Markets update for week of Jul 27 - Jul 31 and picks for next week..

Check out our video for this week:

In this video we discuss overall markets update, NASDAQ and why we had traded AMD stock and made over 40%. We also discuss AAPL, FB, MTCH, CAT, DE, PINS,JPM, casino stocks and why and how critical support prices are used using moving averages. We also show how to use "gap ups" in the screener to find stocks that are poised to move higher and why volume is an important characteristic. We show which stocks we are going to buy next week and how you could have made a very good return if you had traded AMD as we had picked it. So please do subscribe to our youtube channel and also to our site - you could have paid for the site subscription many times over just with the profits from AMD. Good luck trading and leave us your comments, questions or email us. Follow us on twitter @trucharts.

Trucharts.com market udpate Jul 25. AMD, WYNN, LVS, INTC, QQQ, AAPL, MS...

Trucharts.com markets update Jul 12 and stocks to buy for next week. ROKU...

Day trading at extremes and the fastest market bounce back

Day trading at extremes and the fastest market bounce back

Here we are - after being in the shortest bear market ever and the Fed unleashing the biggest money printing spree ever known in history, the markets responded and we recovered from the lows to climb back in the most ferocious fashion.. 

We bounced over 8K points in the DOW and crossed an all time high for the NASDAQ with everyone joining the bandwagon buying left and right - and the biggest short squeeze driving valuations and PE ratios one cannot even fathom..much less explain.. Analysts falling head our foot raising their price targets with no regard to the outcome or their actions... No justifications for their actions..Wow - sounds like the 1999-2000 bubble.. For companies to trade at 10x revenue is now considered to be cheap.... Then we have our wonderful day traders who proclaim they have found the holy grail to making billions and chastising greats like Buffet - you know who we are talking about.. 

These are crazy times with the Fed backing everything - we printed over $2T in a matter of 2 months and it took the US over 200 years to get to that number in debt... Think about it for a second.. We are going to kill the dollar and have severe inflation in the future - and the only safety is owning gold or precious metals. We stand steadfast in our belief that gold will rally to 3000 after the longest consolidation..

Tech stocks like AAPL, AMZN, GOOG, FB, MSFT - the FAANGS are trading at valuations in the TRILLIONS... These valuations rival GDP of several nations combined.... And yet not one analyst comes and says - hey we are in a bubble - those words are uttered by the smallest minority.. What we are seeing will leave the tulip bubble in the dust.. 

This is not over yet and we expect this to move much higher.. Our targets are still in place for DOW to get to 40000 by next year and 4000 for SP500.. Tech stocks will trade at numbers that will be dizzying... So keep buying - we are seeing breakouts even when the economy is not doing well from a consumer perspective... With so many unemployed and so many jobs lost, businesses shutting down - the Fed has basically backstopped the rich and are on the path to making them richer... This will drive housing prices higher and create another bubble in that sector... Long housing stocks.

Again - we recommend these stocks with caution knowing that the trend is still higher...

ZM         - chart here - https://trucharts.com/stockcharts.aspx?TICK=ZM    

PTON     - chart here - https://trucharts.com/stockcharts.aspx?TICK=PTON

BYND    - chart here - https://trucharts.com/stockcharts.aspx?TICK=BYND

NVDA     - chart here - https://trucharts.com/stockcharts.aspx?TICK=NVDA 

Be mindful of stops = only risk money you can afford to lose - day trading is still working well and is very profitable. Along with use of options - the returns are even better.. Use small leverage - no more than 2:1 but keep close stops and watch the charts. 

We are enhancing our site and provide real time quotes and will be adding trading soon.. Keep an eye out as you will have access to our site once you trade through our site zero commission trades, along with unlimited options trading for $30 per month.. Our buy/sell strategies are excellent and work well. But be mindful, these are technical signals only and are not driven by news etc..

Good luck trading.. We will post some new videos soon on how to use our screeners to find stocks.

Trucharts Founder

Bob

Friday's Nasdaq Tech Bloodbath

Blog 6/10/2017 and 6/12/2017 

Trucharts.com

Was it a tech carnage or not?? Friday was a huge rollercoaster ride but we made out really well!Well, Friday started out like a good day in the markets with many of the FAANNG stocks hitting new highs and then reversing ending lower. AMZN moved around 100 points and we were very fortunate that we had closed our puts and were long the lower puts on many stocks and all of these made us some really good profits.We have been short NVDA and are staying short - we know this is a bubble stock trading at ridiculous valuations. Many of the stocks on the NASDAQ have been going up non stop in a straight line up with almost no end in sight - it looked and still looks like the bubble of 1999-2000 with a different feel. Everyone feels invincible and like a investment pro. It is all easy to think that one is a genius in investing when making money is so easy. It is days like Fridays when folks start getting margin calls that we see selling and then everyone tries ti buy the dip. We will have to wait and see if buying this dip makes sense. 

Now there was one key thing we had noticed on Thursday even when stocks were moving higher - MSFT was acting weak and that was a sign that something was changing. Everyone in the midea and online (CNBS - Cramer) has been harping on and on about NVDA - a chipmaker which momentarily reached a market cap of 100B - yes 100B and selling at price to sales ratio of around 12+ - no semiconductor company has ever traded at such a huge multiple or valuation. Also it is very common to see when stocks are high flying that analysts and idots on TV come out and try to justify the valuations of such stocks - vocalizing terms which they have no idea about like AI and VR etc. NVDA is a chip company - end oif story and their sales will never ever reach the lofty valuation it carries. NVDA is primarily a graphics chip company with lot of competition and this is a very hyped stock. We highly recommend taking profits, if long, and we are short and long NVDA puts.So what happened Friday tech stock bubble - we think there is a shakeout that took place. Technicals are still strong and until we actually see real technical breakdowns - we have to count it as a shakeout. In addition, it would be prudent to take some chips off the table and ring the bell on profits. Many of the stocks bounced up from their 20day and 50d SMAs. Very typical when machines are running the house. We can expect some bounce but we are also seeing rotation out of tech stocks, which we mentioned have been going up in straight line fashion, into energy and other sectors. 

Financials were strong but we still think this was a dead cat bounce. We like BAC and some financials, in energy we like beaten down names like SLB for short term plays. We also like some retail names - short term trades - GPS looks good. We would short SBUX, NVDA and LRCX. Although the real technical weakness or clear breakdown is not evident yet - have tight stops above at recent high. We suspect there will be some bounce back and maybe this was just a shakeout. We will have to wait and see confirmation - as there were no breakdowns below 50dSMA. NVDA was a classic textbook climax high reversal.

Financials were looking strong as these were oversold and oil bounced with gold closing lower. We need to watch for follow through on these next week. GPS chart looks good and we are watching BABA to see if it consolidates here for a breakout.Monday was a nice bounce back day. Many good formations on charts - need to watch closely - still short NVDA.Good luck trading and checkout our video on youtube and follow us on twitter (@trucharts). We will start posting more videos on youtube on how to use our site more effectively for trading decisions. Do subscribe - it is only $10 per month for full year subscription.

B. Bhatia
Founder - Trucharts.com