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Michael Kramer and the Clients of Mott Captial own Netflix, Tesla, Acadia
Monday, February 4
S&P 500 Futures +2 as of 7:45AM
US 10-Year 2.70%
Dollar Index 95.72
Nikkei +46 BPS
Shanghai – Closed
Hong Kong HSI +21 BPS
KOSPI -6 bps
German DAX -30BPS
UK FTSE +25 BPS
Key Events for February 4:
- Factory Orders
- Monday PM
- Tuesday AM
- Tuesday PM
- Electronic Art
- Monday PM
International Markets Near Turning Point
The South Korean KOSPI has continued to rise in recent days and is now stalling out. The index has filled the gap at 2,210, which is the level we had looked for, now it is facing a steep downtrend at that level. This will be a big test not just for Korea but the entire global equity complex.
With the RSI at overbought levels, my expectations would be for a minor retracement in the index over the coming days. But the trend in the RSI is now higher, and that would suggest the index does move higher after a slight pullback.
Hong Kong Hang Seng
We can see that the Hang Seng is nearing a resistance level and is also facing a downtrend, which is it is trying to rise above. At this point the RSI suggests more gains to come longer-term. However, the RSI over the short-term is overbought and indicates the index pulls back as well.
The UK FTSE does have further to climb from its current level of 7,040 to around 7,120.
Overall global equity markets are hitting a rough patch, and I’d expect this to play out during the next few days or perhaps the balance of the week.
S&P 500 (SPY)
The S&P 500 still appears to have a bit further to rise and has a reasonable chance to get to around 2,800 in the coming days. The chart shows that if the index can get over 2,720, it has a clear path higher towards 2,800.
Russell 2000 (RUT, IWM)
The Russell has already risen above resistance, and it has a good chance of advancing to around 1,562.
There will be plenty of continued focus on Amazon this week after its fourth quarter results last week. The stock continues to rest on technical support at $1,620. A drop below that level opens a path lower to around $1475.
Netflix has been slowly grinding higher with the potential to rise back to $355.
Square does continue to trend higher, but over the next few days, I think there may be a chance for it first to fall to back to $65.50.
Blackberry continues to trend higher towards $8.75.
Tesla can likely rise back towards $333.
Acadia is back to the upper end of the range, and if can get through this $23 to $24 region it goes on to $27.
GE is hitting a wall of resistance at $10.65. There is a gap to fill, and that means it likely heads back to $9.
See Ya Later!
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