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- MICHAEL KRAMER AND THE CLIENTS OF MOTT CAPITAL OWN SHARES OF NFLX, V, MA, GOOGL
Stocks continued to rise on Tuesday shaking off early morning trade war worries. I think this now is setting up the S&P 500 for a run to 2,720. Powell is expected to speak tomorrow at noon; we will need to watch what he says. But today the Fed’s Vice Chart Richard Clardia noted that interest rates are much closer to a neutral rate.
Unless I missed a bunch of rate hikes over the past few weeks, I’m not sure how we go from far from neutral in October to near neutral today. We’ll have to see what Powell says tomorrow, but I would expect him to be somewhere in the same region of near neutral. I would see this as a shift towards a more dovish approach to policy, which is likely why the equity market so holding up well today.
The NASDAQ is holding firm despite being flat today. It is also nearing a potential break out should it rise above 7,100.
Chip Stocks (SMH)
One group also trying to break out are the Chip stocks. Should the SMH rise above $94, it has a path to $96.50. It has been a long time coming, but the trends for the chip stocks are changing. You can see the RSI is shifting directions nicely.
Intel is one of those stocks trying to pick up the slack. The stock is finding a meaningful bounce off its uptrend.
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Broadcom is another stock that looks poised to break out and move on to $251.
Premium Content; Biotech’s Are Nearing A Break Out
The technology ETF (XLK) is also showing signs of a break out should it stay above $65.50. It may result in the ETF rising to $68.90.
Now that the XLK has been reweighted and stocks such as Facebook and Google were removed. It leaves Apple and Microsoft as the heavyweights with each stock having an 18% weight. That is followed by Visa and Intel around 5%, talk about a drop-off.
Microsoft is likely to lead the way. The stock has held firm around $102, despite multiple attempts to break the stock below that price. It likely means Microsoft has only one way left to go and that is higher, perhaps to around $115. There is still a downtrend to contend with, but a rise above $109 sends the stock higher.
Visa may be on its way back to $140.
Mastercard is nearing a break out of its own should it rise above $194.
Netflix maybe breaking out too and could very well on its way back to the $330’s, should it rise above $272.
Alphabet is nearing a break out as well and maybe on its way towards $1130.
Amazon is nearing $1620, and that means the stock could be back on track for a rise to $1760.
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
sp500, NASDAQ, Microsoft, Intel, Visa, Mastercard, Netflix, Alphabet, Amazon