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Blog Trading Guides

Coverdell Or 529 | Which College Savings Plan Is Right For You?

The best place to start when thinking about saving for college is to open a college savings plan. College savings plans, also known as education savings plans, are tax-advantaged investment vehicles similar to Roth IRAs.

There are two primary types of college savings plans: the Coverdell Education Savings Account and the 529 College Savings Plan. But which is best for you? Let’s jump into it!

The 529 College Savings Plan

When it comes to saving for college, investing in a 529 plan is one of the best ways to ensure that you are able to afford the education that your children will need to succeed in life.

An education savings plan is a type of 529 plan that can be used for any educational expense, whether it’s college tuition, a university textbook, or certain extracurricular activities.

The other type of 529 plan is a prepaid tuition plan, which is an account invested in the state’s tuition program. The money in these accounts is used to purchase tuition units, which can then be used to pay for college tuition.

The 529 College Savings Plan is the most popular type of 529 plan because it is tax-advantaged and can be used for any educational expense.

There are two ways to contribute to a 529 plan: You can either make a contribution to the plan through your own money or you can make a contribution to a 529 plan through your employer. Contributions to a 529 plan are not tax-deductible.

529 College Savings Plan Pros:

– Contributions to the plan can be used by the student or child at any time throughout his/her life.

– There are no income restrictions.

529 College Savings Plan Cons:

– Non-educational expenses are still taxed.

– Contributions can only be used for qualified educational expenses.

The Coverdell Education Savings Account –

The Coverdell education savings account is the second most popular type of plan. Like the 529 College Savings Plan above, the Coverdell Education Savings Account can be used for any educational expense.

The biggest difference between the Coverdell Education Savings Account and the 529 College Savings Plan is that the Coverdell Education Savings Account is only available to parents who have children.

When opening a Coverdell Education Savings Account, the money is placed in a separate bank account that can be used for any educational expense.

The Coverdell Education Savings Account contributions can only be made by the parent or guardian, not by an employer, and contributions can only be made with after-tax money. These contributions are not tax-deductible unless used for qualified educational expenses.

Coverdell Education Savings Pros:

– Offers tax-free withdrawals when the funds are spent on qualified education expenses.

– Can be used for all education levels (primary, secondary, post-secondary.)

Cons:

– Income restrictions mean the ability to contribute to a Coverdell account is limited by the modified adjusted gross income set for a given tax year.

– Contributions are limited to just $2,000 per child each year.

– Contributions must be used by the time the student has turned 30 years old, in order to avoid penalties and taxes when withdrawing money.

So, should you choose Coverdell Education Savings or a 529 Savings Plan?

It’s important to think about your financial situation, your outlook on investing, and what will be best for you.

If you have a lot of money available to invest, then the 529 College Savings Plan is likely the best option for you. If you know that you have a lot of expenses coming up, then the Coverdell Education Savings Account is the best option for you.

The important thing is to start investing today to ensure that you will have enough money to pay for your children’s education in the future.

As always, do your own research and make the best decision for you and your projected outlook on your life and your children’s life!

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Blog Stocks Watchlist

Weekly Watchlist | Market Volatility, Earnings, and More

Once again the market had some crazy volatility on economic news last week, which is a little less of a factor this week. 

With such a light economic calendar, the highlight of the week is going to be earnings season for Q2. 

There is quite a hefty list of companies reporting this week as well, including but not limited to tech stocks, bank stocks, communication stocks, and high growth stocks such as Tesla. 

With the July meeting coming up at the end of the month, expect the market to digest earnings before making a bigger move later on this month. 

All in all, the bears did fail to break the market lower last week, and there is a potential for a possible bounce back this week going into the FED meeting.

Get our full watchlist in PDF format here.

Top Economic Announcements This Week

Housing Market Index Reported Monday @10 AM EST

Housing Starts & Permits Reported Tuesday @8:30 AM EST 

Existing Home Sales Reported Wednesday @10 AM EST

Jobless Claims Reported Thursday @8:30 AM EST

Philadelphia FED Manufacturing Index Reported Thursday @8:30 AM EST 

PMI Composite Flash Reported Friday @9:45 AM EST

Broad Market Analysis

SPX500USD: SP500

The SP500 actually managed to hold support at 3750-3780 pretty nicely last week, with what looks like a pretty solid higher low being put in here from the bulls. 

If the SP500 can break over 3920 this week, then the next target would be the sell side golden pocket and major psychological resistance of 4000. Anything over 4000 opens up the potential for a re-test of 4100/4200/4300 as well. 4300 is still the last lower high as we all know. 

With all of this being said though, if the bulls cannot hold 3750-3780 on the daily time frame, then look out below for the SP500. Any move below 3700 will confirm the downtrend with targets of 3670/3600/3500/3400. 

In my opinion, I think the most likely scenario here is a run up into the FED meeting at the end of the month. This is mainly due to how many higher lows have been put in on the micro trend and the fact that a re-test of 4000 would be picture perfect. 

