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!
© 2019 Mott Capital Management, LLC. Use, publication or reproduction in any media prohibited without the permission of the copyright holder.
Join our 1,253 Daily Subscribers And Get This FREE Commentary In Your E-Mail!
MICHAEL KRAMER AND THE CLIENTS OF MOTT CAPITAL OWN AAPL, ACAD
The stock market put on a good showing this week with the S&P 500 rising 1.73% and the NASDAQ rising 2.42%. The two indexes find themselves in a favorable position to start the week as well, with the major averages are on the cusp of what could be a big break out.
S&P 500 (SPX, SP500)
The S&P 500 closed the week right on technical support at 2,532, as we noted yesterday. I think we can break out this week, and I think that could send the index higher to around 2,620, a gain of about 4% over the coming weeks. The relative strength index looks like it may have put in a double bottom, which is a reversal pattern. The RSI has been trending lower since last January when it reached overbought level. The double bottom suggests a reversal of that downtrend. If the RSI can rise above 55, the downtrend will be broken and that means the index will race higher.
The NASDAQ closed in on-resistance as well and could rise to around 7,000. The RSI in the NASDAQ is showing a similar pattern as the S&P 500.
The Russell could rise to around 1,500 in the coming weeks, again a similar pattern as the other indexes.
Here is another reason to be bullish, the housing index HGX which is flashing positive signs, and could rise back to roughly 296. Remember I noted that when the housing sector broke down, it took the market with it. This Is The Sell Signal That May Have Tanked The Stock Market
Apple could be one stock to help the market out, yes Apple. The stock has a technical gap now that needs to be filled at around $155.
Biotechs are on fire again too after that big Bristol Myer acquisition of Celgene; the XBI could rise to around 79. Plus this week is the JP Morgan Healthcare conference.
Gilead is showing some signs of life and its chart suggests an increase to $72.
If Acadia can get over $18.50, it could move higher towards $21.50, again.
Regeneron could be on the rise to $440.
Square is getting close to a breakout but needs to clear a downtrend which is in place since October when the stock was $100. Should the stock rise above $62 it could increase to around $83.
Citigroup is nearing a breakout and should it rise above $55 it could go to $61.
Wynn Resorts (WYNN)
Wynn broke a downtrend and has successfully retested that downtrend; now the stock may be on its way to $123.
apple, square, stocks, stock market, s&p 500, nasdaq, citigroup, gilead, acadia
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.