The Stock Market May Be Poised For A Big Break Out on October 17

The Stock Market May Be Poised For A Big Break Out on October 17

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OCTOBER 17

STOCKS – NFLX, TSLA, AMZN, FCX, ROKU

MACRO – SPY, EURO, POUND

MICHAEL KRAMER AND THE CLIENTS OF MOTT CAPITAL OWN NFLX, TSLA

US Markets

  • S&P 500 Futures +7.75 points
  • US 10-Year 1.77%
  • Dollar Index 97.69
  • VIX 13.66
  • Oil $52.85

Intl. Markets

  • Japan -0.09%
  • HK +0.69%
  • KOSPI -0.23%
  • Shanghai -0.05%
  • Germany +0.34%
  • UK +0.43%

MACRO

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.

Pound

The downtrend in the pound vs. the dollar has broken, and that means the pound can probably rise back to 1.32.

pound

Euro

Something similar is happening to the euro versus the dollar. The potential for the euro to rise to around 1.13 versus the dollar.

euro

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.

S&P 500, spy

STOCKS

Netflix (NFLX)

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.

netflix, nflx

Tesla (TSLA)

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.

tsla, tesla

Freeport (FCX)

Freeport appears to be getting ready for the next move higher towards $9.90.

Freeport, fcx

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Amazon (AMZN)

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.

amazon, amzn

ROKU (ROKU)

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.

ROKU

Have a great one

-Mike

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.

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This report contains independent commentary to be used for informational and educational purposes only. Michael Kramer is a member and investment adviser representative with Mott Capital Management. Mr. Kramer is not affiliated with this company and does not serve on the board of any related company that issued this stock. All opinions and analyses presented by Michael Kramer in this analysis or market report are solely Michael Kramer’s views. Readers should not treat any opinion, viewpoint, or prediction expressed by Michael Kramer as a specific solicitation or recommendation to buy or sell a particular security or follow a particular strategy. Michael Kramer’s analyses are based upon information and independent research that he considers reliable, but neither Michael Kramer nor Mott Capital Management guarantees its completeness or accuracy, and it should not be relied upon as such. Michael Kramer is not under any obligation to update or correct any information presented in his analyses. Mr. Kramer’s statements, guidance, and opinions are subject to change without notice. Past performance is not indicative of future results. Neither Michael Kramer nor Mott Capital Management guarantees any specific outcome or profit. You should be aware of the real risk of loss in following any strategy or investment commentary presented in this analysis. Strategies or investments discussed may fluctuate in price or value. Investments or strategies mentioned in this analysis may not be suitable for you. This material does not consider your particular investment objectives, financial situation, or needs and is not intended as a recommendation appropriate for you. You must make an independent decision regarding investments or strategies in this analysis. Upon request, the advisor will provide a list of all recommendations made during the past twelve months. Before acting on information in this analysis, you should consider whether it is suitable for your circumstances and strongly consider seeking advice from your own financial or investment adviser to determine the suitability of any investment.