$US30: Dow Jones Industrial Average

The Dow also managed to make another higher low after rocketing off of 30600-30750 support. If the Dow can manage to break over 31400, then the Dow will move up into the sell side golden pocket and major resistance of 32000.

 Anything over the sell side golden pocket and resistance at 32000-32250 will lead to a re-test of the previous lower high at 32750/33000/33250/and potentially 33500.

If the Dow cannot hold 30600 on the daily time frame, then look out below on the Dow. The downtrend will officially be confirmed on a breakdown below 30000-30200, this trigger will lead to targets of 29500/29000/28500/28000 and potentially lower.

Like I said on the SP500, I think the micro trend is 100% favoring the bulls here, and there is a high likelihood that we see 32000-32250 being tested this week or next week on the Dow.

US100: Nasdaq 100

The Nasdaq is starting to form a nice little micro uptrend here, which is looking a lot like an ascending triangle as well. 

As long as the Nasdaq can maintain the higher low pattern and break over 12200-12400 this week, there is a high chance that the Nasdaq will re-test resistances at 12500/12750/13000. 13000 is the last lower high as well all know as well, so this level is key to the longer term downtrend on the chart. 

Like I have said on all the other indexes, there looks to be some solid bullish price action right now with higher low after higher low being put in. With that being said though, the bulls have to execute and break over key resistances to maintain a potential short term bottom. 

If the Nasdaq cannot break over 12200-12400 and ends up breaking the last higher low at 11500-11550, then lookout below on the Nasdaq. Anything below 11500 will lead to 11250/11000 re-tests.

Below these levels will confirm another major leg down to targets of 10500/10250/10000 and potentially lower

With the bears failing to go lower for a couple months now, this is looking like a potential short term bottom before the FED meeting at the end of the month.

Obviously time will tell, but the bulls 100% look in control here for the first time in a while.

$US2000: Russell 2000

The Russell continues to hold major long term support at 1700, which is a key level we have continued to harp on week after week. 

As long as the Russell can hold 1700, then there is a high chance that we could see a major potential bounce from this level on the macro backtest. 

Anything over 1800 on the Russell would lead to a re-test of major resistances at 1850/1900. 1900 is the last lower high as well, so this level is key for the Russell going foreward as well. 

If 1900 is broken, then the Russell will break the daily downtrend, but it ill still have to contend with major resistances above and the weekly downtrend. These resistances to watch for are 2000/2100/2150.

On the contrary, if the Russell cannot hold 1700 in the weeks to come, then targets below are 1600/1500/14000 to test major levels highlighted on the chart.

$VIX: Volatility Index

The VIX continues to look really ugly on a day by day basis, with last week it closing literally to the tick on the previous higher low at $24-$25.

If the VIX breaks below $24-$25 support this week, then the VIX will 100% re-test $20 support. Anything below $20 will lead to targets of $18/$16/$14/$12.

If the VIX breaks below $24-$25 this week, this should give the broad markets the strength they need to break the short term downtrend.

Anything below $20 on the VIX should lead to a break of the daily downtrend and a potential re-test of the weekly downtrend in the future.

In my opinion, the VIX is definitely looking like it’s setting itself up to pullback, but it could easily hold $20 support and rocket it off of it like it has in the past. Until $20 is broken, remain cautious on the broad market.

$XAUUSD: Spot Gold

Gold continues to move lower week after week, with just absolutely gross price action. This is exactly why we waited for the breakdown at 1800, we knew a break of this level would lead to stops being hit and algos taking over. 

Now Gold is barely holding onto 1700 support, which is a key level if you go back in time to 2020-2021. In my opinion, I think there is going to be one last leg down here in the short term to the -0.618 at 1650-1660. 

Gold loves to move down to the golden ratio and it tends to be so technical you can’t even make it up. Looking back as well, you can see that 1650-1660 is a major level that goes back from the Covid Crash in 2020. 

We would expect a bounce at this level without a doubt. From there we can talk about bullish targets above. 

If the bulls do make a bounce in the short term here, look out for resistance at 1740-1750 if you do take calls off 1700.

Over 1750 opens the doors to a re-test of 1800, which will act as major resistance as well.

Anything over 1800 and the bulls obviously have a chance of turning this around, but I highly doubt that will come anytime soon with this price action.

Technical Analysis

$AMZN: Amazon

Certainly doesn’t look like we’ll get that clean double top now that we’ve broken topside out of the most recent pattern. 

Very glad that we noticed how similar that was to apples breakout last week and got that information out in time through the TA feature, but still would have loved for this to be headed towards $102.5 for our neckline break.

Regardless, the hourly chart now has three higher highs in place with resistance at $115.4 and $116.35. Above these two levels and we should be testing $121 and $123.2 by the end of the week.

Now if we fail to go higher, I really don’t see a short trigger that I like near here for a macro short trigger. The best trigger for shorts is down near $108 and our targets below that are $106.2 and $103.7.

$AAPL: Apple

Pretty exciting close for Apple on Friday, we appear to be breaking topside out of this megaphone pattern that we sent out. 

If you missed the post, the megaphone is known for volatility and can be seen clearly on the 1h and 30m charts right now.

