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!
© 2019 Mott Capital Management, LLC. Use, publication or reproduction in any media prohibited without the permission of the copyright holder.
Join our 1,253 Daily Subscribers And Get This FREE Commentary In Your E-Mail!
Where Do Apple, Facebook, Netflix, Skyworks, Qorvo, and Gilead Go?
Michael Kramer and the clients of Mott Capital own AAPL, NFLX, SWKS, and CELG
Stocks popped today, with the S&P 500 rose on Wednesday by nearly 40 basis points, to 2,887. That chart shows clearly the break out from the previous week’s downtrend. It bounced where it should at 2,872. I think the S&P 500 should attempt to reach 2,930 over the next few days.
Technology had a solid bounce as well, with the XLK ETF jumping by 85 bps. Again, this ETF continue its trend higher as well. I think we can to advance higher, one towards in $80, for the technology ETF. That is a rise of about 7.5 percent from its current price around $74.50.
Apple bounced right where it should have at roughly $217, and moved higher today by over 2.5 percent. I think Apple makes a move to around $230 in the days after the iPhone event tomorrow.
Even Facebook showed encouraging signs, with the stock bouncing off support around $159.50. But now shares need to work higher, above this current resistance level around $166. If can it, it runs to $173; if it can’t, it goes back to $159.50. It is that simple at this point.
One group that needs to get its act together are the semis. They have acted particular bad. When diving into some of these Apple suppliers, they are getting crushed. You would never know that Apple was getting ready to ship up to 75 million iPhones between now and year-end.
Skyworks is one such stock basically at its lowest point since January of 2017. I always feared the stock would refill that giant gap created in January of 2017. It looks like that is now what it is doing. If Apple is supposed to sell the most iPhone since the iPhone 6, I don’t see how Skyworks will not be a significant beneficiary of that.
Qorvo is another stock that is struggling and looks like it is going lower too. Perhaps to $65.
What happened to the biotech’s and that “massive” break out? This group is sucking wind lately.
Over the weekend, I said Celgene could fall to $86.5, and it got there awful fast. But the good thing is that held.
Gilead is hanging on for its dear life at $72.50. I don’t like the way this one looks one bit.
Netflix is on the rebound. The stock is acting well. I will say it again, a rise above $357, likely send shares to around $400. It didn’t happen the last time, but maybe it happens this time? It would be nice.
Things could be about to get a lot better or worse for Chinese stocks. As the Shanghai composite comes down to technical support, is it a double bottom or will it fall through support? I guess we find out soon enough.
Michael Kramer is the Founder of Mott Capital and the creator of Reading the Markets.
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.