Markets Panic amid the corona virus

Markets Panic amid the corona virus

Well, since our last post, markets have gone even further down and have pretty much wiped out the whole Trump elections gains in a matter of two weeks.  We have been warning of bubbles and valuations being absolutely out of control and now reality is starting to come into focus. We suspect margin calls are also exacerbating the selling  We were short and were long some puts and took on some longs today.. Two of our accounts was in an all cash position. 

Still there is risk and we are waiting for some of our indicators to show when buying is safe. The bottom is not in yet and you may see some wild rallies - do not buy - but only use these to unload or do intraday trading - there is lot of money to be made here.. We will see a bottom and it will be very obvious once it arrives and the pent up demand will be huge... So be ready.

if you have not taken profits in stocks that are making money like AMZN, AAPL and MSFT along with FB, NFLX - we highly recommend taking profits.. These stocks have not reached a bottom yet even with the intermediate rallies.. Check out our tweets @trucharts and check out some of the charts we post during the week. We have been short AAPL, SHOP and ROKU.. We closed our ROKU position today.. 

Again - we recommend doing intraday trading and using options to collect and get good premiums. The bottom is not in yet as much as it may appear from the oversold conditions and the VIX.. We may see a short term rally here - but use these to sell.. 

Good luck trading..

Check out our site - for excellent real time charts, quotes and fundamental data along with our excellent screener..

B. Bhatia

Founder Trucharts.com

Volatility and Markets the corona virus effect

Volatility and Markets the corona virus effect

Well what a couple of weeks its been in the markets - the volatility and point moves have been pretty staggering and unseen in the most recent times and not really since the 1999-2000 bubble and also since the GFC of 2008..all from the corona virus.. Point moves in the DOW, S&P500 along with the NASDAQ are quite a wake up call for many used to the markets that have gone up in a straight line since 2019. And yet no one was crying out that markets were in bubble territory from all valuations perspective and higher than the 1999-2000 bubble.. Yet all the analysts kept raising their target prices for already over hyped and over valued stocks. Well the virus came and fixed that - in a span of 4 or 5 trading days all the gains of 4 months were wiped out. Just check the chart below...

The market players and individual investors had become numb to any down moves and were high on everything moving up and were hypnotized by the markets - since every buying the dip was a good move - specially in the big names - the DOW stocks and the most owned stocks by the entire universe of funds - HD, MSFT, FB, GOOG, and you can easily name the whole list.. 

As you can see the markets look oversold and may have some consolidation at this level - around 25000 for the DOW and around 280 for the S&P500. The QQQ (or NASDAQ even though looking oversold - may head lower - we think there is short term risk to stocks like AAPL, MSFT, AMZN and FB - the big movers for the past few months. AAPL definitely moves lower to around 240.. We recommend taking some profits in these big names.

Here are the charts for AAPL, AMZN, FB and MSFT. 

FB looks the weakest...

The DIA chart here is showing resistance at 270 so we should expect a bounce to that level  (around 27000 for the DOW). 

Although the markets have been volatile - it is a great time to make money.. The volatility creates huge opportunities to make money with intraday or overnight trades with the right stocks. Many stocks are moving over $10+ a day and that is a huge bonus to make money. It is easy to find these stocks and these are very standard big names like AMZN, MA, V, SHOP, ADBE, NFLX and many more. We recommend more day trading rather than holding overnight positions.

We really like gold and you can check our tweets and blogs and our call on gold since it has been at 1100 and now has had a move to around 1700 a move of around 40%+.. We still like gold and are long physical bullion and buying more... Our target is 2500 as fiat currencies are failing and in the end there will be some reset as the debts are unsustainable as are the promises being made by governments. We expect INR (Indian rupee to head to 80 per dollar..)

Good luck trading and do subscribe to our site - it is a measly 180 per year (premium) and 95/year for basic membership to excellent REAL TIME CHARTS, QUOTES, FUNDAMENTAL DATA, excellent scanner (screener) along with buy/sell strategy signals - we are working on sending technical alerts via sms/email...and many other features... 

Sincerely

Bob B (Founder Trucharts.com)