Since we’re breaking higher and above a key hourly level of $149.5, I fully expect us to continue trading higher until our $115.54 target is met.

We’ll likely face intraday resistance on the way up near $152.5 and $154, but ultimately that is our final target.

For the downside, you either have to speculate short up here with a lot of time on the contracts and a tight stop, or sit on your hands until we’re peaking below $141.5.

This just looks too bullish right now to take any macro shorts. Under $141.5 and we’ll be expecting $138.4 and $136. 

$TSLA: Tesla

As you may know, TSLQ has been added to exchanges. This is a brand new ETF that experiences leveraged gains while TSLA falls. Some say that this new addition has ironically “got to be the bottom” for Tesla.

Either way, the stock looks great for moves in either direction right now.

Really love it this week over $725 for a BIG move towards $760. We’re definitely going to experience some fight on the way to that target, but that will be my ultimate expectation for if Tesla can get above $725 this week.

If it fails to go higher over that, we can short below $716.7, but we must be cautious here as the level is fairly new and not as strong as I would like it to be. Look for a 1h close below it, not just 5m chop near it. 

Targets below that are $700, $696.64, and $686.33.

$GS: Goldman Sachs

I’ve started to add shares of GS down here before they announce their earnings tomorrow morning, and I’m planning to cut them below $280. Didn’t want to alert this until after ER so nobody gets wrecked on ER volatility.

Love the macro falling wedge and the opportunity over $303 this week.

Could definitely be a popular name this week for scalps and day trades if we do get this trigger. But, I’m not really interested in the minute to minute side of things with this play.

Just love the low risk shares investment with a near $13 stop loss for now. Definitely a long term investment not a trade. 

$CRWD: Crowdstrike Holdings

Still very interested in this weekly bull flag on CRWD. 

We played with the idea of a breakdown last week, but bulls were able to defend and bring the stock back inside of our pattern.

Can’t help but feel as though the failure to break above the weekly bullish candle is a sign of weakness as well moving forward. However the bulls stepping in still gives us no clear direction. 

I think the best play is speculating short while we’re still within the pattern, but that wouldn’t be a trade for smaller accounts.

 It would require some serious time on the contracts to capture the whole move down on this bear flag so it would be a premium rich position with a very wide stop.

Going to continue to update this.

$IBM: International Business Machines

Earnings on Monday after close!

Not much to update here, this monthly candle could be closing as a hammer before the breakout. 

Price action has been very boring, our swing trade (with shares) is basically flat at the moment. Still have high hopes for this breakout in the long run, but it is a very long time frame and only to be treated as an investment.

If this is your first time seeing IBM on here, we’ve probably posted it too many times to count. Love it for a long term investment so long as it remains above trendline resistance.

$DOCU: Docusign

This one was a huge surprise, we rallied very hard over the bear flag. Lucky, we never got our bearish trigger, but still we didn’t expect this.

Due to the breakout, and the hourly levels forming, I really like DOCU for bullish continuation into $66.5 this week. We need to get hourly closes over $63.6 in order to actually gain that extra $3 out of the stock, but that looks ideal.

Otherwise, we’ll fail to go higher near $63.5 and our first bearish trigger will be $61.2 with a $59.12 target and even more room for downside below that.

Economic Calendar

PB Alerts Event Calendar

Categories
Crypto Trading Guides

Ultimate Guide To Crypto Rugpulls

So, you are thinking about getting into the crypto space. You’re seeing crypto commercials everywhere, celebrities are releasing NFT projects and you’re looking to get a piece of the pie. You’re tired of being left on the sideline with the purchasing power of the dollar diminishing.

However, that one time your friend got rug pulled leaves a sour taste in your mouth. He has told you that the entire space is a scam and you don’t know what to think now. Or, maybe you have been in the crypto space for a while and have experienced a rug pull firsthand. You are now worried that it will happen again.

Let’s set these worries aside for a second and look at it from a bird’s eye view. The crypto space is complex with many moving parts. Like any industry, there are those in this space looking to do good and those looking to do bad.

The goal of this article is to help you make educated decisions when investing in the crypto markets. Although scammers do exist, there are numerous ways to protect yourself as a crypto investor and we outline them below. 

But first, what exactly is a rug pull anyway?

A rug pull is a type of cryptocurrency scam where developers raise funding from investors through false promises and then flee from the project taking all the cash for themselves.

Investors of the project are left with broken dreams and often have a lot of self-reflecting to do. Many investors in the cryptocurrency space have financial freedom on their mind and this can greatly affect decision making.

Decentralized finance (DeFi) has become popular amongst those looking to go from living in a one-bedroom apartment cooking ramen noodles for dinner to getting guacamole in their burrito bowl without batting an eye at the upcharge. Needless to say, there are many projects in the DeFi space offering the world to investors. If it sounds too good to be true, it most likely is. 

DeFi operates without regulation and is entirely run by users thanks to blockchain technology. As a result, projects can be created by anyone and be listed on decentralized exchanges (DEXes). DEXes provide the most amount of freedom. Developers can promise anything and if investors think they see value, they are able to invest. It is important to note that these DEX’s do not require any prior verification or certification from projects before listing tokens on their network.

