Stocks Are Gapping Higher Again, Just Remember To Mind The Gap

Stocks are gapping higher once again, following what was a robust overnight session in Asia. Interestingly, Europe is not having a great trading session, with markets essential flat in Germany and the UK.

S&P 500 (SPY)

Perhaps my crystal is fuzzy, I’m not sure, but recently, I feel more confused by the markets than at points in the past. Maybe it is because of instincts suggests that the market is overextended and needs to cool. However, it has been incredibly resilient. Again, it isn’t that I expect some massive correction, 2 to 3% would suffice.

Anyway, resistance for the S&P futures likely comes around 3,364, and support is 3,310.  My one thought of intelligence today, as it says when you get on the train, mind the gap.

S&P 500, spy


Netflix (NFLX

Netflix is up this morning and trading at $345. If the stock can hold these gains, it would be a big positive. But as we know, the $340 region has been incredibly difficult for the equity. So, what I find most ironic about Netflix is how they host their conference call on YouTube. Lol. Hey, I happen to own both companies, but I find it strange. Shows you how much Netflix views YouTube as a competitor, which it isn’t.

Anyway, I continue to think the stock works its way towards $360; my view hasn’t changed. I also think the results show that the company is on the right path regardless of competition.

netflix, nflx (JD)

Yesterday I had a slight typo in my write-up saying a drop below $37.10 would send the stock lower to $38.40. Well, that makes no sense, and I meant to say $39.10. The good news is that the stock held support yesterday at $39.10. Today, it is bouncing higher and is rising above resistance at $40.15, and I think it could be on its way to $42.85.



Micron (MU

Micron is starting to break away from resistance at $58.65 and appears t could be heading higher towards $61.40.



Tesla (TSLA

Tesla is rising after Wedbush raised its price to target to $550, with a bull case scenario of $900. If I had to throw a dart at a board, I’d say that $600 is the next level of resistance to watch for.

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Disclosure: Michael Kramer And The Clients Of Mott Capital Own NFLX And TSLA

Disclaimer: This article is my opinion and expresses my views. Those views can change at a moment's notice when the ...

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