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 Apple, Acadia, NXP
S&P 500 (SPY)
The stock market continued to drift higher on February 25 with the S&P 500 rising by roughly ten basis points to 2,796. The index reached a high at technical resistance of nearly 2,812. That is when the index backed off and started filling the gap created from the morning pop. Not an unexpected outcome.
What is important here is that the index finally got above 2,800 a significant psychological level. I would expect this 2,800 region to now act as firm support for the index over the coming days, and for the index to rise beyond 2,812.
I did note in my premium write-up that the valuation on the S&P 500 is now higher than its valuation in the fall. That’s because earnings estimates have dropped so much. You can read more about it here. Stocks Can Continue To Climb On Strong Earnings Growth
The Russell rose above critical resistance at 1,592 and hugged that level most of the afternoon. This region is a big test for the Russell, this is the level the Russell needs to climb above if the market wishes to reach new highs.
GE reached our target of $12 in the pre-market. You can decide for yourself if you want to give me a check mark or not.
Now it is time to look at a stock which I have got wrong a lot lately, Nvidia. I’m not sure why I have been so wrong. Maybe I have let their poor results cloud my judgement. The chart is now starting to look better than in previous weeks. Additionally, the stock has not broken down, which suggests strength. There appears to be a broader, more positive shift in trend of the RSI too. The equity is looking more and more like it is heading to $178 and not $139. Ugh.
I said that Apple broke out and it continues to appear as if it has broken out. A march on to $182 continues to look like the outcome.
Qualcomm continues to have an improving outlook. The stock has a nice uptrend and is nearing a massive break out. I have also noticed some bullish bets in the stock recently. Here is a free article on the stock I wrote up that goes over all of this in greater detail. Qualcomm’s Breakout May Push Shares Even Higher
I also noticed some similar trends in Intel; this is a premium story. More Bullish Signs For Intel
Acadia reports tomorrow after the close, and I am very excited to hear what they have to say. More important is what they see revenue growing too in 2019. The stock finds itself in a position to break out. There is a giant gap up around $31 just waiting to get filled, but we need to take one step at a time.
It looks like NXP cleared two resistance levels today and that may very well set up a move to $106.
Have you seen the monster comeback Alibaba has had? $201 is now in sight.
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. February 25