Here’s where my focus lies with the trade deal on the line and another earnings week.
Right now, we have a trade deal on the horizon — which, most likely will be another catalyst to move this market. Now, we don’t *know* what’ll happen, but I’m putting my money on a resolution. Neither President Trump nor President Xi have enjoyed seeing their stock markets throttled. So as for my analysis, both want a resolution — sooner, rather than later.
As we start a new (shortened) trading week, I wanted to let you know where my focus lies…
While the US may not get several stipulations President Trump wanted, a resolution is one that I believe the markets will rally further on.
If, perhaps, there’s more indecision — it could give the markets a chance to take a breather. One, that I’d happily invite. A nice breather (while I don’t think, based on past history, it would be a correction to new lows) would only give us better buy entries for the next leg up.
Over the course of the past 6 weeks, the market has shown its resilience and Trump and Powell have shown how far they’ll go to ensure the market remains stable. With the unchanged fundamental backing of the market, plus the ‘Powell Put’ persay, I’m focusing to the upside of this market, using any gap downs or pullbacks for entries in long positions.
I have a couple favorite areas of focus right now.
These come from my lists, the Phoenix Flyers.
What are these?
These are aggressive, high growth areas of the market that I ONLY like to focus on when the market is decidedly bullish and ‘stable.’
For those of you in my Finding Phoenix class Saturday, I hope you enjoyed the full lists. We’ll be trading with them this week. If you didn’t get a chance to join me, don’t fret, you can pick up the recording and the full lists HERE (and still join me for my live trading sessions).
Here are my themes —
Phoenix Flyers:
Cyber Security
Cloud Kings
Semis
Honey Badger Don’t Care
High Short Interest
I’ve also included a list based on Chinese internet companies.
Why these lists?
Well, with a trade deal on the horizon, and many traders expecting the market to fail at the 200 SMA on the S&Ps last week (which it didn’t), we may be able to get some aggressive plays to the upside this week. I’m focused particularly on any company that’s reporting earnings in the next few weeks, and is close to new, all-time highs.
Why?
They have relative strength, and can make great short-term options opportunities on breakouts.
Now — always remember, we never want to get too ingrained thinking ‘what we think’ will happen. That’s generally when Mr. Market shows you who’s in charge.
That’s why we have Phoenix and always start with the ‘Big Picture.’ She’ll tell us when the tide turns. As of now, the tide hasn’t turned south. Until it turns, this is where I’m focusing.
I’ll check back in with you later this week and revisit how these Phoenix Flyers are flying.