So, if someone wants to create a project to scam investors, they are able to do so with ease. Amongst the most popular DEX’s are Uniswap and Sushiswap. On the other hand, there are centralized exchanges (CEXes) that offer less freedom for developers and do require projects to be audited before their tokens are listed.

The Growing Crime Rate In DeFi

Elliptic has been an industry leader in crypto asset security since 2013. Their 2021 annual report showed a 1700% increase in DeFi services over the past year.

The total capital locked in DeFi surpassed $247 billion in 2021 alone. This exponential growth brought with it an increase in Decrime, a term Elliptic uses to describe fraudulent acts carried out using DeFi tools. Since 2020, losses due to theft on DeFi platforms surged 600% totalling over $10.5 billion in 2021 alone.

That number is up from $1.5 billion in 2020. It is clear that DeFi is becoming extremely popular for those who do not want to deal with banking institutions, however, this technology is still in its infancy stages making it a stomping ground for criminals to exploit. 

How are these rug pulls happening?

As mentioned previously, there are many people in this crypto space looking to make money quickly. Instead of doing the proper research on a project’s team, tokenomics, long term vision and asking speculative questions.

Many investors are experiencing FOMO (fear of missing out) and throwing themselves into projects in hopes of making quick gains. Oftentimes, rug pull projects create a tremendous amount of hype through social media.

They pay big influencers to promote the project to their large followings. This creates excitement for the token and is perfect bait for those new investors looking to make life changing gains over night. The value of the tokens surge in price and once satisfied, developers will “pull the rug” on investors running away with all the funds.

But, how do they do it? These malicious developers often write secret code into the smart contracts that allow access to staked or locked tokens.

Those who don’t get out early are left holding worthless tokens. This is becoming far too common in the space and investors need to take precaution! 

A typical rug pull may play out like this. A developer creates a useless token called MOON by copying the code from another token and then changing a few lines to make it distinct.

The token will then be added to a DEX such as Uniswap. Let the marketing campaign begin. Misinformation about the project will be promoted on the various social medias such as Discord, Twitter and Telegram.

The project will begin promising unrealistic returns for investors causing FOMO and demand to skyrocket. The price of the token will rise sharply with investors adding tokens of real value to the liquidity pool.

At any moment the developers can run away with the valuable tokens. They often wait until the project has reached peak hype and then execute the rug pull on unsuspecting investors.

Examples of infamous rug pulls

Squid Game is one of the biggest rug pulls in history and played off the hype of the hit Netflix series. Everyone was talking about the show at the time which sparked an unknown developer to drop Squid token.

On October 26, 2021, the token was placed on PancakeSwap for a penny. At its peak, the token reached $2,861 according to the crypto pricing website CoinMarketCap. The project then disappeared. The website was destroyed, and the project promoters were nowhere to be found.

A total of 43,000 investors were unable to sell their tokens due to an anti-dumping mechanism created by the developers. As a result, helpless investors watched their investment plunge from being worth thousands of dollars to less than a cent in a matter of minutes. This will be a learning experience for many as the lost funds will not be recovered. 

SaveTheKids is another classic rug pull that involved Faze Clan, one of the most notorious influencer groups on the internet.

These influencers have massive power in this NFT space because they can reach a large audience at the touch of a button. As a result, they become an excellent target for malicious developers looking to create hype for their scam tokens. SaveTheKids was a project being promoted to help raise money for kids’ charities.

In June 2021, multiple Faze Clan members began posting on their social media accounts hyping up the project. Due to the Faze Clan members’ involvement, investors had strong belief in the token.

Well, were they ever wrong. After the initial pump, Faze Clan members are suspected to have dumped all their tokens. The project is now worthless, and investors got wrecked. Faze Clan responded by kicking out Faze Kay, one of their most popular members.

The group denied any involvement in their team members actions. This goes to show that you cannot put all your trust in these big-name influencers!

They are willing to scam their own fans. Look for influencers that have notoriety in the crypto space and have had previous success with past projects when investing.

So, how do we spot and avoid these rug pulls?

It is relatively easy to avoid these rug pulls when you do proper research on a project before investing. Below are some red flags to watch out for. 

Anonymous Teams

This one is relatively straight forward and is the easiest way to spot a potential rug pull. If you are unable to find real names of the people developing the project, avoid it at all costs. Legitimate projects looking to solve real problems in the crypto space will have nothing to hide. 

Crazy Overnight Hype

If you have never heard of the project before and all of the sudden it is receiving a crazy amount of hype overnight, avoid it. These rug pull projects often use meme marketing and cultural trends in order to reach a mass audience quickly. 

Promising the world

If it sounds too good to be true, avoid it at all costs. In order to bait investors, these projects will try to create promises that are difficult to resist. Stay away from projects that are offering guaranteed profit or an absurd amount of return for staking. 

