MICHAEL KRAMER AND THE CLIENTS OF MOTT CAPITAL OWN AAPL, NFLX, GOOGL
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Good Morning Today is December 13
- S&P 500 futures are pointing to a lower opening of 3 points as of 7:30 AM
- The US 10-year rate is at 2.89%
- Dollar Index is at 96.97
- WTI Crude Oil is $50.96
- Critical events for today: – ECB Rate Decision and Press Conference – around 7:45 AM
Recap of International Trading:
Japan was +0.99%
Hong Kong Hang Seng Index +1.29%
China Shanghai Comp. +1.23%
UK FTSE up -0.08%
FED Rate Hike Watch:
According to the CME, there is now a 78% chance of a rate hike in December, that is up from 77% yesterday.
Currently, the market is pricing in a 33% chance there is no rate hike in 2019 and a 37% chance of just one rate hike.
No GAP higher or low
So far today we are looking for a modest drop in the S&P 500 to start the day, and that is a good piece of news. The gaps up and down have created a great deal of volatility in the recent weeks.
There is a mild uptrend that has formed in the S&P 500 and should we have a flat opening; there is a good chance we can continue along that uptrend higher and retest yesterday’s highs around 2,686. Should that uptrend not hold, then it would set up a retest of 2,630.
FAAMNG
Once again the market will lean heavily on the Apple, Facebook, Alphabet, Netflix, Microsoft, Amazon, and the Chip stocks to get a sense of direction. These stocks continue to be among the largest in the marketplace and these are once again the stocks that weigh the most heavily on the path of the index.
Microsoft (MSFT)
Of all the stocks in the market, Microsoft has been one the most stable.
Amazon (AMZN)
Amazon will try to continue to rise today. The stock was able to rise above a short-term downtrend yesterday. Resistance continues to be around 1,760, support around $1620.
Facebook (FB)
Facebook did rise above a long-term downtrend, and it would seem the path for the stock is higher to around $148.
Netflix (NFLX)
Netflix rose above a resistance level yesterday clearing a short-term downtrend and a resistance level around $271. Resistance is at $285 appears to be strong.
Apple (AAPL)
Apple is trying to change the course of its trend. $164 has continued to offer strong support. It is going to take a rise above $171 for Apple to move on to $180.
Alphabet (GOOGL)
Alphabet is also slowly trending higher, with resistance around 1,125.
Broadcom
Rose above a downtrend yesterday and cleared resistance around $251. The stock appears poised to rise to around $274.
Banks
The banks are the one group that can make things difficult for the broader market. The BKX bank index has been a free fall and has dropped below 90.50. It could quickly send the index to around 88.50.
JPMorgan
JPMorgan is the biggest bank, and resistance appears to be firm around $102.
Citigroup (C)
Support for Citigroup is around $55.
Bank of America
Bank of America could be heading towards $22.90.
Goldman Sachs (GS)
The next level of support for Goldman is $171.
Good Luck!
-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
sp500, Amazon, Facebook, Tesla, Broadcom,netflix