MARKET UPDATE #147
Free weekly stock market education service with 3 stock ideas.
Disclaimer: The content is for educational purpose only. No investment advice. Please read the full disclaimer. |
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Hi ,
what a great week! Although the large-cap stocks had a tough week, the high growth names moved up strongly. That was the underlying strength in a lot of growth names I saw the last weeks. Maybe we see the return of growth stocks for the last 3 months of the year.
My trading video course is almost complete. I included the link for the pre-register phase below. As a newsletter subscriber you will get a 30% discount! Be quick: The offer is limited in size and quantity.
Here is what you will find in this newsletter:
Questions and answers from the subscribers forum
Comment on the current market situation: Growth names seem to come back
Stocks I am watching at the moment: $NVDA, $ZI, $APPS
Trading tips: $ASAN β My big mistake with the stock
If you have questions, please use the subscribers forum.
Thank you and good trading,
Julian
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Get 30% discount on my video course!
Pre-registration phase for my video course starts now.
β More than 300 videos
β More than 25 hours
β Chartbook with more than 300 analyzed charts. Will be extended to 600 soon!
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My video course is almost complete! I produced more than 300 videos with more than 25 hours for you. In addition I included a chartbook with more than 300 analyzed charts, so that it's easy for you to learn the characteristics of chart patterns. I also included other download material about growth stock trading.
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MARKET CONDITIONS
Growth names seem to come back
Last week I drew in 3 scenarios in the NASDAQ composite chart. It was likely that we will see a pullback, but not how deep. Today we know that the NASDAQ undercut the EMA 21 and it looks like that we will pull back to the last highs from August. The S&P 500 is weaker currently and close to the EMA 65.
A lot of growth stocks in my portfolio and on my watchlist reached new highs last week. A clear sign for strength. In addition the $FFTY, $IWO and $ARKK held up much better than the NASDAQ or S&P 500. That could be a sign for rotation into high growth names for the last quarter.
Observe the stocks on your watchlist and in your portfolio closely. If the large-cap indices will show more weakness next week, they could start to correct too. The most stocks follow the general market. If the NASDAQ & S&P 500 will start to move up, we could see an explosion to the upside in high growth stocks.
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NASDAQ composite: As expected the NASDAQ pulled back from the upper trendline. The pullback last week is enough to give index room to the upside again. Watch the NASDAQ closely now. A pullback to the support level 14,900 is possible too. |
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IBD 50 Index: Growth stocks were strong last week. All important growth indices outperformed the NASDAQ last week and especially on Friday. The IBD 50 ($FFTY) is very close to a new all-time high. The top holdings at the moment: $TASK, $UPST, $ASAN, $INMD β¦ a lot of strong momentum names. |
3 LEADING STOCKS
This week I have 43 stocks on my watchlist, 1 more than last week. The most stocks are extended. Be careful with buying laggards.
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$NVDA: Although the stock is lagging a little bit behind in comparison to other growth stocks, it's the liquid, high institutional quality leader. There is no other leading stock at the moment with better characteristics as $NVDA when it comes to institutional quality (strong growth, high liquidity, huge potential, known name β¦).
$NVDA is the number one stock when it comes to AI / ML, metaverse, crypto currencies, gaming, autonomous driving β¦ Their products are support every big trend at the moment and their technology is going to replace classical CPU architectures in data centers.
The stock consolidated with the market in the last weeks. When the market will move up again, $NVDA should do that too.
Sales growth in the last 3 quarters: 61%, 84%, 61%. EPS growth in the last 3 quarters: 66%, 104%, 89%. EPS estimates for 2021 and 2022: 66% and 12%.
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$ZI: You know this stock already from one of the last issues of the newsletter. After the huge upmove after the secondary offering, the stock needed a pause and consolidated sideways. Now it seems that the demand is coming back and the stock tried to break out last week. The pullback in the general stock market held the stock back.
$ZI provides very unique software for sales departments, especially in the technology sector. What I like most about $ZI is that they expand their platform and integrate new tools and feature to grow their business.
Sales growth in the last 3 quarters: 53%, 50%, 57%. EPS growth in the last 3 quarters: 140%, 160%, 100%. EPS estimates for 2021 and 2022: 46% and 33%.
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$APPS: The stock was one of the big winning stocks of 2019 and 2020. In the last months the stock consolidated and outperformed the stock market. Now it seems that the picture will change: Huge demand came into the stock recently. That's a sign of strong buying activity.
I did not enough research about the stock, but it currently do not fulfill the most of my technical criteria (accumulation, relative strength). So it needs more time.
The company provides digital marketing services, especially in the apps marketing area which is a high potential business.
Sales growth in the last 3 quarters: 146%, 142%, 260%. EPS growth in the last 3 quarters: 320%, 400%, 162%. EPS estimates for 2021 and 2022: 118% and 43%.
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TRADING VIDEO
$ASAN β My big mistake with the stock
I did a big mistake with $ASAN in June this year and I want to share the results of my self-analysis with you. It's always helpful to look back and see what you can improve.
Link to the video: $ASAN β My big mistake with the stock
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