Arete Thursday Newsletter
The stock market is Chop Suey🍜🍜
The stock market is Chop Suey and we are in the middle of it. We are constantly looking for signs of the bottom. Day in and day out we see some hopeful signs but then a new level comes in and we go lower than previously thought. We sell and then watch the market rip up for a period. We chase only to have it come back down. A famous quote comes to mind:
“There is a time to go long. There is a time to go short. There is a time to go fishing.”
-Jesse Livermore
Right now we are in a zone that is clearly undefined and trying to catch the bottom in an attempt “ to make your money back” can be deadly. For those that follow me on Twitter, You will notice I am talking more and more about the levels in Indexes more so than individual names. This is essentially one big trade until this gets sorted out. There are nuances between the Indexes and stocks but overall the same. Clearly, it’s risk-on or risk-off. As of the close today even with the end-of-day rally, nothing has been resolved. Most stocks are out of their channels and trying to get over the key levels of 21 and 50-day moving averages. We need the last group to be hit and come in. Right now that group is the $FB $AAPL $AMZN of the world.
Overall we broke key levels on the $QQQ. We took out $309 and rallied today but could not clear $312.76 which is our first level that needs to clear. To consider us out of the Chop Suey we need to clear the $321 level which would be the first higher high peak and over the blue trend line on the chart. Also, this would clear the 21 day and 50 day. This does not have a clear direction till that happens. We could bounce and have trades but until that happens this is not over. The $SOX index held the key level today and that’s important but there is more work to be done. Note the levels on the charts. The $SPY looks good but toppy. We need to hold the $387.46 level and the 50 day moving average. The $IWM is the strongest as I mentioned previously but look closely at the close. $218.18 is not resistance and we broke the lower trend line. Nothing is resolved.
Let’s get to the Indexes!
Lets get to the stocks!
Take a moment to look at past newsletters and our stops and where those stocks are now. Take a moment to look at how that would have affected your portfolio. ALWAYS use stops.
We will be seeing more stock ideas in the coming weeks they will most likely be shorter term. I am working on a faster delivery system.
Subscribe to YouTube! 👈Subscribe and turn on notifications. We have been doing daily videos and they have been quite helpful by the responses.
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 $NVAX $TSLA today.
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Thank you again for all the messages telling me how this Newsletter improved your performance and made you a better trader!
Wishing everyone Massive success!
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