The S&P500 Index ETF (SPY) weekly chart shows a continuation of the bull market from early 2009. There is no reason price can’t go higher from here.
S&P500 Index ETF (SPY) weekly
Nasdaq has made new highs from the previous highs in 2000, international stock indexes are on the move higher and volatility remains low.
We are on board as we have been getting long internationally from January. See Trade Alert page on web site for more details.
Certainly, there is always a possibility of a single digit correction but that’s part of the game.
Remember, we are seeking to participate in the majority of a bull market and avoid the majority of a bear market by using risk management strategies and strong price correlations.
The Bull appears to be gaining more strength globally.
Continue to hold SPY, QQQ, XLK, IYZ and all other open recommendations.
Here’s a snapshot review of open trades recommended so far in 2017…
We’re up on 11 out of 13 open recommendations as of today.
iShares 20+ Year Treasury Bond Fund (TLT) weekly
Bond prices have been rising in spite of all the talk about rising rates. Continue to hold our January recommendation to buy TLT.
Tesla Inc (TSLA) daily
We recommended buying TSLA on April 4. Price is up about 8%. Continue to hold. Earnings are announced Wednesday, May 3 after market close. Hedge recommendation trade alert at end of this research note.
iShares China Index Fund ETF (MCHI) daily
We recommended buying MCHI on March 29. Price is up about 2%. Continue to hold.
iShares South Korea Index Fund ETF (EWY) daily
Recommended on March 29. Price is up about 1%. Continue to hold.
iShares Emerging Markets ETF (IEMG) daily
Recommended on March 29. Price is up about 2%. Continue to hold.
SPDR EURO STOXX 50 ETF (FEZ) daily
Recommended on March 29. Price is up about 5%. Continue to hold.
Schwab International Equity Fund ETF (SCHF) daily
Recommended on March 19. Price is up about 3%. Continue to hold.
Regency Centers Corp (REG) daily
Recommended on March 19. Price is down about 3%. Continue to hold.
Facebook Inc (FB) daily
Recommended on January 17. Price is up about 20%. Continue to hold.
Lamar Advertising Co A (LAMR) daily
Recommended on January 17. Price is down about 4%. Continue to hold.
Global X Social Media Index ETF (SOCL) daily
Recommended on January 17. Price is up about 17%. Continue to hold.
Medtronic PLC (MDT) daily
Recommended on January 17. Price is up about 13%. Continue to hold.
iShares India Index (INDA) daily
Recommended on January 17. Price is up about 17%. Continue to hold.
Back to TSLA…
We recommended TSLA on April 4. This is the third recommendation since late 2013…see weekly chart. The April recommendation was a momentum play after a breakout above the all time high made in 2014. Earnings will be announced tomorrow, Wednesday, after market close. There is always a chance of a pullback to the breakout, $290, before completing another leg up.
Tesla Inc. (TSLA) weekly
I have no idea what will be announced but I do know auto sales suck and Ford (F) looks really ugly.
[Trade Recommendation] So, I recommend short selling Ford (F) for two reasons.
- As a hedge against a bad TSLA earnings announcement.
- Ford is a good short sell candidate on its own with a first target about 20% lower from current price.
Ford Motor Co (F) weekly
TSLA is not highly correlated to Ford so it’s possible to get a positive double whammey (technical term) with Ford going lower and Tesla going higher.
In conclusion, price action globally is very strong. Anything can happen at any time. All you have to do is…
Trade Smart,
Don Roth