April 16, 2019
Michael Kramer and the clients of Mott Capital own Cisco and Netflix
- S&P 500 Future +10 points
- 10-Year Yield 2.57%
- Oil $63.44
- Dollar Index 96.96
- VIX 12.12
- Japan Nikkei +0.24%
- China Shanghai Comp + 2.39%
- Hong Kong HSI +1.07%
- South Korea Kospi +0.26%
- Germany Dax +0.63%
- UK FTSE +0.45%
Global Growth Proxies
- Copper $2.9345
- Platinum $891.20
- German ZEW survey came rose to 3.1 versus estimates of 0.8% and up from -3.6 in March
- US Industrial Production Estimate for +3.6%
- CHINA GDP Tonight Estimate 6.3%
China had a big night and is now nearing its next major break out. The index closed at key resistance of 3,255 setting up a potential move to 3,330.
S&P 500 (SPY)
The S&P 500 is pointing to a 10 point increase to the start day, which would place the index around that the big resistance level we have watched at 2,915. It would be ideal if we can close above 2915 today.
It will be a big day for Netflix with results coming tonight after the close. Not much to say that is new. Based on all of my data and research I’m looking for a better than expected subscriber growth number and for this stock to start making its way towards $400 again. Deutsche Bank upgraded the stock to buy with a $400 price target today.
Bank of America (BAC)
Bank of America is trading flat after reporting a beat on EPS and inline on revenue. The stock continues to hover around that technical resistance level around $30, with the potential for a push towards $32.
Cisco had its price target raised to $62 from $58 at Goldman. Additionally, the stock was rated a buy, but removed from its conviction buy list. Cisco broke out a few weeks back rising above $55 and could be on its way to $70.
Micron was initiated at Nomura at hold with a $45 price target. I don’t know where this stock is going at the moment. The chart is sideways and has no catalysts on the horizon. Sideways is probably the direction it continues to go.
More negative headlines on Facebook. It probably doesn’t matter because the stock is still heading to $186.
Amazon will now be watched closely today as $1850, as this has been a significant level of resistance for the stock. This morning in the pre-market it is trading above that resistance level.
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