Stocks Rip Higher As The S&P 500 Goes Positive For The Week

By Michael J. Kramer of Mott Capital Management

Thursday, August 8, 2019 9:14 PM EST

Stock’s caught fire on August 8 rising sharply, just as I had noted in yesterday’s write-up. The S&P 500 rose by a stunning 1.9% to close at 2,938. It delivered a bone crush blow to the bears, because not only was it a sharp move higher, but the index is now up on the week! That’s right on August 2 the index closed at 2,932.

With the rise above two massive resistance levels today at 2,915 and then 2,935 the index appears to be getting ready for the next move higher back to 2,975.

I do not know how else to say this. If you had to choose between the S&P 500 and the 10-year Treasury at this point, the S&P 500 is a no brainer. Not only is the dividend yield on the S&P 500 higher, but it offers substantial growth opportunities.

S&P 500 (SPX)

There is a minor level of resistance at 2,950 that we must contend with first. But I again the setup and the backdrop for the stock is higher, not lower.

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S&P 500, spx

Uber (UBER)

Uber is falling sharply after reporting weaker than expected quarterly results. I guess all that put buying turned out to be right. I noted it today in mid-day audio commentary for my subscribers.

Here is the replay:

Anyway, where does Uber go? $36 seems possible.

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uber, uber

AMD (AMD)

AMD had a monster day rising by over 16%. Guess where the stock is once again? Yeah, right back to resistance around $34.50. The stock can’t keep hitting up against this level and not break out. It needs to break out this time; it must break out this time. I think it will break out this time, and $36 is the next stop.

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amd

Acadia (ACAD)

Acadia is now in the process of filling the gap up to $31.50.

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acadia, acad

Bank Of America (BAC)

Bank of America may be heading lower. I noted today lots of put buying in the stock recently, which suggests the stock fall. Additionally, the technical chart appears to be very weak. I think $25.75 is possible.

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bank of america Stocks ripped higher on August 8 and now up on the week marking a significant turn around while driving a stake through the hear of the bears.

Alphabet (GOOGL)

I think Alphabet is heading back to highs around $1300.

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alphabet, googl Stocks ripped higher on August 8 and now up on the week marking a significant turn around while driving a stake through the hear of the bears.