5 Summer Friday Stock Market Predictions for July 19

US Markets

  • S&P 500 Futures +5 points
  • US 10Yr 2.05%
  • Oil $56.08
  • VIX 13.50
  • Dollar Index 97

International Markets

  • Japan Nikkei +2%
  • Hong Kong +1.07%
  • Shanghai +0.79%
  • KOSPI +1.35%
  • UK +0.10%
  • DAX +0.07%

The Focus of The Week Exclusive For Investing.com:

The S&P Biotechnology Select Industry Index has fallen by around 1.5% in July, underperforming the broader S&P 500’s gain of over 1.5%. Drug prices have once again become a political topic as the U.S. 2020 Presidential Election comes into focus, weighing down hard on the sector.

US Trading for July 19

S&P 500 (SPY)

The S&P 500 futures are trading higher on July 19, pointing to an opening that will have us challenge resistance at 3,000.  It is important for us to move well beyond this 3,000 level. I talked about the reason I felt that way over the weekend. This morning I read an article that noted the S&P 500 could fall by as much 10%, with one reason stated, the tough technical resistance region around 3,000.

If we can manage to move and close the week above 3,000 it would be a positive sign. If we can’t then we need to think about that drop to 2,940 or even 2,915.

S&P 500, spx

S&P 500, spx

Microsoft (MSFTWealth Strength IndexAAPL is Extremely Up and trending Up)

Microsoft got a slew of upgrades and price target raises following the strong results. After taking the time to re-read the numbers and the conference call, I was impressed that a company of this size can grow this rapidly. Things for Microsoft seem to be going in their favor. I strongly encourage you to read the call. 

Consider that the stock trades at 23.9 times fiscal 2021 earnings estimates of $5.88, which are likely to rise.  Why couldn’t MSFTWealth Strength IndexAAPL is Extremely Up and trending Up trade with a 26 to 28 multiple, when stocks like ADBEWealth Strength IndexAAPL is Extremely Up and trending Up and INTUWealth Strength IndexAAPL is Extremely Up and trending Up trade 30+? In my opinion, this the cleanest play on cloud growth, better than Amazon.

The $140 region is sill acting as strong resistance though, so a post-earnings pullback certainly seems possible, before an eventual move higher.

msft, micorosoft

msft, micorosoft

Alibaba (BABA)

Alibaba has been consolidating nicely, and could finally be getting ready for that push to $182.

baba, alibaba

baba, alibaba

JDWealth Strength IndexAAPL is Extremely Up and trending Up (JDWealth Strength IndexAAPL is Extremely Up and trending Up)

JDWealth Strength IndexAAPL is Extremely Up and trending Up.com is starting to look like a flag pattern, and perhaps that finally push the stock higher to $34. It isn’t like I haven’t seen enough call buying in this stock recently, which I have. More Bullish Betting On JDWealth Strength IndexAAPL is Extremely Up and trending Up

jd

jd

Micron (MUWealth Strength IndexAAPL is Extremely Up and trending Up)

Micron is very close a big break out at $45.50. It could be setting up an increase to $54.

micron, mu

micron, mu

Square (SQ)

Square continues to consolidate nicely around $81 to $83. It is looking more and more like a move to $92 is becoming possible.

sq, square

sq, square

Have a great day.

-mike

This article first appeared on Mott Capital.

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