Arete Sunday Newsletter

We are setting up perfectly🐰🥕🐣

Apr 04, 2021

The more I look at charts, the more I see that we are setting up perfectly to continue the upward trend of the Nasdaq. As noted in Thursday’s Newsletter we are setting up for a push. What is becoming clearer is that this push could be very strong. Let me explain. To start with Nonfarm payroll numbers were released on Friday. Nonfarm payrolls rose by 916,000 in March, the unemployment rate declined to 6%. The job growth was well ahead of estimates for 675,000 and the fastest since August 2020. Revisions also added 156,000 jobs to the totals for January and February. The last time we had payroll numbers this good the Nasdaq was basing and we moved up 18% in a month and a half. A measured move over the same time horizon puts us at $340 on the $QQQ right next to the lower trend line of the past upper channel. The Philadelphia semiconductor index broke above its resistance of $428. Also, we have the single highest volume day on the index in 3 1/2 years. This index is a precursor to the $QQQ. In other words, this sector index tends to move first before a big move in the Nasdaq. Finally, it exploded to an all-time close of $439.58. Not to be outdone The ten-year treasury looks to be forming a double top at the 1.76% level. This could be due to the payroll numbers. This could also lead to less inflation risk. Finally, take a look at the US Dollar. The $UUP which is how we will track for our purposes has been making higher highs off the recent bottom and closed above the 200 day moving average last week for the first time since May 28th 2020.

The $SPY and $IWM both look. I went over key levels on Thursday and nothing has changed since then. Please see the key levels below. You will also see some new buy ideas today and possibly more tomorrow. It is IMPORTANT you look at the BPAs as they might not have triggered yet. It is possible that Bitcoin could come on the reduction of inflationary risk call I am making. Please note the chart.

Finally, there is a link at the bottom for The “stocks to buy this week “video. Last week’s video had $KLAC, $LRCX, and $SOXL in it. They were up 15% -30% on the week respectively.

Let’s look at our indexes!

Let’s look at our Stocks!

Subscribe to YouTube! 👈Subscribe and turn on notifications. “Trade Like a Pro” series, I added an RSI indicator instruction video. Below is the stocks to buy on the week video. It’s worth your time.

As always all investment decisions need to be made by the individual. We all have different risk profiles.No two people trade the same. Understand the buy points, stop losses, trims are suggestions. For example on stops. I want to see it close there at the end of the day.

You need to develop your own process. I am willing to help and offer feedback.

Please make sure you Subscribe to Twitter! 👈and turn on notifications. There are times my updates are timely in regard to the Newsletter. I called key levels on the $QQQ and $SOXL on Thursday

Any questions please message me.

Thank you again for all the messages telling me how this Newsletter improved your performance and made you a better trader!

The Chasing Alpha Newsletter

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