MARKET UPDATE #144
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 ,
as I wrote last week: The window of opportunity is there! And now it's closed again. Be quick and prepared or you missed the right time to buy stocks.
We saw a strong upmove in the NASDAQ last week. Also the other indices bounced back strongly from their lows. A clear sign how strong the market is. Patience is the key! Don't let the market shake you out of your best positions. Weakness doesn't last long in the current market. But I must admit that the market is still very volatile! I wrote about a change in the character of the market at the beginning of the year 2021: The stock market will not continue to run at the same pace as 2020.
Here is what you will find in this newsletter: - Questions and answers from the subscribers forum
- Comment on the current market situation: Markets stay volatile. Be patient!
- Stocks I am watching at the moment: $MARA, $CRWD, $IIPR
- Trading video: $CMG – Chipotle Mexican Grill. Stock analysis, technicals, fundamentals
If you have questions, please use the subscribers forum.
Thank you and good trading, Julian
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MARKET CONDITIONS
Markets stay volatile. Be patient!
The stock markets stays volatile. Volatile uptrend are very difficult to trade, especially if you experienced a period of a strong, smooth uptrend before. If the general stock market is volatile, the most stocks are volatile too. That means they show a lot of failed breakouts and bounce back and forth between support and resistance. But there are a lot of stocks which are still in an uptrend. A good entry and patience is the key to ride the trend. Don't let the market scare you out of your best positions. Have clear rules to ride the trends and exit the stocks when the trend ends, not when your emotions are getting out of control.
The main rule is still valid: As long as the general stock market is in an uptrend and there are high quality setups on your watchlist, have long exposure to the market. Often trends lasts longer as you expect and you will be surprised that stocks can also go up a lot in a volatile market environment. Patience is the key!
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NASDAQ composite: Strong bounce from the EMA 65 support! Every pullback is still bought by the market participants. A strong sign for a healthy bull market. Watch the resistance closely now. A breakout above the channel can lead to exhaustion and a failed breakout. I rather would like to see a consolidation around the resistance than a breakout. |
3 LEADING STOCKS
This week I have 38 stocks on my watchlist, 1 more as last week. The most stocks on my watchlist are extended or not ready to buy.
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$MARA: Crypto stocks are setting up again. Their business highly depends on the price of crypto currencies and it's too early to say that they have a lasting business concept. A few of them own cryptos or lend them to other companies and other crypto companies create a high computing hosting business. So all companies are looking for stable income streams!
But as long as Bitcoin and Ethereum are moving up and are in demand, crypto stocks can be an interesting opportunity to participate from the trend.
$MARA is one of the most profitable crypto stocks with very low mining costs and an interesting business concept: they do not own any facilities. Instead they own the miners. That leads to a high return on capital.
Sales growth in the last 3 quarters: 843%, >999%, 10,010%. EPS growth in the last 3 quarters: 825%, negative. Positive EPS estimated for 2021 and 321% for 2022.
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$CRWD: Cyber security stocks are very strong at the moment. There are a lot of other attractive stocks from the sector. $CRWD is one of the leader in the sector and last week the news was announced that the stock will be included in the NASDAQ 100 soon! That's a huge step for a company. A lot of funds have to own $CRWD now.
Cautious: The company will announce earnings next week!
Sales growth in the last 3 quarters: 86%, 74%, 70%. EPS growth in the last 3 quarters: 214%, 750%, 400%. EPS estimated for 2021 and 2022: 48% and 75%.
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$IIPR: This is a unique REIT with a special business model. It's specialized on the medical marijuana sector and rent greenhouses to marijuana producer. They are able to save a lot of money by renting greenhouses instead of owning them.
I like the price action of the stock very much: It shows a steady upward trend and a very smooth trend. But that also makes it difficult to enter, because there is no clear breakout or pivot point.
Sales growth in the last 3 quarters: 110%, 103%, 101%. EPS growth in the last 3 quarters: 9%, 31%, 38%. EPS estimated for 2021 and 2022: 37% and 39%.
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TRADING VIDEO
$CMG – Chipotle Mexican Grill. Stock analysis, technicals, fundamentals
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