Introduction
Investors,
Welcome back to another iteration of ‘The Weekly Selection’, where I cover my thoughts on the market, what’s upcoming and some other little nuggets for your enjoyment.
Before we begin, take a look at the recent article posted last week:
This is the most recent deep dive research and a quick educational piece. Additionally, check out the latest Podcast at the link below, as well as some other socials:
Indices
Broad markets continue to selloff amid mass panic under Trumps America. We are seeing tremendous pressure to heavily globalized businesses, as stated in The Weekly Selection annual review.
As this happens, its been important for me to focus on value and less on short opportunities, as I believe every market swing in one way or another to be an overcorrection, and now we are starting to see some high quality businesses at reasonable prices. For the most part, it is feelers on some of my top themes such as nuclear and cybersecurity, as I think these are industries that will continue to grow well despite potential economic slowdown.
SPY 0.00%↑ shown above. I like the strong close, as we know the close is more important than the open.
$QQQ has a much worse look imo. The double top after a U shaped consolidation is not a great look, and I think this speaks to the weakness in big tech more than SPY does.
Parabolic Trend Analysis
DXCM 0.00%↑ experienced a 1400% run prior to Covid with the development and rollout of their G6 diabetes monitoring device. This run was aided by some small economic tailwinds, as well as a technological advancement and strategic partnerships to maximize customer acquisition.
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Upcoming Themes
Im late to the game with this, but China has been a rather favorable trade for a number of weeks now. Personally, I dont trade these names as I believe they are too prone to shenanigans, however I cant deny the technical action in this tough US tape.
BABA 0.00%↑ on display here. Great setup and value is there. Might be a little stretched for now though.
Insurance is another really nice group right now: LMND 0.00%↑ ROOT 0.00%↑ are the most notable.
Root breakout to all time highs from a tight, upwards sloping setup. Generally would like to see sideways action however through this tape I actually don’t mind it. LMND more of a classic flag.
Space remains active through pullbacks. RKLB 0.00%↑ ASTS 0.00%↑ are the most notable of the group. RKLB 0.00%↑ more of a double bottom play, while ASTS offers a classic breakout look.
ASTS 0.00%↑ on display here. Flag on flag on flag generally ends one way…
Copper via SCCO 0.00%↑ is something I am also watching. Commodities markets have been hot, per Gold, and if the international trade is playing out, its likely Copper will be there to follow up.
SCCO 0.00%↑ on display above.
That’s all I have for you this week. Be sure to subscribe and share this post with friends.