Home » The Gap In The S&P 500 Is Still Waiting To Be Filled

The Gap In The S&P 500 Is Still Waiting To Be Filled
Stocks stalled out on October 14, but there is still that giant gap at 2,940 that is just waiting to be filled.

The Gap In The S&P 500 Is Still Waiting To Be Filled

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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OCTOBER 14 – STOCK MENTIONS: SPY, TSLA, SHOP, BYND, AMD, NVDA

MICHAEL KRAMER AND THE CLIENT OF MOTT CAPITAL OWN TSLA

MACRO

It was pretty much a waste of day with the S&P 500 going nowhere. The index finished the day down by about 15 basis points. The index went sideways all day, hovering just below resistance around 2975. I still think that the index is likely to fall and refill the gap over the next day or two at 2,940.

spx sp500

Despite my very short-term negative view, I continue to believe the stock market is heading higher into year-end. The significant overhang is currently Brexit, of course, which should have a resolution by the end of the month. But if earnings can manage to come in at a better than expected pace as they usually do, I think it creates the opportunity for a push higher into year-end, especially if we get a Fed that continues to ease on monetary policy. I highlight these catalysts and more in a video today. You get the first two weeks to try the service out for free –Potential Catalysts For Year-End Stock Rally.

STOCKS

Tesla (TSLA)

Tesla had a good day rising over 3% on headlines that the Gigafactory 3 has started production, that’s the plant in China. Regardless, the stock is breaking out with one more hurdle coming in the $260 to $266 region. After that, the stock could move up rather quickly to fill a gap at $300. I talked more about this is in the mid-day update, BE CAREFUL ON COLUMBUS DAY

tesla, tsla

Shopify (SHOP)

Shopify also had a good day, and with today’s move above $344, the stock could be heading back to $360.

shop

Beyond Meat (BYND)

Beyond Meat fell to support at $124, and for now, it held. How long it holds is the question? My guess is not for long. A drop to $100 doesn’t seem that far off.

bynd, beyond meat

AMD (AMD)

AMD looks like it is in motion, and is now heading the way we thought. A move to $31.40 is now in the works.

amd

Nvidia (NVDA)

Nvidia looks like it is ready to break out at moments notice and start rising towards $198.

nvidia, nvda

Have a good one

-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.