JPM Alert: Buy! Buy! Buy!
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A delayed reaction by the bond market, to the downside, triggered a steep sell-off for the tech sector and Nasdaq as a whole. The correlation between higher bond yields and lower growth stock prices is very high. And yet, as earnings season approaches, I would expect some rotation back into growth due to very bullish profit forecasts for tech.
The back and for between growth and value is keeping a lot of traders working overtime, as most have made their living in the tech sector and know and trust these stocks, whereas there is far less experience getting a good feel for other cyclical sectors that have shown excellent momentum. But yesterday’s $6 plunge in oil prices shows just how fleeting the cyclical trade can be and is why traders are lured back to tech when the sector shows any signs of reversing higher. It’s where most traders are happiest.
CURRENT TRADING LANDSCAPE
What's true happiness? In a book that I recently read, the largest percentage of people said that it is the freedom that defines happiness. Freedom to do what you like, when you want, and with whom. But how can you do what you want, when you want to, without money?
The trick is to make just enough money to be able to do what you want, when you want to, as long as the what and the when is not too expensive or too often, respectfully. Otherwise, you just have to make more money. However, chasing money will not make you happy. So, how do you find that balance? When is enough good enough? I love these self-help books, just keep trading folks. Compounding is crucial in trading.
The SPY reversed yesterday's gains after the Fed decision yesterday. Growth stocks led a decline on the higher interest rates. The main question is this a new leg up in the market or will there still be more volatility next week. Short-term, the SPY range remains between $380 and $400.
The SPY is reaching overhead resistance at $400 and can retest recent lows at $380 level in the next two weeks (still a low probability event).
The DXY is losing its momentum. The TLT is in the process of building a bottom with incremental declines in the treasury prices.
The bottoming process has started and the worse part of the sell-off is now behind us. The market will finish the bottoming process in the next two weeks and will resume bullish momentum by the end of March-early April.
I would be a buyer using any short-term corrections and use a dollar-cost averaging strategy to accumulate positions. If you are trading options consider selling premium with May and June expiration dates.
"BUY" signal based on the Aggressive Power Trader Portfolio for tomorrow is at $385 level using SPY and "SELL" signal is at $390 for short-term traders.
Based on our models, the market (SPY) will trade in the range between $380 and $400 for the next 2 weeks.
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Not only that, but every trade I make is logged in detail for you to review at any time. You can see my entire trading history, updated LIVE, so that you can see, learn from, and even copy my trading strategy.
Our DYNAMIC Power Trader service continues to power up great trading profits. Each week on Sunday, our expert traders use our AI Tools to provide the Top Bullish and Bearish Stocks, each with an Entry Price, Target Profit, and Stop Loss.
Also, note that the Weekly Power Trader signals are meant to last for 5-10 days as long as the vector confirms the same direction as the original pick, for stocks we use a target gain of 2% and stop as 2% of the stock price.
Signals have averaged over 75% accuracy in my live trading since inception. Sometimes we hold position 2-5 days by using options (selling OTM BULLISH PUT spread) and targeting 1% target gain and 1% stop loss using stock price. Green color should be interpreted as a bullish signal and Red color as a bearish signal.
How To Use Our Signals
Once you become a member, I encourage you to review our Live Trading Room recordings to see how I trade Aggressive Power Trader signals in my account. A snapshot of how we produce our Live Trading Room Sessions shows how we pack in a lot of information that can be accessed from whatever device your driving.
As a reminder, consider buying near the "BUY" level with a "10 days prediction" higher than the close price. In our live trading room, I usually hold a position for 1-2 days.
I allocate less than 5% of my portfolio if the position is being held overnight. On average, less than 1% of the portfolio should be at risk, if you own a position for less than one day.
I enter a position at the predicted LOW (BUY) price or yesterday's close price. My stop loss is 1% and my target gain is 1% of the stock price. I target 75% accuracy using these signals.
Few subscribers asked about Options trading using the signals provided. Please review live trading room recordings. I often sell OTM credit put spread using weekly options and collect 0.5% using stock price. For example, if stock is trading at $100, I would sell OTM put (strike less than 100) with option BID price close to $0.5.