Welcome back to the blog!
Stocks are still mostly grinding sideways or up slightly. Below is the weekly chart of SPY.
I don’t like prices up here for going long unless I was doing short weekly trades (less than 2 month holds). Over any longer time period (>2 months) and I think we are more likely to be lower than higher, we will see what happens. I’d want to be long near 300 and 275 for medium term swings (~3 month hold). Below I discuss some pullback trades I plan to go long on if SPY does pullback another 7% (to 300) and 15% (to 275).
I’m considering going long on Tesla, Netflix, Square, and/or Nio on any more sustained weakness for a short/medium term swing trade. For example, although I don’t like Tesla from a fundamental perspective at all, the trend is still up, and once they report earnings next week, it could present a nice “buy the dip” opportunity for a swing trade back up.
Same goes for Square, Nio and Netflix – although I think they are extremely expensive from most metrics, they present good short/medium term swing trading opportunities.
I plan to hedge my bets with a couple of shorts in the technology sector to reduce my overall sector risk when going long though. Below are the charts of Tesla, Netflix, Square, and Nio, and where I plan to enter.
Tesla daily chart below (long at 900-1000):
Netflix daily chart below (long at 400-450):
Square daily chart below (long in 80-90 range):
Lastly, Nio daily chart below (long at 8-9):
Enjoy the rest of the weekend, and see you next week (unless we get a large market sell-off and I swing long 🙂