RoboStreet – December 12, 2019
More Tweets and Trade Optimism
The expression of “this isn’t our first rodeo” seems fitting for a stock market that is joined at the hip with tweets from the White House and Beijing. It is in the best interest of both the U.S. and China to forge some kind of deal, even if it lacks real depth. It would simply send a positive message that both sides are motivated to make progress.
Yesterday’s early morning rally was fueled by strong signals pointing to de-escalation in the U.S.-China conflict. President Trump tweeted that a “BIG DEAL” with China is near while The Wall Street Journal reported that U.S. negotiators offered to reduce the rate on tariffs that are currently in effect and offered to cancel the implementation of tariffs that are scheduled to go into effect over the weekend.
Trading off the Twitter wars can be hazardous to one’s portfolio, but finding the most bullish stocks and ETFs by employing our high-powered Tradespoon AI tools is how we get it done at RoboInvestor. When I mean get it done, I’m talking about printing profits on a consistent basis. Our Winning Trades Percentage is an amazing 88.68% which means roughly 9 out of every 10 trades make money. I don’t know of another trading system in the world that can boast that kind of performance – none.
The on-again, off-again “phase one” deal has held traders and investors somewhat hostage to large price swings, but it hasn’t deterred our ability within the RoboInvestor Portfolio to capture several profits amid the volatility. We’ve been locking in gains for the past month in stocks like Eli Lilly & Co. (LLY), Proctor & Gamble (PG), Target Corp. (TGT), iShares Russell 2000 ETF (IWM), UnitedHealth Group (UNH), Invesco QQQ (QQQ), iShares U.S. Home Construction ETF (ITB), BlackRock Inc. (BLK) and KLA Corp. (KLAC) – all within the past 30 days!
So, let’s assume there is some form of a deal, even if it is Phase One 0.1, what’s working for us and the market will keep working – namely sectors like semiconductors. I have a very bullish read on the VanEck Vectors Semiconductor ETF (SMH) that traded to yet another new high this week and is making a compelling move underscored by a rising belief the global economy is going to re-accelerate next year.
Semiconductor chips are a component of just about everything made for the business and consumer world aside from soft goods. But the manufacture and logistics of moving soft goods are also heavily reliant on high-speed automation and data – all supported by semiconductor technology. The biggest uses of semiconductors are memory, logic, microprocessor, and power.
In terms of market share, computer equipment, consumer electronics, telco equipment, industrial electronics, defense and space and transportation technology make up the majority of how chips are used. But new markets like data centers, cloud computing, 5G, big data, autonomous driving and IoT are all big future growth drivers and are what account for the current investor optimism.
Looking out six months, the Tradespoon Stock Forecast Toolbox is predicting a potential move for SMH to trade from its current price of $139 to $166. Such a move will offer several opportunities to profit from within the sector. In fact, subscribers of our Tradespoon Active Trader got into Skyworks Solutions (SWKS) this past week at around $104 and the stock vaulted to $112. And just recently, on November 25, RoboInvestors bought NXPI Semiconductors (NXPI) at $116.48 and the stock is trading at a new all-time high this week of $125.49 – a powerful move from a powerful AI-generated buy signal.
The Tradespoon Seasonal Chart is signaling more upside as three out of four indicators are giving “higher” readings for the next 20, 30 and 40-day periods. When I get the kind of bullish confirmation from both the Stock Forecast Toolbox and the Seasonal Chart about the sector and specific stocks within the sector, it sends out that wonderful sound we all love to hear – Ka-Ching!
While the on-again, off-again “phase one” deal has held traders and investors somewhat hostage to large price swings, it hasn’t deterred our ability within the RoboInvestor Portfolio to capture several profits amid the volatility. We’ve been locking in gains in stocks like Eli Lilly & Co. (LLY), Proctor & Gamble (PG), Target Corp. (TGT), iShares Russell 2000 ETF (IWM), UnitedHealth Group (UNH), Invesco QQQ (QQQ), iShares U.S. Home Construction ETF (ITB), BlackRock Inc. (BLK) and KLA Corp. (KLAC) – all within the past 30 days!
At present, the RoboInvestor Portfolio holds 17 positions with room for a few more that we’ll be adding next week once we’re through the weekend and the tariff issue is more crystalized. I would encourage all readers of this column to sign up today to get in on my year-end picks and set up your portfolio for 2020 in what I expect will be a continuation of our almost 90% winning percentage.
Give yourself the gift that keeps on giving this holiday season. My AI-driven set of algorithms do all the thinking, filtering and screening so all RoboInvestor subscribers have to do is follow my instructions and enter trades. It’s that easy. We do all the heavy lifting and you get to ring the register every 9 out of 10 trades. Put some holiday cheer in your portfolio today and join the family of RoboInvestors that promises to grow your wealth in 2020 in a manner that makes a substantial difference to your nest egg.
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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