Stocks Set To Rally On Feb. 11 As Global Breakout Continues

US Markets

  • S&P 500 Futures +7.5 points
  • US 10-Year 2.65%
  • Oil $52.20
  • VIX 15.95
  • Dollar Index 96.70

International Markets

  • Japan Nikkei Closed
  • Shanghai +1.36%
  • Hong Kong Hang Seng +0.71%
  • South Korea KOSPI +0.17%
  • UK FTSE +0.4%
  • German DAX +0.70%
  • German 10-Year Bund 0.11%
  • Japan 10-Year JGB -0.04%

Global Growth Indicators

  • Copper -0.62%
  • Silver -0.72%
  • Platnium -1%

Top Events:

  1. US/China trade talks start today
  2. US GDP – Estimates for 2.6%
  3. China’s Lunar New Year spending growth slows to a decade low.
  4. UK Industrial Production -0.9% vs. estimates for -0.4%
  5. UK GDP +1% vs estimates of +1.4% y/y

Shanghai (FXI)

The Shanghai composite was up last night and now is approaching a huge breakout. The index closed just below technical resistance at 2,654. An increase above this level of resistance sends the composite about 7% higher to 2,825.

Shanghai, China

Hong Kong (EWH)

Hong Kong Hang Seng is also approaching a significant breakout. Should the HSI rise above resistance at 28,160, it could go on to rise to almost 29,000.

hang send, hsi

Germany (EWG)

But Europe is a different story because the German DAX is failing a critical resistance level at around 11,030.  But as we can see the RSI did break out of a nasty downtrend, and I would expect that the pullback in the DAX is not likely to last.

german dax

S&P 500 (SPY)

S&P 500 is pointing to a higher opening as well; no surprise, right? We have talked about this since the middle of last week. The significant level of resistance sits at 2,735, with a gap that needs to be filled up there.

S&P 500, spx

Russell 2000 (IWM)

Russell 2000 has found meaningful support around 1,492, and now resistance rests up at around 1,520.

russell 2000, rut

Tesla (TSLA)

Tesla shares are rising in the pre-market after Canaccord upgraded the stock buy from hold, with a $450 price target. Additionally, Wedbush is positive on the stock this morning.  The stock still looks as if it is headed towards $333, where it will face a downtrend and a resistance level.  Bloomberg is modeling weekly Model 3 production at 5,186 per weeks. So much for weak demand.

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Disclosure: Michael Kramer and the clients of Mott Capital own Tesla, Mastercard, Netflix

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

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