Arete Tuesday Newsletter

Stock Squeezes continue pushing gains! 💪🤑📈

Jun 09, 2021

Stock Squeezes continue pushing gains! The list of high fliers were many today as retail investors lick their wounds on cryptocurrencies and look for the next hot thing. $CLOV $WISH $WEN just to name a few catapulted to huge percentage winners. It is fascinating that as we see outflows to cryptocurrencies investors are seeing returns they thought were only possible in alternative investments. What does this mean? It means we are going to see larger capital inflows across the board in equity investments. As we discuss the meme stocks and make light of the moves, we are really seeing large pools of capital come into the equity markets Over 50% of AMC trades are from dark pools as we mentioned in the last newsletter. How much of the meme stocks is being traded there right now is anyone's guess. I can tell you one thing It’s not a small number. Everyone is chasing performance. A rising tide lifts all boats and we are seeing ALL the indexes setting up for higher prices.

Today the $SPY made an all-time high of $423.38. $AAPL and $MSFT are both setting up to push to new highs. This will lift the $XLK in which they are 40% of. The $XLE made a new yearly high of $56 and completely filling the pre-pandemic gap. the $XLF continues to act stronger and is one of the three main sectors driving the $SPY. Expect it to break out of the base shortly. The $IWM is clearly above the wedge line and its $231 resistance has now flipped from resistance to support. After a 5 month base I am looking forward to new highs! The $TNA trade looks great and can add on an all-time high on the $IWM. The $QQQ is ready to move but is lagging the other indexes based upon its outperformance over the past month. We are simply resting which means large-cap tech might underperform the secondary names for a little bit. Key Levels are marked. Let’s do this!

Let’s Look at our Indexes!

Let’s Look at our Stocks!

Subscribe to YouTube! 👈Subscribe and turn on notifications. Below is a video of today’s market movers! It’s packed with actionable ideas. I walk through several trades. Consider making these videos a daily part of your routine. I go over the lessons from the trading of the pro series during them and point them out in real-time situations. I walked through the $WISH trade step by step in this video. ALSO, WE DO A DAILY PREMARKET VIDEO LIVE STARTING AT 8:45 AM EST. To get ready for the day. It’s packed with information.

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 as well as other ideas. I called levels on $WISH twice today.

You can see the timestamps.

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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!

The Chasing Alpha Newsletter

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