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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STOCKS – NFLX, TSLA, AMZN, FCX, ROKU
MACRO – SPY, EURO, POUND
MICHAEL KRAMER AND THE CLIENTS OF MOTT CAPITAL OWN NFLX, TSLA
- S&P 500 Futures +7.75 points
- US 10-Year 1.77%
- Dollar Index 97.69
- VIX 13.66
- Oil $52.85
- Japan -0.09%
- HK +0.69%
- KOSPI -0.23%
- Shanghai -0.05%
- Germany +0.34%
- UK +0.43%
Stocks are moving higher on word that the EU and Britain have agreed on a Brexit deal. We’ll see where this goes and if the deal gains the support of parliament. I feel like we have been down this road before. The pound is strengthening as a result versus the dollar rising to 1.2837.
The downtrend in the pound vs. the dollar has broken, and that means the pound can probably rise back to 1.32.
Something similar is happening to the euro versus the dollar. The potential for the euro to rise to around 1.13 versus the dollar.
So we will continue to watch as the dollar weakens, this could be a massive development. Do not underestimate the positive effects a weaker dollar can have on inflation and earnings growth.
S&P 500 (SPY)
You can see the S&P 500 futures are once again moving higher, and the pattern described last night in the commentary, the rising triangle, is still holding strong. Again, an increase above 3,000 would send the cash market higher towards 3,015, with the eventual move on to 3,025.
Netflix is rising today following its results, and the chart shows that the stock found some resistance at $319. I do expect over time that the resistance price will be taken out, but for now, that is the critical level to watch. A rise above $319 sends the stock on to $330.
Chinese regulators have approved the Shanghai production facility for Tesla. The $261 to $267 is the significant region to watch as an increase above this region sends the stock higher towards $300.
Freeport appears to be getting ready for the next move higher towards $9.90.
Amazon is getting back to a significant level at $1800; if the stock can clear this level, then it has some room to $1850, where it would face a significant test.
Roku is still testing resistance at $135.50. If the stock can get over this price, it has room to rise to around $143.50. Otherwise, it is back to $122.
Have a great one
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.