The FANG Stocks May Be Back and While The Banks Stocks Fall

The FANG Stocks May Be About To Surge, While The Bank Stocks Fall

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MICHAEL KRAMER AND THE CLIENTS OF MOTT CAPITAL OWN SHARES OF NFLX, GOOGL

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S&P 500 (SPX)

Stocks gave back a midday surge after the dovish sounding (at least to me) Fed Minutes. Although I admit, I didn’t have time to read the minutes,  just from what I heard on TV and what I have read in recaps. The S&P 500 did fail at resistance around 2,750 today, finishing the day lower at by 25bps. Am I concerned? Kinda/Sorta. Overall the RSI is rising and trending higher, and I think that means the market continues to trend higher.

SPX

Of course, the significant element of risk is the trade discussions this weekend between Trump and Xi. What happens is any guess.

Russell 2000 (RUT)

The Russell 2000  also managed to fail at resistance around 1,533.  Not a good sign that the two indexes failed at resistance.

russell 2000

Biotech (XBI)

The Biotech ETF (XBI) managed to stay in breakout territory above the downtrend.

xbi

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Facebook (FB)

The good news for Facebook, it got to $140. The bad news for Facebook, the stock failed at resistance which was at $140.  It may go either way from here; I’m not going to pretend as if I know. Resistance is around $145, at the down trend. Support is at $133. I’m not even guessing. Sorry.

But if Facebook can break $140, then it may serve as a great sign that FANG may be back! You will see.

facecbook, fb

Amazon (AMZN)

Amazon has cleared its downtrend, and I think that means the stock is on its way to $1760.

aamzon, amzn

Netflix (NFLX)

Netflix did break out rising above $285, and it is likely on its way to $300.

nflx

Alphabet (GOOGL)

Alphabet also cleared a downtrend, and I think this one as room to rise to $1,130.

googl

Boeing (BA)

Boeing has surged lately. Could it rise to $360? Sure. But the chart overall looks terrible, and that RSI is trending the wrong way.

ba

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Banks

The one group that doesn’t look good? The Banks!  The dovish Fed surely isn’t going to help the long-end of the yield curve rise. That means the yield curve flattens and the bank stocks get squished.

Citigroup failed at resistance today.

citigroup, c

JPMorgan continues to trend lower.

jpm

Morgan Stanley – the same.

morgan stanley

And well, Goldman Sachs. UGH!

goldman sachs

I’d hate to say it, but they may still have even further to fall.

Night!

-Mike

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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

SP500, RUSSELL, FACEBOOK, AMAZON, NETFLIX, GOOGLE, FANG, BANKS

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Charts used with the permission of Bloomberg Finance L.P. 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.