Bad tokenomics

Before investing in a project, always check the token allocation! If only a few wallets hold the majority of the token supply, be extremely speculative. Those few wallets are able to manipulate the price of the token and possibly dump tokens on other investors. You can check token allocation on websites like Etherscan. 

Sketchy roadmap

A roadmap is designed to show investors that a project is serious in intent and has a strategic plan in place for future growth. The roadmap should show the achievements to date of the project and specific development goals for the future.  If the roadmap is vague with unrealistic goals, avoid it. Also, it is an immediate red flag if the project does not have a road map. 

Not listed on a CEX

Rug pull projects do not want to go out of their way to get it listed on a CEX. The process to get listed on a CEX is time consuming and capital inducing. As a result, scammers generally only list their tokens on DEXes.

Remember To Always Do Your Own Research

Now that you understand what a rug pull is, have seen some examples and know how to spot them, the onus is on you. Before investing in any coin, make sure you are doing your own research!

Categories
Stocks Watchlist

DOW & S&P Trending Downwards, FED Addressing Inflation, and More

The market is starting to heat up this week with numerous economic events and the start of 2nd quarter earnings season. There is no doubt that the market will move this week with CPI data being released this Wednesday, with many economists believing that it will come in higher than 8.6%. If inflation is above expectations and remains hot, the FED will remain in their hawkish stance, which is bad for asset prices as everyone knows. 

Who knows if this has been priced into the market already, but investors should remain cautious this week and for the remainder of the year as the market is still in a nasty bear market. Additionally, earnings season kicks off this week with JP Morgan Chase & Morgan Stanley reporting on Thursday, and Wells Fargo, Citigroup, and PNC Financial reporting on Friday. All in all, get ready for an extremely volatile week ahead.

Top Economic Announcements This Week

  • FED John Williams Speaks Monday @2:00 PM EST
  • NFIB Small Business Optimism Index Released Tuesday @6:00 AM EST
  • FED Thomas Barkin Speaks Tuesday @12:30 PM EST
  • CPI Released Wednesday @8:30 AM EST
  • Atlanta FED Business Inflation Expectations Wednesday @10 AM EST
  • Jobless Claims Reported Thursday @8:30 AM EST
  • PPI-Final Demand Reported Thursday @8:30 AM EST
  • Retail Sales Reported Friday @8:30 AM EST
  • Empire State Manufacturing Index Released Friday @8:30 AM EST
  • FED Raphael Bostic Speaks Friday @8:45 AM EST
  • Industrial Production Reported Friday @9:15 AM EST

Volatility is going to continue to dominate the markets with fundamental factors such as the ongoing Coronavirus situation, inflation headwinds, and instability around the globe. Future downside risks are 100% a possibility at this point, using the proper risk management techniques could easily help to offset any losses.

Broad Market Analysis

SPX500USD: SP500

The SP500 isn’t doing anything really spectacular here whatsoever. Yes the market made a higher low, but the SP500 has yet to break over major resistance at 3900-3910 which is a key level going for this week. Over 3900-3910 and the SP500 will move up to the sell side golden pocket between 3980-4030 which will obviously be a pivotal level of resistance with 4000 being extremely psychological.  At the end of the day, the market is still in a bear trend with the last lower high at a major inflection point at 4200-4300.

 To me this move looks like a classic ABC, which usually ends up playing out as a bearish continuation pattern. With all of this being said though, there is a chance that the SP500 makes a move towards 4000 going into inflation data on Wednesday. Targets above 4000 are 4100/4200/4300 for major re-tests of prior resistances and critical levels for the bearish/bullish trend. 

For the bears this week, look for a double top at 3900 or a fake-out above 3900 up to 4000 before entering. Any move below 3780-3800 will most likely lead to lower prices below, with fib levels at 3500/3400/3300. 

$US30: Dow Jones Industrial Average

The Dow is looking even more disgusting than the SP500, with this move up barely even testing the previous high. It’s interesting to note that the last pivot was at the sell-side golden pocket, which could be a major sign of weakness.

If the Dow can not break over 31500 in the future, look for a double top like move and a major move down. A break below 30700 will confirm a major move down, with the ultimate bearish trigger being a break below 30000.

Targets below on the fibs are 29000/28500/28000/27500. On the contrary, if the Dow can show some strength this week and break above 31500, look for a move up to resistances above at 31750/32000/32250.

Over 32250 will break the micro sell side golden pocket, and allow for the Dow to move up to resistances above and ultimately re-test the previous lower high at 33500. Investors should remain cautious this week on the Dow, especially with inflation data expected to be hot this Wednesday.

US100: Nasdaq 100

The Nasdaq is going to be the ultimate trigger this week for where the market will go. The Nasdaq is sitting inside of the micro golden pocket right now between 12200-12400, which is a major inflection point for the market as usual. 

If the Nasdaq can manage to breakout above the sell side golden pocket, then the next target would be 13000 resistance, which we all know is a major inflection point. You can see that the last pivot ran into this level and got denied extremely hard.

13000 also happens to be the previous macro lower high, so this level is key to the trend going forward. Anything over 13000 and there is room above for the bulls to potentially reverse the trend in the long term.

