6 Monster Stock Market Predictions – The Week Of February 1

This week, there will be many economic data points, with the ISM manufacturing and service index Monday and Wednesday, respectively. Additionally, the BLS jobs data will come on Friday morning. This week’s bigger overlying issue will be any signs this short squeezing madness continues, as that is likely to have the biggest impact on the market overall. (Should be free to read-  The Massive Short Squeeze Could Cripple The Stock Market)

S&P 500

The S&P 500 (SPY) has already broken two key uptrends on the short-term chart, with the potential for a failed cup-and-handled pattern. However, these are bearish patterns in nature and would suggest lower prices. How much lower the index will fall will depend on what happens at 3,700 and 3,650. For now, these are the two major levels of support, with the more important level of support being at 3,650. A break of 3,700 quickly sends the index to 3,650, but a break of 3,650 opens the potential flood gates. With multiple gaps that need to be filled all the way down to around 3,250. (Paid Subscriber Video on RTM – T.W.A. – S&P 500 Breaks Major Trend Lines- First Two-Week Are Free To Try)

Apple 

Apple (AAPL) did break out ahead of results but has since given back nearly all of those gains. If the stock is retesting the breakout, it will need to decline to $124 and bounce at the trend line. If this something else, and a more severe pullback, the stock will fail to hold support at $124 and likely continue lower towards $119. (Should be free to read – Apple’s Blockbuster Results Hurt By Lack Of Guidance)

Facebook 

Facebook (FB) already has broken down and appears to have retested its breakdown over the past few weeks. If that is indeed the case, the stock will likely continue lower towards $241.

AT&T 

AT&T(T)  had a pretty lousy week despite announcing it has 41 million HBO and HBO Max subscribers. HBO had revenue of $1.9 billion out of total revenue of $45.6 billion. It hardly even moves the needle. If this is the great savior of the business, they have bigger issues. At this point, it seems clear to me, the deal to buy Time Warner has been pretty much a disaster given the amount of debt they took on. Interest expense in the quarter was $1.9 billion, so HBO basically covers the interest cost. Great.

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

Disclosure: Mott ...

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