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!
Subscribe to The Market Chronicle to get the Daily Monster Market Commentary and join the 2,892 subscribers getting it for FREE!
[widget id=”text-23″]
Biotech and Technology Stocks Rally, Is It A Breakout or Fakeout?
[widget id=”text-21″]
Biotech and Technology stocks both showed a little bit more life today, then they have in past days. Should this trend continue tomorrow, it would be a good sign for the stock market as a whole.
[widget id=”text-16″]
S&P 500
The stock market continues to be extremely volatile, with another day of wild price action. I think I wrote this last week, but it makes trading this market nearly impossible. I’m glad I do not trade the market, and only use a buy and hold strategy, easier to manage, and less stressful. The S&P 500 lows reached 2,700 today, by the end of the day we made a round trip and finished lower by only 1 point, go figure. The volatility remains too dangerous to try to time anything these days. The sad part, I think it is here to stay for some time, and we should get used to it.
[widget id=”wordads_sidebar_widget-41″]
[widget id=”text-19″]
Biotech Stocks
The NASDAQ Biotech ETF (IBB) closed today just a hair above $111.50, at $111.80. For me, that is not enough to say it broke out. You need to watch tomorrow for a follow through. The group needs to continue higher and manage to rise significantly above $112. Also, I want to see this group meaningfully outperform the major averages. If we get those two pieces tomorrow, I become much more constructive on the group. But to this point, I’m not convinced.
The iShares Biotech ETF (XBI) had a much sharper rise, but again, I want to see a meaningful follow through tomorrow.
[widget id=”text-22″]
Technology Stocks
Subscribe to the The Market Chronicle to get it Daily and join the 2,892 subscribers getting it for FREE!
The technology ETF (XLK) is making a move towards resistance again, and all I can say is that this time it better rise above $69.25. We do not want this group failing three times at resistance.
If these two sectors can start working, then I think I would become more constructive on the stock market. For now, I think these moves need to continue to be considered suspect. The way the stock market whips around these days, it makes it impossible to sit back and just ride a trend, because that trend can change direction very quickly.
That’s gonna be it for today. Let’s see what tomorrow brings.
[widget id=”wordads_sidebar_widget-41″]
[widget id=”text-22″]
Mott Capital’s Reading The Markets – An In-depth Global Macro Stock Market Commentary – In Video Format – See How Michael Dissects The Markets
Just $200 Per Year – Get Your Free 2 Week Trial
Recent Videos:
Tech And Biotech Look Weak, Plus Subscriber Mailbag
Breaking Down Acadia’s Results, Exploring Trends In Chips Stocks
Stocks In Rally Mode, More To Come
Crazy Market Reaction Following Fed Minutes, Plus Subscriber Mail Bag
Subscriber Mailbag, Plus Market Rundown
Free Articles Written By Mike:
Why Biotech Stocks Face Steep Declines Ahead
Netflix Stock Is Poised For An 11% Plunge
Why Salesforce’s Record Stock Gains May Not Last
4 Red Flags For Technology Stocks
Biotech Stock Nektar May Be Ripe For A Sharp Pullback
Macy’s May Fall 18% as Option Traders Turn Bears
Micron May Rise 12% As Analysts Grow More Bullish
Why Amazon’s Stock May Continue To Outperform Alibaba’s
AMD May Fall 17% as Bearish Option Volume Soars
Join our 2,892 Daily Subscribers And Get This Commentary In Your E-Mail! Subscribe
-OR-
[vc_tweetmeme type=”follow” follow_user=”michaelmottcm” show_followers_count=”true” large_button=”true”]
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.
© 2018 Mott Capital Management, LLC. Use, publication or reproduction in any media prohibited without the permission of the copyright holder.
Tags: #sp500 #biotech #technology #stocks #sp500