Like I said on the Dow and the SP500, this move looks like a textbook ABC and ultimately the market remains in a downtrend, so be very careful going forward. Any move below the last higher low at 11400-11500 will lead to lower targets of 11000/10500/10250/10000.

$US2000: Russell 2000

The Russell once again is the savior of the charts, with it STILL managing to hold above 1700 key support. If the Russell can continue to hold 1700 in the long term here, there is potential that this could be a major potential bottom on small caps/growth stocks.

Obviously, anything below 1700 and the Russell will move down to targets of 1600/1500/1400. You can see all of these levels on the chart above, which are extremely key levels of support.

If the Russell can continue to hold 1700, immediate targets above are 1800/1850/1900/1950/2000. This would give the bulls the strength they need in other sectors of the market as well to potentially continue the uptrend.

$VIX: Volatility Index

VIX is continuing to move lower after failing to break over $30 resistance, which is the key level to this chart for the VIX bulls. With this being said, the VIX remains in an uptrend with the higher low at $24-$25. The VIX is also sitting at this level right now, so if it can hold, there is potential for a move up on the VIX this week. 

If the higher low at $24-$25 breaks, then VIX will break the short term uptrend here, and go down to re-test major support at $20. This level is extremely key to the long term uptrend of VIX, so if $20 is re-tested we would expect a bounce from this level. 

If the VIX can hold $25 this week, then the VIX will move up to $30. $30 is the key level as I have mentioned before, but if it breaks over this level than it will be bad for the broad markets. 5. Anything over $35-$40 and the VIX will obviously move higher to blue sky territory, with some resistances above at $45/$50/$55/$60.

$XAUUSD: Spot Gold

Gold is moving just so textbook right now, with it breaking below 1800 last week and getting absolutely obliterated. 

Gold tends to make these extremely explosive moves, which are extremely lucrative when they happen. The break on 1800 was absolutely textbook, and the short term uptrend has now been broken. Gold is currently bouncing off the first fib target right now at 1740-1750. If this level can’t hold, targets below are 1700/1650-1660/1600.

Obviously now that Gold has broken 1800, there is no bullish thesis until 1800 has been re-taken. Over 1800 and Gold will return to resistances above at 1850/1880-1900. Look out below on Gold, this is looking like a potential double top on the macro time frame as well. 

Technical Analysis

$DDOG: Data Dog

DDOG is back on this weeks WL after playing out pretty well last week. We mentioned that we were expecting a DDOG move back up to the $110.50 area, which we got, but also mentioned that we needed over that level for the macro level breakout. Obviously we did not get that breakout, but DDOG is now setting up a very clean 1 2 3 weekly pattern. 

This pattern is highlighted by a big green bar (1), followed by a red inside bar (2), and then finally a continuation bar that breaks the high of the previous bar (3). This week if DDOG can continue higher & get over $110.97, look for the breakout to continue. We could see a nice move play out if the market follows suit. We have plenty of targets above. 

If DDOG cannot break over our main level, then look for further consolidation/pullback. The market is at big resistance and so is DDOG so we expect to see some bears up here trying to drive price down. Look for support at $105.33/$99.33/95.06/$92.20.

$FDX: FedEx

FDX is looking beautiful after holding this macro .382 fib level, breaking out of this falling wedge, and now backtesting the breakout. 

The weekly chart here also has a nice potential 1 2 3 pattern playing out to the downside. We personally can see FDX going either way in the weeks to come so lets go over the potential scenarios. Bullish Case: If FDX can break over $234.80, we think FDX can make the move back up to retest the recent swing high near $247.22 and to potentially make a new higher high up to the $260’s. 

Bearish Case: If this 1-2-3 pattern plays out to the downside. FDX would need to break below last week’s low. If that can happen, FDX could make a move back down to the $205’s & $200’s in the coming weeks.

$BA: Boeing

BA has been doing nothing for the past 3 weeks. BA made its massive move before this recent market rally and now its just consolidating while the market catches up. Its gearing up for a massive move in either direction so let us highlight the scenarios. Bullish Case: If BA can get over $144.27, we think BA can make a fast and strong move up to the low and high $150’s. The daily chart is for sure flagging right under massive resistance which is usually bullish. As long as the market can hold up, BA should be a top long watch. 

Bearish Case: BA has been rejecting this massive resistance zone for 3 weeks now. The fact that BA could not make the bullish breakout move while the market was strong is kind of concerning. If the market does pull back this week, we think BA could actually be the leader on the way down. The weekly chart is also in a heavy downtrend as well. Below $130.61 BA would look very good for a move lower…possibly to fill that gap down to $122 area. 

$AAPL: Apple

We’ll continue to say that Apple will lead the SPY. 2. We saw impressive volatility out of the megaphone pattern that we mentioned last week, now we just need to see if this bullish breakout has the strength to make a new hourly higher high. 

Ideally we need to see Apple above $150 to say that the trend has flipped bullish for a second time since this breakout. Above $150 and we’ll find a little bit of resistance at $152, but our key level is closer to $155.5 and then $159.17. 

