S&P 500 pulled back some on Monday, dropping by about 40 basis points to 2,919. Support around 2,915 has been firm since breaking out late last week. At this time, the trend still seems firmly higher. But again, as we noted last weeks, there are still some critical areas we need to watch mainly in oil and rates.
I talk more about this potential risks and sectors of concern in my last subscriber video: Market Trends Remain Strong
AMD had another strong showing today after RBC initiated coverage with an Outperform and $40 target. But take notice where AMD’s stock stopped rising again? Yep, right around resistance at $32.30 and the downtrend. It is kind of interesting to see how the stock continues to struggle around those prices.
Update as of 6:11 PM on 9/24- The stock did manage to close around $32.60 on the day, above the downtrend. But I want to give it a day or so to see if holds.
The China stocks continue to get rocked, with JD now falling below $24.50. I think the odds are growing for this stock to test to $22.30 in the not to distance future.
SiriusXM, a stock we do not talk about much here, has finally taken the plunge to buy Pandora. It seems like two years ago, this was a rumor every day, and now it is finally done. I’m not surprised one bit by the news, Sirius needs a presence on streaming, the world is moving that way. I say that because I have little kids, and most of the time when going on long road trips in the car, we don’t listen to our satellite radio, the kids are streaming YouTube on the phone, or Netflix. The market does not like the deal, with SIRI falling by 9%.
Technically the stock isn’t broken, but that doesn’t mean it can’t fall to $6.
The market seems pleased that Disney did not buy Sky, with shares rising by about 2%, Comcast fell by over 6%. It works out nicely for Disney. I am happy they didn’t buy SKY for one, I think they can use that money for better things in the future. I also believe that international growth will not be a challenge for Disney’s direct to the consumer product. If Disney plays its cards right, perhaps they capture Hulu from Comcast, and then by the remaining 10% from AT&T.
For the first time in about two years, I’m now drawing in a new uptrend for the stock. Hopefully, it will last.
Amazon continues to trend lower, and at this point, $1840, seems to be coming to play at some point soon.
Did you see Square today? It bounced right off our support level around $82, jumped higher, back to the downtrend, and guess which way it is heading now? Yep, lower along the downtrend. Amazing stuff to watch, the algos at work!
Intel is amazing too. Look at this chart. The stock fell to downtrend, and bounced right off it! At least, for now, the break out is holding steady.
How many times do you see a stock go up 300% in a day? Not many. The company reported positive results from a clinical trial for a drug made of Fish Oil to lower the risk of cardiovascular events. I’m not surprised, I take my Nordic Naturals Omega 3 every day, and it has lowered my cholesterol. Now Amarin’s suppose to be a more pure form, with just the EPA, where Nordic Naturals has EPA and DHA. But there you go, up 305%.
That is going to be it!
Michael Kramer is the Founder of Mott Capital and the creator of Reading the Markets.