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RoboStreet – January 21, 2021
Markets Feeling Better About Vaccine Rollout
In light of a slow start out of the gate, vaccinations across the U.S. are picking up at rapid speed. As of yesterday, over 17 million people have been inoculated in the U.S. and over 54 million around the world. Both caseload and hospitalizations for COViD-19 are starting to roll over while the death count, a lagging indicator, is higher.
Another week of improving pandemic-related data coupled with the heart of earnings season approaches could give the market an added boost to keep F.O.M.O. trade alive and well. Incoming Treasury Secretary Janet Yellen gave a persuasive presentation to the Senate Finance Committee on Wednesday the resonated with investors as well. Her use of the phrase “go big, or go home” regarding fiscal stimulus was directed to Congress to put forth large stimulus packages.
And remember we’re not talking about day-trading here. I’m looking for 50-100% gains inside of the next 3 months, so my weekly updates are timely enough for you to act.
This week has also been marked by the upside breakout in FAANG stocks after lagging for the past two months. Big moves from Netflix Inc. (NFLX) following earnings triggered huge buying in Alphabet Inc. (GOOGL), Amazon.com Inc. (AMZN), Facebook Inc. (FB), and Apple Inc. (AAPL), driving the major indexes to new all-time highs.
The SPY continued to make incremental gains and settled at $384 level (new record high). The question is: is this a beginning of momentum breakout or will the market settle in the range. There were a lot of mixed signals and I would wait for a break out confirmation before chasing the market further. Mega Cap Technology stocks led today (NFLX, AMZN, AAPL) supported by FXI (China), Homebuilders (XHB), and Consumer Discretionary. SMH, XME, IWM, XLB, and Bitcoin underperformed late this week.
The key support remains at $372 (worse case $364). The earnings season will continue this week with (UAL, UNP, and DFS) scheduled to announce their earnings this week, and so far, most companies reporting are beating earnings forecasts.
The bulls have been losing momentum and I still expect up to a 5% correction in January-February upon which the bull market will resume its long-term rally and will continue to make new highs into March-April. I would be a buyer using any short-term corrections and use a dollar-cost averaging strategy to accumulate positions. Based on our models, the market (SPY) will trade in the range between $364 and $385 for the next 4 weeks.
As noted in my opening comments, the FAANG and Microsoft Inc. (MSFT) are back out in front, leading the market as more money comes off the sidelines and pours into these heavily weighted index names. This rotation back into FAANG + MSFT is clearly displayed by the spike higher for QQQ.
The top ten holdings in the QQQ’s include all these stocks with the exception of Netflix Inc. (NFLX). The fact that these top ten holdings account for just over 51% of total assets shows how a broad bullish breakout of these popular stocks amplifies the upside for not just the Nasdaq, but also for the S&P 500.
When we apply our Tradespoon proprietary AI platform to QQQ, using our Seasonal Chart, we get a very powerful short-term read for the shares. Our data is showing a higher probability reading for the next 20, 40 and 50-day periods for QQQ to trade higher, which would coincide with a market topping out in the next couple of weeks, followed by a correction of about 5%, and then a resumption of the primary uptrend.
Going out further, and applying our AI-driven Forecast Toolbox, we get a Model Grade “B” rating with a Predicted Resistance price target of $386.80 over the next six months, or roughly 18% higher than where the Q’s currently trade.
Catching the right buy points and sell points is exactly what our AI platform is designed to do for members of our RoboInvestor advisory service. We’re approaching our third full year of bringing money-making strategies to the RoboInvestor community and it is most exciting to report our performance is been nothing short of stellar.
The most telling statistic we like to highlight is the Winning Trades Percentage that currently stands at 90.95%. RoboInvestor members are ringing the register on 9 out of every 10 trades they participate in, growing their portfolios at a highly consistent clip.
Just going back to the beginning of December, we booked 15 straight profits, all in either blue-chip stocks or the leading sector ETFs. Of the many benefits of the RoboInvestor service, one key area of importance is that we aren’t pigeon-holed by only buying stocks for long-only equity ETFs.
Our AI platform produces investment opportunities in the major indexes, interest rates, bonds, currencies, commodities, volatility, and bearish directional trades – all by use of employing ETFs. We operate as an unrestricted service, bring the highest quality trades with the highest-probability data to produce profits.
Take me up on my offer to go to work for you in 2021. I’ve been honing this AI system for several years, and it is always thinking, always learning to produce better results 24/7, never sleeping on the job of creating wealth.
Every weekend we produce a newsletter with 2 trades and along the way we send alerts at any time to act on selling out of positions. We typically maintain a portfolio of about 20-25 positions when fully invested and we get much smaller when our data says to lighten up.
Make the rest of January and the balance of this year a memorable one – one where you made more money, more often than you ever dreamed of. That’s our way. That’s the RoboInvestor way!
And remember we’re not talking about day-trading here. I’m looking for 50-100% gains inside of the next 3 months, so my weekly updates are timely enough for you to act.
*Please note: RoboStreet is part of your free subscription service. It is not included in any paid Tradespoon subscription service. Vlad Karpel only trades his own personal money in paid subscription services. If you are a paid subscriber, please review your Premium Member Picks, ActiveTrader, MonthlyTrader, or RoboInvestor recommendations. If you are interested in receiving Vlad’s personal picks, please click here.
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