Saturday, July 18, 2020
Broader Market Review
Just trading the Entries and Exits I provide every week on the Dow, S&P 500 or Nasdaq would make a small fortune. This requires a bit of screen time but well worth it. Just in the last two weeks the Nasdaq Entry (6/29) and Exit (7/9) produced over $65,000 had you traded 1,000 shares of the 3X leveraged technology ETF (TECL). Just sayin’.
Nasdaq
Longer term, my broader market forecast remains the same; a choppy summer with heightened risk during August/September and with the election in November I’m sorry to say that anything is probably on the table considering what’s happening in our current crazy world. On a personal note, I continue to trim. I have gone from about 95% invested to about 70% and will continue to reduce risk over the coming weeks.
For me, the current environment dictates incremental profit taking, reducing risk and trading the stronger reversal zones both ways using leveraged products like UDOW, SDOW, TECL or TQQQ. The price forecast model in the charts below show my current Entry and Exit forecasts into September (always subject to adjustment as we accumulate more data). At this time, on a worst case basis, I don’t believe the broader market proxies will trade below their Major Support levels and I would consider the lower forecast Entries to be opportunities.
Dow
S&P 500
Nasdaq
As is my usual practice, I would recommend individual stock Entries when aligned with broader market Entries (reversal zones). This alignment and positioning will only increase our odds while limiting our risk. My current forecast is still calling for lower prices into the fall where we could see a significant reversal and surge into the election.
Here is a continuation of the list of the individual stocks I began last week that I expect will deliver the best returns during the next major leg up. Put these stocks on your radar for now and I will be revisiting and commenting on them when they get down into their Entry Zones and align with broader market reversal zones.
COUP
CRM..long term
CRM..short term forecast
CRWD
CVNA
DDOG
DKNG
DT
ENPH
EVBG
FB
More to follow over the coming weeks..
One more thing. I highlighted CNET on June 21st and wrote…
“And finally, a little fun. Every now and then I like to look for more speculative plays. Chinanet Online Holdings Inc (CNET) has a history of huge spikes that happen very quickly followed by a collapse. It sure looks like another one might be coming. I’m not suggesting buying it but let’s watch it together (I do own a little) for a little fun.”
It went up almost 50% two days later. Check out the before and after charts. That was a nice little squeeze.
CNET..Before
CNET..After
OK..one more. Keep your eyes on TSLA. You know how much I love all things Elon. Updated forecast. Get your powder dry.
TSLA
Have a great week,
Don
PS. As a housekeeping item as I’m trimming positions I will be showing partial exits on the Open trade alerts page (ENTRIES).