Stocks Are Poised To Rise On Feb. 5 As Global Rally Marches On

February 5, 2019

  • S&P 500 +3.6 points
  • 10-Year Rate 2.73%
  • Oil $55.06
  • VIX 15.50
  • Dollar Index 95.97

International Markets

  • Japan -19 bps
  • South Korea -6 bps
  • China – Closed (Lunar New Year)
  • Hong Kong – Closed (Lunar New Year)
  • UK FTSE + 1.43%
  • German Dax +1.23%

Key Events for February 5:

  1. President Trump, Sec. Mnuchin and FOMC Chair Powell had an informal dinner to discuss the economy. You can read the Fed’s statement
  2. President Trump to hold The State of the Union tonight.
  3. ISM Non-Manufacturing: Estimates for 57.2
  4. Earnings
    1. Tuesday PM
      1. Disney
      2. SNAP
      3. EA
      4. Skyworks
    2. Wednesday AM
      1. GM
      2. Take Two
    3. Wednesday PM
      1. Chipotle

UK

It is incredibly positive that the UK FTSE continues to rally and is breaking above resistance at 7,120. If the rally can hold and the breakout and push higher, then there is a path for the index to rise to roughly 7,270.

FTSE 100

Germany

The German Dax is also nearing a breaking out with the potential to rise to 11,535. The chart below shows what appears to be a bull flag formation.

german dax

Overall international equities continue to power higher, and that continues to be positive for US equity markets.

S&P 500 (SPY)

The S&P 500 is likely heading higher again today, with the index rising above critical resistance at 2,715 and is on its way to 2,800. I see no reason why stocks can’t continue to rally today. The path to 2,800 seems fairly straight forward from here.

SPX, sp500

Semis (SMH)

The semiconductors continue to look very strong as well, with the SMH on a path to $101.

semiconductor, smh

Technology (XLK)

The XLK technology ETF appears headed towards $69.

technology, xlk

Industrials (XLI)

The industrial ETF is also nearing a pretty big break out should it rise above $73. It could be on its way back to $75.50.

industrial, xli

Gilead (GILD)

Gilead is falling this morning after posting disappointing results. The stock is falling back to lower support around $66 this morning.

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Disclosure: Michael Kramer and the Clients of Mott Capital own Disney and Skyworks

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

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