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.
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MICHAEL KRAMER AND THE CLIENTS OF MOTT CAPITAL OWN NFLX
Good Morning Today is Friday, December 28
- S&P 500 futures are pointing to a higher opening of 12 points as of 8:00 AM
- The US 10-year rate is at 2.75%
- Dollar Index is at 96.23
- WTI Crude Oil is $45.18
- VIX: 29.36
- Critical events for today: It is Friday! Thank Goodness
Recap of International Trading:
- Hong Kong Hang Seng Index up 0.10%
- Japan was down 0.31%
- China Shanghai Comp. down 0.44%
- UK FTSE up1.70%
- Dax up 1.76%
FED Rate Hike Watch:
According to the CME, there is now a 61.9% chance there is no rate hike in 2019 and a 17% chance of just one rate hike, and 17.6% of a rate CUT.
Yes, it is the last Friday of 2018, news flow is beyond light, and that means technical will continue to reign supreme. The S&P 500 is looking to set to rise, and to take out 2,500 this morning. Should that happen, the next level of significant resistance would come around 2,530. After that, we could run to around 2,590.
The Russell 2000 is also in the middle of a move higher with resistance coming around 1,344. If the index can manage to rise above 1,344, it sets up a critical retest of strength at 1,394. It would be a significant level to watch for the index.
The housing index HGX broke above a significant resistance yesterday around 240.50 and could continue higher on towards 245.
The Semiconductor SMH has broken above resistance at $85.30 and finds itself in an air pocket, which could result in a jump higher to $90.40. The 15-minute chart shows a very nice reverse head and shoulders pattern in it, a bullish sign.
Amazon is in the news today and may be bidding on the YES network. The stock cleared vital resistance at $1,450 and now may be heading towards $1,500.
Netflix is making the news too, as it releases its first interactive TV show today. The stock has rallied materially off its lows of around $230, and now with the stock approaching $260 where a significant downtrend rest. Could trigger a big a breakout today if it can beyond that downtrend.
Alibaba is finding a bounce at support and should it increase above $141 the stock may rise back to around $152. Although the Chinese Renminbi has strengthened versus the dollar, it hasn’t strengthened enough to get investors more positive on the stock.
JD.com has also put in a solid bottom as well and is likely on its way to back to around $23. The chart is looking extremely bullish as the RSI continues to trend steadily higher.
Adobe also looks like it may have bottomed out around $211, and may be on its way back to $230.
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.
amazon, netflix, housing, alibaba, jd, adobe