If we start to break down from this trendline support then we’ll be watching $145.12 for our trigger for puts. Below that and we’re targeting $141.5 and $138.4. Not the time to be taking random stabs until we get one of these triggers.

$AMD: Advanced Micro Devices

AMD could be a top watch this week. We saw some impressive continuation out of this falling wedge, but we’re currently retesting $80.35 which was the double bottom low before the massive drop to $71.6. At the moment it is a pure 50/50 toss up for if we break this level or fail to go higher.

However, this is the best possible entry for shorts if we were to fail to go higher, and it would be the start of a massive move up to $85.92 if we were to get above $80.35. I think the best way to play this is speculative shorts until we get a 1h close above $80.35, at which point we can cut for a loss and switch to calls if we see some selling pressure and an hourly bullish hold of $80.35.

$AMZN: Amazon

Just like MSFT and AAPL, we got a perfect move out of the bullish reversal pattern on Amazon. We just need to see if we can get a bullish reclaim of $117.1 or if we’re going to fail to go higher this week. Personally, leaning more towards shorts due to how clean this double top would be if we failed here, especially since our neckline is down near $103 which would be a $14 move down from that $117 level and a huge R/R for the now very cheap AMZN contracts. 

However, that’s pure speculation. We need to look for some lower lows or failure to go higher triggers on the 1h chart before taking that short with any confirmation.

$MSFT: Microsoft

Not entirely sure what’s going to happen here, MSFT had a very healthy pullback and held the $263.65 level perfectly. It even made a tiny higher high on the hourly. So long as we’re trading above $263.65 we can remain short term bullish, especially if we get the bullish trigger for $268.8 which would take us to $272.25 / $273.2 for a nice little profit. 

As far as downside, we will certainly go lower below $263.65, it’s just a matter of how low. We could easily bounce off $261.55 which is stronger support, if that happens it’s just going to be a chop fest that nobody wants to trade. If we do see bearish continuation, we’ll trigger at $263.65, then target $261.55, $258.75, and $254.

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What To Watch This Week | Economic Events, Stocks, & More

After quite an insane lineup of economic events last week, this week is a little lighter in terms of the economic calendar and earnings as well. Some highlights to watch out for this week are the Challenger Job-Cut Report, FOMC Minutes, and the June Job Report. Each of these events will likely cause market movement and investor expectations to shift, especially the FED minutes with a renewed dot plot and FED expectations. With inflation continuing to surge, there should be some very interesting and key points made in this weeks FOMC Minutes so keep a close eye on Wednesday. The June Job Report is also going to be critical to this week, economists are expecting 250,000 jobs added with unemployment staying stagnant at 3.6%. All in all, we would predict a slower week than usual, but volatility should remain high on Wednesday and Friday.

Top Economic Announcements This Week

  • Investor Movement Index Reported Tuesday @12:30 PM EST
  • FED John Williams Speaks Wednesday @9 AM EST
  • PMI Composite Final Reported Wednesday @9:45 AM EST
  • ISM Services Index Reported Wednesday @10 AM EST
  • JOLTS Job Report Released Wednesday @10 AM EST
  • FOMC Minutes Released Wednesday @2 PM EST
  • Challenger Job-Cut Report Released Thursday @7:30 AM EST
  • ADT Employment Report Released Thursday @8:15 AM EST
  • International Trade in Goods & Services Thursday @8:30 AM EST
  • Jobless Claims Reported Thursday @8:30 AM EST
  • FED James Bullard Speaks Thursday @1 PM EST
  • June Job Report Released Friday @8:30 AM EST
  • FED John Williams Speaks Friday @11 AM EST

Volatility is going to continue to dominate the markets with fundamental factors such as the ongoing Coronavirus Situation, Inflation headwinds, and instability around the globe. Future downside risks are 100% a possibility at this point, using the proper risk management techniques could easily help to offset any losses.

Broad Market Analysis

SPX500USD: SP500

The SP500 is holding onto 3700 support at the moment, with a potential higher low being put in last Friday. If the bulls can hold this higher low at 3700 and move higher to break the most recent lower high at 3900, there is a good chance there could be a bullish rally this week.

Over 3900 and targets are 3950/4000/4030 to test the top of the sell-side golden pocket. Over 4030 and there is more room above to test the daily lower high at 4200.

Don’t forget that even if the SP500 makes a move above 3900 this week, the SP500 is still in a downtrend until 4200/4300 is broken with strong conviction from the bulls.

In my personal opinion, I think there is still a high chance of continuing lower, so keep your head on a swivel. Any move below 3700 on the daily time frame and ultimately 3600 will lead to targets of 3500/3400/and possibly lower.

$US30: Dow Jones Industrial Average

The SP500 is holding onto 3700 support at the moment, with a potential higher low being put in last Friday. If the bulls can hold this higher low at 3700 and move higher to break the most recent lower high at 3900, there is a good chance there could be a bullish rally this week.

Over 3900 and targets are 3950/4000/4030 to test the top of the sell-side golden pocket. Over 4030 and there is more room above to test the daily lower high at 4200.

