There’s a resolution on the horizon

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.

2 thoughts on “There’s a resolution on the horizon”

  1. Thank you Danielle,
    Your class was awesome and the lists are so helpful. Up three grand today alone because of your assistance. Julie. (JoonBugJoon)

    Reply
    • Hey Julie – So glad you’ve found value and enjoyment in the class. Which Phoenix did you find today? Good trading – Danielle

      Reply

Leave a Comment

Up Next...

Using Butterflies to Short Stocks

Market Volatility Market volatility has picked up, meaning there are more downside opportunities than before. When the market starts pulling back, I always try to quantify if it’s a normal “buy the dip” opportunity or if it’s a little bit deeper of a move that means it’s time to short some stocks. Identifying Bearish Alignment … Read more

Read More

Critical Stock Market Red Flags

With earnings season just beginning, we are entering the most risky time frame for the stock market. Netflix earnings week is already kicking off with a bang. The Nasdaq sold off yesterday, ending the day down -1.67%, with critical stocks like Tesla down -5.59%, Microsoft down -1.97%, and Meta down -2.28%. This occurred after escalating … Read more

Read More

Using Conservative Sell Signals To Exit

Hey traders! In this week’s trade review video, I discuss the conservative signals I had that caused me to take a cautious profit on Amazon. Sometimes I’ll take conservative profits, especially in a case like before CPI data when a news-related event is upcoming. Now, of course, if you take conservative profits, you cannot capitalize … Read more

Read More

Subscribe Today!

Want my up-to-date analysis, setups, top trading tips, and more? Be a Five Star trader, and join my free newsletter today!

Sign Up Now
all-as-seen-on-logos