MARKET UPDATE #167

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 ,

the markets stay volatile and this is clearly not the right situation to be aggressive! We saw huge up and down gaps in stocks after earnings this week. Money is flowing out of the winners of the COVID 19 lock-down and into cyclicals.

In the MARKET UPDATE Premium community I give daily updates about high potential stock setups. We were able to trade some winners in coal, shipping and oil! I see other sectors are setting up too.

If you focus only on growth stocks, you maybe will have a bad year. Nobody knows when the typical growth stocks will be in favor of the market again. I am able to trade all stocks, even though they do not meet the fundamentals I want to see. Why? Price action is always more important than fundamentals.

Here is what you will find in this newsletter:

Questions and answers from the subscribers forum
Comment on the current market situation: Volatility in the market will stay
Stocks I am watching at the moment: $MOS, $HES, $DWAC.
Trading tips: Watch the changes in the market.

If you have questions, please use the subscribers forum.

Thank you and good trading,
Julian

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I offer two additional services to the free newsletter. You can deepen your knowledge and learn how to trade growth and momentum stocks.

➡️ GROWTH TRADERS TOOLBOX: The ⭐️⭐️⭐️⭐️⭐️ video course with more than 300 videos and regularly updates! Perfect if you want to learn all the basics about growth and momentum stock trading.

➡️ MARKET UPDATE Premium: The membership community with access to my watchlist, live market and stocks commentary and weekly in-depth analysis video.

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QUESTION AND ANSWERS

1 question or answer this week. You have to register for the forum! If you have an account, you have to login.

1) Find the correct industries to focus on

Do you have a question for me? Use the free forum. Links are below!

Visit the forum

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MARKET CONDITIONS

Volatility in the market will stay

Is this the market to buy mid-term positions trades? I don‘t think so. The current market is very volatile and the conditions are not great for the most sectors. Exploding commodity prices, higher interest rates will have an effect on the earnings and sales of a lot of companies.

It‘s important to focus on the right sectors. There are enough sectors with great stocks which are moving up and where you are able to catch some winners: Oil, shipping, fertilizer, coal …

I think the next 2-3 weeks will tell us how strong the market really is. The bounce off the lows was weak and the earnings season lead to high volatility in the indices. We have to watch the market and indices carefully and wait until we see a clear turnaround before we can become more aggressive.

In the MARKET UPDATE Premium community I give mid-week and weekend updates and analyze the situation in videos. That‘s helpful to learn how to interpret the current market situation.

🚨 You can learn a lot about identifying the right market situation and all the market indicators I use in my GROWH TRADERS TOOLBOX course.

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NASDAQ Composite: Technology stocks are underperforming and they maybe will underperform for months. We could easily see another rally to the EMA 200 and overshoot it for some days, but I expect a very high volatility. Be prepared for every scenario.

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3 LEADING STOCKS

This week I have 27 stocks on my watchlist, 5 (!) more as last week. I see some new, interesting sectors joining.

🚨 Get access to the full watchlist & an in-depth 1h analysis video of all stock every week. Join MARKET UPDATE Premium now.

$MOS: Fertilizer stocks are very stock. They look great at the moment. It‘s not 100% clear which stock is the leader, but $MOS consolidates in a nice cup and handle pattern.

Agricultural prices are rising and that will lead to higher production. You need fertilizer to grow all the plants.

Sales growth in the last 3 quarters: 28%, 37%, 44%. EPS growth in the last 3 quarters: >999%, 964%, 487%. EPS estimated for 2022 and 2023: 494% and 53%.

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$HES: After oil and gas explorer had some strong upmoves, I see buying activities in oil services stocks and other industries. It‘s simple: If the demand for oil is high and the prices are rising, oil companies will try to expand their capacities to sell more. To do that they need pipes, construction material and other services.

Sales growth in the last 3 quarters: 90%, 54%, 59%. EPS growth in the last 3 quarters: 123%, 139%, 247%. EPS estimated for 2022 and 2023: 126% and 20%

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$DWAC: This is the SPAC of the new social network from Donals Trump. It‘s a very highly speculative stock and you must be very careful with it. I am surprised how strong the stock is in comparison to other growth and risky stocks. It seems that nobody wants to sell it.

No sales, no EPS, no estimates.

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🚨 Get access to the full watchlist & an in-depth 1h analysis video of all stock every week. Join MARKET UPDATE Premium now.

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TRADING TIPS

Watch the changes in the market

Paul Tudor Jones said that the world is nothing else than a flow chart for capital. My interpretation: Capital is flowing from one asset to another and I have to find out where the capital is flowing.

Only because the NASDAQ is in a correction does not mean that you can‘t make money. Maybe you can‘t make money with technology stocks because the money is flowing out of technology stocks, but you maybe can make money with oil stocks.

I observe a lot of different markets: Commodities, bonds, currencies, indices, stock sectors … I get some clues for all these different sources where money is flowing. If coal is rising in price or turn around, it make sense to look at coal stocks. If I see that banks are holding up nicely, I look into the sector to find some bank stocks.

Sounds like a lot of work? No. If you have experience and routines it is a quick process. I only go through my watchlists and observe what‘s happening in these different markets. Then I start research work in the markets I am interested in.

When you look at all these different markets, you see where money is flowing and can take advantage. That does not mean that you have to trade all these markets, but you get some inspiration for ideas.

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