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RoboStreet – January 7, 2021
Market Volatility Looks To Be Dead Ahead
Only one week into 2021 and already a blue sweep of the White House and Capitol Hill has been realized that likely means higher corporate and individual income taxes, more stringent regulatory oversight, and massive deficit spending. The market’s reaction was pretty counter-intuitive, investors don’t seem to care, and stocks rallied.
There are also two more strains of the Coronavirus found in Europe and South Africa that are compounding what is a slow rollout of the vaccines both in the U.S. and abroad, with many projections now pushing out widespread inoculation by many more months than what was previously forecast. Again, nobody cares, at least not yet.
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 new atmosphere presents a potential landscape of operating in a sphere of unknown quantities for the pace of the economic rebound and what progressive policies and big-spending will come from Washington. Rest assured there will be plenty of both, and the way higher in the post-election move for the stock market was a surprise. Even as my bias was to see the market undergo some consolidation, the extension of the rally this week has to be respected. The SPY has traded in a wide range and closed higher as runoff elections won by the Democratic Party. Metals, Materials, Industrials, Healthcare, Energy, Small Cap and Banks (reflation and additional stimulus) made an impressive rally. Technology stocks sold off as more regulations and additional corporate taxes are expected in the future.
The SPY main support remains at the $364 level. The U.S. Dollar and the Treasuries continued to trade in the downtrend. As long as the SPY is trading above the $364 level, the SPY will continue to make incremental gains and can reach the $375-$380 level first half of January.
This week is being highlighted by the 10-yr Treasury yield breaching the psychological 1.0% level for the first time since March of last year. The pop in yields sent the bank sector higher as spreads on net interest income widen thereby boosting profit margins from borrowing at Fed Funds and lending at rising rates. It’s huge for the bank’s forward outlook and presents a bullish scenario for bank stocks in general.
Against this promising backdrop, our RoboInvestor advisory service is long shares of JPMorgan Chase & Co. (JPM) that is the unabashed leader in the banking space. As America’s largest bank is arguably the world’s most powerful financial institution outside of a central bank, JPM is the institutional go-to bank stock of choice when big money backs up the truck to own the sector.
Not only do the traditional charts show improving technical for JPM, more importantly, our proprietary artificial intelligence platform is giving the stock a near-term buy signal that we use at RoboInvestor to guide our buy and sell points with each recommended trade. Below is a layout of our Stock Forecast Toolbox, one of our prominent AI tools that gives us 10-day to 6-month probability data for the direction of a stock or ETF.
As we apply JPM to the AI model, we get a Model Grade “B” rating with a Predicted Resistance high price point of $140.49 for the next 10 days. Not bad, when considering the stock is trading just under $132. Looking at the fullness of the tables below, one can see the preciseness of how our AI data lays out the path higher in the days ahead for what should be a steady rise in JPM shares.
When a sector is in the very early stages of a major breakout, we want to press our position and add one or two more stocks in the sector that have leadership qualities. In this case, one of the two dominant regional banks in the U.S. is PNC Financial Services Group Inc. (PNC) that allows commands a premium to its peers. Here too, when we apply our AI-driven Stock Forecast Toolbox to shares of PNC, we get a Model Grade “A” rating that is a green light for owning the stock in the near and intermediate time horizon. Once again, our system identifies just how the stock should trek higher in the next two weeks, from $156 to $174, implying a move up of 11.5%.
Working with such precision tools based on proprietary algorithms I’ve developed over the past decade gives investors an incredible edge in eliminating unknown risks, maximizing underlying data that makes for directional moves both up and down, and being right on most of your trades, week after week, month after month, year after year. Our RoboInvestor track record is one I’m very proud of in that we can claim that 9 out of every trade we recommend generates a profit. And any losses we may incur, which are far and few between, are minimal.
Members of RoboInvestor have booked a string of profits in the past seven weeks that includes only one losing trade of -2.9%. This is the power of AI at work – always thinking, always learning, always compiling data, and always winning.
RoboInvestor is an unrestricted investing service. We will invest in blue-chip equities and ETFs that involve indexes, sectors, commodities, interest rates, currencies, and volatility. It’s a no holds barred system. We go where our data points us to the highest probability strategies for profit potential. RoboInvestor brings a highly complex AI system to a simple set of trading instructions. We do all the thinking. All you have to do is follow our detailed trade parameters and click your mouse. Start 2021 out with a proven AI system that is printing profits 90.96% of the time your investment capital is at work. For the super affordable cost of becoming a member of RoboInvestor, I truly welcome the opportunity to welcome you as a sojourner to building wealth in a manner that is a daily science of the precise management of money. Join today and let’s get wealthy together.
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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