8 Monster Stock Market Predictions For The Week Of Aug. 1

Stocks rose sharply again on Friday, with the S&P 500 climbing by around 1.4%. The rally probably isn’t over yet, especially since we have seen a significant inflow of liquidity in the last two weeks. Until we see some financial condition tightening, markets may continue to rise. So watching liquidity measures and financial conditions is key to this market. At this point, I am looking for the S&P 500 to rally a bit further, perhaps up to 4,335.

Additionally, it is worth noting that typically on the first few days of the month there are monthly inflows that tend to help lift markets as well.

Nothing fundamentally has changed in the market, but stocks will not go straight down, and with yields moving lower, stocks may get a boost. I still think we will see 3,200 to 3,300 over the long-term. Especially, when one of the Fed’s most dovish board members is calling for a 50 bps rate hike at the September meeting and says the Fed still has a long way to go.


Nasdaq (QQQ)

It is a similar outlook for the QQQ, with room for the ETF to climb to around $340.


Rates (TIP)

Another reason indexes have been rising is that real yields have been falling, and as long as real yields continue to push up, so too will equities push higher. At this point, I could see the TIP ETF rising to around $120.


Copper

Copper prices have been moving steadily higher. Rising commodity prices will negatively affect markets because it will help push inflation expectations. But for now, this may not matter. If copper can clear $3.60, it could probably push up to around $3.75.


Freeport (FCX)

Higher copper prices are good for Freeport, and with the stock nearing resistance at $31.70, there is an opportunity for shares to move higher and fill the gap around $34.10.


Exxon (XOM)

Exxon moved up some last week, and with a gap to fill around $100.5, the stock looks to have further upside.


Block (SQ)

Block has some solid bullish momentum based on the RSI, and the next significant level of resistance comes at $83.30, so there is more room to run higher.


Roblox (RBLX)

Roblox continues to push higher, and perhaps momentum for the stock has finally turned. The RSI is still steadily trending higher, and if resistance at $45 manages to give way, then the shares could climb higher to around $54.


More By This Author:

The Mechanical Bull Rally Lives
7 Monster Stock Market Predictions For The Week Of July 24
Stocks Rise Again On July 21 As Liquidity Wave Nears Its End

Disclosure: Michael Kramer and the clients of Mott Capital own RBLX.

Disclaimer: Charts used with the permission of Bloomberg Finance L.P. This report contains independent commentary to be ...

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