Sunday, October 18, 2020
Broader Market Review
The major averages continue to trend higher. The Dow, S&P 500 and Nasdaq are holding support and the continuation higher is expected as long as we maintain the current trajectory.
I continue to be very cautious considering the averages are nearing a re-test of the previous high and the uncertainty surrounding the upcoming election. My current exposure is 65% equities and 35% cash.
I will likely begin hedging soon by buying SQQQ which is an inverse triple leveraged Nasdaq 100 product. These products are designed for short term holding periods and should only be used if you understand how they work. I will email alert when/if I buy SQQQ.
Our forecast remains the same and there is little change to the broader market projections from the past couple of months. If the market does breakdown nearer the election I will be looking to the lower reversal zones for incremental deployment of capital in those individual equities I have identified that I expect to ramp the most in the least amount of time.
Nasdaq
Dow
S&P 500
My favorite charts this week..
ARLO TECHNOLOGIES, INC (ARLO)
Coiling/consolidating nicely.
BioTelemetry Inc (BEAT)
Covid ramp pattern interruption. I own it and may add soon.
Beyond Meat Inc (BYND)
Lots of lessons on this chart.
Costco Wholesale Corp (COST)
Just look at the accuracy of the 30% move higher off the entry point that we forecast and published three months BEFORE it occurred!
I will continue to hold current positions and swing/position trade opportunities as they present. I remain cautious as we move closer to the election and look forward to the election being over so we can get back to a more normal environment.
I’m happy to answer any questions.
Don