MARKET UPDATE #143
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 ,
I wrote in my market analysis last week that the chance of another week of volatile sideways price movements is high. We have seen just that. However, I am surprised by the underlying strength of a lot of growth stocks. I did not get stopped out of any portfolio position! That's a clear sign that my trading niche is stronger than the general market.
I am convinced that we will see another strong upmove soon. Every pullback in the market is bought and there is still no alternative to stocks (because of the low interest rates). Be prepared!
Here is what you will find in this newsletter: - Questions and answers from the subscribers forum
- Comment on the current market situation: Window of opportunity is here!
- Stocks I am watching at the moment: $NVDA, $CMG, $ALGN
- Trading video: SEA Limited ($SE) – A potential new mega-cap stock. Stock analysis, technicals, fundamentals & story
If you have questions, please use the subscribers forum.
Thank you and good trading, Julian
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QUESTION AND ANSWERS
No new question or answer this week. You have to register for the forum! If you have an account, you have to login.
Do you have a question for me? Use the free forum. Links are below!
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MARKET CONDITIONS
Window of opportunity is here!
Almost all important indices showed a reversal on Thursday / Friday last week! The NASDAQ pulled back 3% from the all-time high. A very small pullback for the NASDAQ, but the growth indices pulled back 8% (Russell 2000 Growth) and 10% (ARK Innovation). This is the window of opportunity I waited for. Now it's time to be excited and observe your portfolio and potential new stocks. Leader should be able to move strongly if the market can follow through.
I don't expect a strong rally from the lows, but it could give the leading stocks the needed support to reach new all-time highs and move higher. For me it's time to "sit" with the most names and only manage risk.
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NASDAQ composite: We are still in an uptrend and the price has still some room to the upper resistance. Now it's a perfect window of opportunity! |
3 LEADING STOCKS
This week I have 39 stocks on my watchlist, 9 more as last week. I added some stocks to watch a broader range of growth stocks.
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$NVDA: This is the leading, liquid, glamour stock in the semiconductor sector. I personally think that the company is not a semiconductor company anymore. It's a data center and AI company. Semiconductors are only the needed tool to create the value with the software from $NVDIA.
The company presented outstanding numbers last week. Especially the graphic card business showed a strong development. The graphic cards are needed for AI, ML, data center operations and crypto mining.
Sales growth in the last 3 quarters: 61%, 84%, 68%. EPS growth in the last 3 quarters: 66%, 104%, 89%. EPS estimated for 2021 and 2022: 65% and 12%.
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$CMG: Here can you see an example of a stock which totally ignore the pullback or weakness in the markets. A clear sign of a leading stock!
$CMG is one of the leaders in the restaurant group. I personally like that they transformed their business model to a digital business. Almost 50% of their revenue is generated via digital services. That will lead to increasing margins in future and that means increasing profits!
Sales growth in the last 3 quarters: 12%, 23%, 39%. EPS growth in the last 3 quarters: 22%, 74%, 1,765%. EPS estimated for 2021 and 2022: 138% and 31%.
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$ALGN: Another stock resisting the pressure in the general stock market. After the breakout from the VCP, it is now the first consolidation and pullback.
The company provides teeth aligners and needed equipment for dentists. I personally see the company as a company in the beauty industry. People are paying a lot to look good and healthy. I think that $ALGN has a great product marketing and branding around their core product to increase the customer relationship. That's what makes them unique.
Sales growth in the last 3 quarters: 28%, 63%, 187%. EPS growth in the last 3 quarters: 48%, 241%, 969%. EPS estimated for 2021 and 2022: 109% and 22%.
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TRADING VIDEO
SEA Limited ($SE) – A potential new mega-cap stock. Stock analysis, technicals, fundamentals & story
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