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

Markets with no fear and on a tear...

Markets with no fear and on a tear...

Markets have been on a tear after the huge drop in Q1 March when we dropped around 12K points on the DJIA and have recovered over half of these points already.. But that is not the main story here - the DJIA, a closely monitored daily index is not reflective of what is happening in other bubble areas of the NASDAQ and software companies which are trading at multiples unheard of even in the dot com bubble days... And no matter what anyone says - or the talking heads on Bloomberg or CNBC - these prices for the stocks are driven entirely by nothing else other than Fed policies and actions. There call to basically monetize anything and drive rates to ZERO during this pandemic - along with now going as far as loaning money to businesses is beyond belief.. The Fed has clearly crossed its mandates without any regard for the future of this nation or the debt that is entailed on our future generations. We utter or throw words of TRILLIONS as if it is a joke - now the US is indebted and the Fed's balance sheet is now growing like a weed..with no Roundup.. Over $6T and heading higher - we wish we had a money printing machine to print unlimited money in our backyard with no repercussions or consequences for our actions - at least that is what these bozos at the Fed and in the government think.. It is just keep printing and there is no way in hell we will ever pay back this debt - EVER!!!

Machine trading has taken over markets - stocks are moving over 100% in a span of less than a month and not one talking head or the Fed comes and says - yup this is a bubble... Totally out of it - they will all be out of their positions at the Fed when the bills come due and earning millions at private banks/institutions and will be called saviors.. No wonder sometimes we agree with Trump - that there is really fake news and propaganda out there to keep this bubble growing - companies with ZERO revenue growth and revenues trending down and folks come on TV and analysts screaming new targets and buy recommendations - unheard of in the last 30 years.. There is ZERO sense of price discovery any more and no regard for revenue, PEs, P/S ratios, margin and name it - no metric matters.. It is just trading and some justification is provided for why the stock price is where it is.. Just take a look at AMD, NVDA, SHOP, COUP, TTD, CRWD, ZS, ZM, OKTA, DXCM and many more - trading at numbers we would consider not just in the stratosphere but beyond... But what does this mean - as long as the Fed rates are ZERO and policy is accommodative you have to trade this market and make money. Trading intraday or overnight and using options has been a really profitable way to make money.. And with the volatility in stocks as high as it is now - there is no way you cannot make money.. Machines are trading and the where the machines are buying and the market actions and stock intraday volumes are very reflective as to how the action during the day is going to be.. The list above is very useful for making money and monitor these stocks and you will see what we are saying - SHOP has moved over 100% in less than a span of a month.. Think about it - people are giving money to the US government for 10 years at 0.3% and this stock moves 100% in less than a month... Yup it is not a bubble...!! The Fed is asleep and is actually just acting as ignorance is bliss or are fully aware but refuse to bring reality and real price discovery back to markets...We are truly in a different era and market model and what I call the Twilight Zone markets.. 

Here are some charts for your perusal - just huge moves and if you were smart you would have bought as the VIX was in BUY territory... just take a look at the bounces of the recent correction - staying long as we expect DOW and SPY to hit brand new highs next year - 40K for the DOW and 400 for SPY.. 

Also check out our buy/sell signals in charts below and on our stockcharts page along with our screeners - truly awesome.. 

We will be adding unlimited trading for $30 on our site soon - so for all you options traders (stock trading is ZERO commission) and unlimited options trading will be $30.. No one offers that except us in partnership with Tradier brokerage - options commissions on per contract basis are half of all the other brokerages.. $0.35 per contract vs $0.65 for all others.. The $30 unlimited trading has no limit or minimums..

  

 

and many more on our site at www.trucharts.com/stockcharts.aspx.

make money while the sun shines.. long any tech stock.. Wait on leisure stocks for now till August..

Bob B.

Founder - Trucharts.com