12 Stock Market Predictions For The Week Of March 18
Valuations
As we noted in Saturday’s commentary, it is going to be a big week for stocks. If all goes well and in the right direction, and I believe it will go well, then that means that equities are on the verge of not only continuing to move higher but are likely heading toward record highs.
The reason I believe that lies in the current valuation of the S&P 500 which is trading at just 15 times 2020 earnings estimates. As I have noted before the current one-year forward earnings multiple is well below the average of 17 over the past two years and well below the average since 1988 of 17.7
(Data from Dow Jones S&P)
S&P 500 (SPY)
The S&P 500 rose above a significant technical resistance on Friday around the 2815 level. The next major level of resistance does not come until 2,875. A rise above that level and we may be looking at an index that would be moving into record territory
Amazon (AMZN)
Amazon (NASDAQ:AMZN)'s stock broke out on Friday finally rising above the downtrend which has been in place since October. Now the next major level of resistance comes again around $1,770.
Alphabet (GOOGL)
Alphabet (GOOG,GOOGL) continues to look as if it on its way to $1,225.
Netflix (NFLX)
Netflix Inc (NASDAQ:NFLX) also broke out and may be on its way back to around $380.
Facebook (FB)
Facebook (NASDAQ:FB) is one stock that continues to look as if it is heading lower. I believe the stock continues to fail at the $173 resistance level and is now is clinging to support at $166. A further drop is likely on the way bringing the stock back to the gap at $149.
JD.Com (JD)
Jd.Com (NASDAQ:JD) looks as if it will continue to rise. An increase above $30 triggers the next big break out and puts the stock on a path towards $35.
Qualcomm (QCOM)
Qualcomm (NASDAQ:QCOM) has been on a path higher, and that is likely to continue this week. A break out above $58 sends the stock on to $62.25.
Micron (MU)
Micron (NASDAQ:MU) reports results this week and $40 is once again resistance. I think the stock trades lower following results back down to around $36.
IQiyi (IQ)
iQIYI Inc (NASDAQ:IQ) did end up consolidating sideways, and now the stock is butting up against an uptrend. The stock likely continues higher now on towards $30.
AMD (AMD)
There appears to be a new uptrend which has formed in Advanced Micro Devices Inc (NASDAQ:AMD)’s RSI, and it would suggest that it continues its rise back to $25.70.
Microsoft (MSFT)
Microsoft Corporation (NASDAQ:MSFT) is at an all-time high, and I suspect that the stock will stall around $116 or even pulls back to $112 before making its next move higher towards $126.
Cisco (CSCO)
Cisco Systems Inc (NASDAQ:CSCO) is likely to continue its path higher too. Its next level of resistance comes at $55. The stock hasn’t traded at this price since, well –the year 2000.
Disclaimer:
Michael Kramer and the clients of Mott Capital own Alphabet, Netflix, Microsoft, and Cisco.