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RoboStreet – August 27, 2020
Washing Machine Rotation Still Favors Work From Home Stocks
Although COVID-19 numbers are showing gradual improvement, there are some consumer and business trends that are going to be embedded from the pandemic. Fed Chairman Jerome Powell stated, “we have not changed our view that a longer-run inflation rate of 2 percent is most consistent with our mandate to promote both maximum employment and price stability.”
The problems he and the rest of the Fed face are structural changes in efficient-technology, a mountain of debt that needs to be serviced by a zero interest rate policy until their balance sheet can be unwound and a full rebound in the labor market will be more difficult as companies have learned to operate with many fewer employees.
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.
It’s nice to target future inflation at a 2%+ rate, but achieving it when the natural forces favor deflation will be a complex task to accomplish. Thursday’s session saw bond yields rise and financials and REITs responding well to Powell’s rhetoric, and shares of Microsoft and Walmart carried the Dow strongly higher after it was reported the two companies are looking to partner up in buying the U.S. division of TikTok.
The market continued to trade above the $340 level. The treasuries sold off today (the TLT traded below 50 days MA) and the DXY continues to go through the bottom building process and trading in the narrow range.
Both the treasury and the currency markets support the continuation of the bull market. Industrial, Small Cap, Financial, and Energy sectors were underperforming, while technology, metals, and consumer discretionary stocks outperformed for most of this week.
The short-term bottom is at $330 and potentially can be retested early September. SPY longer-term overhead resistance is at $360. I would be a buyer using any short-term corrections and use dollar-cost average to accumulate positions. Based on our models, the market (SPY) will trade in the range between $330 and $360 for the next 4 weeks.
It’s pretty clear that more remote business meetings and fewer face to face meetings are the future and cutting-edge companies Zoom Video Communications (ZOOM) and top-rated firewall maker CrowdStrike (CRWD) will see their businesses continue to expand even when life normalizes after the coronavirus is arrested.
Both stocks are top holdings of the Direxion Work From Home ETF (WFH) that hit a new all-time high this week.
Applying our AI tools, we get two strong readings for both CrowdStrike and Zoom. Shares of CrowdStrike trade at $118 and our Stock Forecast Toolbox shows near-term resistance up at $130 while shares of Zoom trade at $298 and our AI-driven price target is up at around $343. Both stocks are showing excellent momentum and are strong candidates to be added to our RoboInvestor Portfolio.
RoboStreet is an unrestricted advisory service where our AI platform filters, evaluates, and ultimately ranks which stocks and ETFs we should commit capital to. We’ll invest in equities, bonds, gold, silver, oil, gas, currencies, and volatility. We’ll also use inverse ETFs to short sectors or indexes depending on market conditions.
Everything that has blue-chip liquidity can be traded, and most of our recommendations have options chains. We don’t want to leave anyone out of the fun or the prosperity of having an AI system in place that sports a Winning Trades Percentage of 89.17%!
Just in the past two weeks, we’ve booked solid gains in Workday (WDAY), Target Corp. (TGT), Abbott Labs (ABT), CVS Health Corp. (CVS), and Rockwell Automation (ROK).
This is no time to sit back and maintain business as usual if you’re not booking profits on almost 9 out of every 10 trades. There is no better time than the present to add some fiscal stimulus to your portfolio by way of applying the hottest AI platform available today to retail investors. We’ve scored 31 straight profits in a row without a single loss.
Be part of this winning streak and put RoboInvestor to work this week and get your first two trades this Sunday evening so you’re locked and loaded to make money come Monday morning. Change the way you make money from some of the time to all of the time and grow your net worth consistently week to week, month to month, year to year.
I look forward to personally welcoming you to come aboard as a new member of our family RoboInvestors. It will be one of the best life-changing decisions you’ve ever made.
“I’m investing my own money in each and every stock as my AI platform identifies.”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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