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 CLIENTS OF MOTT CAPITAL OWN ACAD, TSLA, AAPL
Good Morning Today is December 10
- S&P 500 futures are pointing to a higher opening of 14 points as of 6:30 AM
- The US 10-year rate is at 2.88%
- Dollar Index is at 96.95
- WTI Crude Oil is $51.29
- Critical events for today: – US PPI Estimate +2.5%, CORE PPI Estimate +2.6%
Recap of International Trading:
Japan was lower by +34 bps
Hong Kong Hang Seng Index +7bps
China Shanghai Comp. +37%
UK FTSE up +.98%
The DAX is one to watch. The German Index fell below a key level of technical support yesterday, now that support becomes resistance. It makes 10,791 level the one to watch.
FED Rate Hike Watch:
Currently, the market is pricing in a 41% there are no rate hikes in 2019, and 34% chance of just one rate hike. Unchanged since yesterday.
Can Stocks Continue To Rise?
That is the big questions on everyone mind because the S&P 500 saw a big a rebound off its lows yesterday. The good news is that futures are looking higher this morning, and the S&P 500 cleared a critical level of resistance yesterday at 2,630. Additionally, the S&P 500 has risen above a short-term downtrend. It makes the path of least resistance for the S&P 500 higher to 2,670.
The semiconductors may be one group that leads the market higher. There is now a well-defined triple bottom in the SMH ETF. Should the ETF rise above $91.20, it would have room to climb to $94.00.
Broadcom may be one chip stock that leads the way higher. The company reported strong quarterly results just last week, and if the stock can rise above $240, it would have room to increase to $251.
The biotech sector maybe another group that leads the market higher. The XBI appears to have put in a double bottom around $74.50. Now the ETF is rising above resistance at $78.75 and is breaking a short-term downtrend. The ETF may rise towards $82.50.
Tesaro is the largest part in that ETF, but that company has been bought out. That leaves Acadia as the largest part. The stock has recovered rising above resistance at $18.50; it makes the next level of resistance at $21.50.
The consumer discretionary ETF is looking as if a bullish reverse head and shoulder pattern is forming. We can also see that volume has been steadily declining from the left to right shoulder. It would seem to suggset there is a good shot this pattern fully develops. The first level of resistance to watch for is $107
The XLY will not go anywhere without Amazon; the stock has a 21.5% weighting. The stock has easily held support at $1620, and that means the stock could rise to around $1,770.
The newly created telecommunication ETF, the XLC, has a similar pattern to the XLY. The ETF has been in a nasty downtrend, and it may rise to resistance is around $45.
Facebook is the largest stock in the XLC. As we noted yesterday, Facebook appears to be breaking out. The next level of resistance around $148.
Tesla is another stock to watch as it rose above resistance at $360 and has performed exceptionally well in a terrible stock market. The next level of resistance would come at its all-time.
Apple hit $164 support yesterday and found a meaningful bounce. Should the stock rise above $170, the next level of resistance comes at $180. The RSI is beginning to trend higher now.
Good Luck Today!
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, Amazon, Facebook, Tesla, apple, Acadia, Broadcom