Don’t forget that even if the SP500 makes a move above 3900 this week, the SP500 is still in a downtrend until 4200/4300 is broken with strong conviction from the bulls.

In my personal opinion, I think there is still a high chance of continuing lower, so keep your head on a swivel. Any move below 3700 on the daily time frame and ultimately 3600 will lead to targets of 3500/3400/and possibly lower.

US100: Nasdaq 100

The Nasdaq might be the ugliest out of all the indexes right now, with it managing to barely make a higher low and hold 11250 support last week. With all of the other indexes in mind, I think the Nasdaq could make a move higher this week too to re-test resistance at 11750/12000/12500/ and potentially 13000.

As long as the Nasdaq remains below 13000 and continues to get denied from this level, then the bears will remain in control. With that being said though, the last technical lower high is at 12250, any move above this could give the bulls the strength they need to move higher.

You can see that the Nasdaq already tested the sell side golden pocket with a perfect rejection off 12000-12250. If the bulls can not hold this week and ultimately 11000 is lost, then targets below are 10500/10250/10000 and potentially lower

All in all, this chart is very ugly and I think there are better looking indexes to be trading at the moment.

$US2000: Russell 2000

The Russell is still managing to hold onto 1700 support, which is a very bullish development as long as 1700 is held for the bulls.

As we have mentioned many times, 1700 is the previous all time high back from 2019-2020, so this level being held is key to the market and potential outlook for growth and smaller market cap names.

If 1700 can continue to hold, look for the Russell to move up to re-test the last lower high at 1800. You can see that the sell side golden pocket is between 1800-1850, so there should be heavy resistance at these levels. Anything over 1850 though will lead to a move up to targets of 1900/1950/2000. 1950 is another critical level and another lower high that the market will be watching as well.

All in all I think this is the best looking chart out of all the indexes at the moment, and as long as 1700 holds there is solid risk reward to go long here. Anything below 1700 and the Russell will move down to 1600/1500/ and potentially 1400 support.

$VIX: Volatility Index

The VIX is still trending below $30, which is a solid sign for the broad market bulls this week.

If VIX continues to get denied from $30 resistance, look for the VIX to move down to $25/$20 supports. Both of these supports are very strong for the bulls on VIX, and the last higher low on the VIX is set at $25 as well.

Under $25 and the VIX will break the uptrend here and move to $20 support, which has proved very strong over all of 2022. Under $20 and the VIX will return to more normalized levels of $18/$16/$14/$12.

If the VIX can hold support at $25 and break over $30, look for VIX to re-test $35 like it has almost 6 times before now. Over $35 and that would be a major breakout for VIX bulls, targets on that would be $40/$45/$50 and potentially higher. This would be the worst case scenario for broad market bulls.

All in all though, I think the bears are starting to take control here with the last two months rejecting $30 pretty hard here on the VIX.

$XAUUSD: Spot Gold

Gold continues to look worse and worse week by week, with last week leading to a small break of 1800 that was bought up pretty quickly.

As I have said many times before, any sustained move under 1800 is extremely bearish on Gold and targets would be 1750/1700/1650/1600 and potentially lower.

If Gold can manage to hold onto 1800, then I think there is a chance it returns to resistances above at 1850/1880-1900. With that being said though, there is a lot of work this chart needs to do before it can move higher.

In my opinion, Gold is due for a breakdown with its continued failure of 1850 resistance and the fact that it has now essentially double topped on the macro time frame. Under 1800 is a perfect opportunity to get short on Gold and let it ride to targets below mentioned above.

Technical Analysis

$AAPL: Apple

Very interesting formation here on Apple.

We got a nice pullback after this rising wedge breakdown on the hourly chart, but we formed a “megaphone pattern” immediately after.

The megaphone is basically the opposite of the wedge, where the start of the pattern formation experienced more consolidation and the range of the pattern actually widens instead of tightens.

Megaphones traditionally imply volatility, so we’ll need to monitor Apples price action after this breakout. We have levels to play to both sides of this pattern on the Daily Watchlist!

$AMZN: Amazon

Very similar pattern here on Amazon that we just highlighted on Apple.

This doesn’t matter TOO much, but this one is definitely more of a defined channel instead of that megaphone pattern above, all that means to us is that we can expect more traditional reversal action (for now) instead of major volatility like we’ll be expecting on apple.

Really love this name for bullish plays over $110 this week, but it’s a little hard to find key levels for targets above that move. The $114.5 to $116.1 gap has already been filled. The only major target I have is $120.92 which would be a wild price target to set for a $10 below trigger.

Going to more than likely take a little swing with $120 calls on Tuesday if we get this trigger and just set a hard stop down near $106. The R/R on this would be 2:1, but it’s still a risky swing and the $4 move down from entry would be about 150-200 in delta depending on the contract size. Don’t oversize on that!

$MSFT: Microsoft

Starting to get repetitive here, but we’re seeing similar setups on a majority of the popular tech names right now.

Only difference here is that I believe the head and shoulders (highlighted circle) is a bit more clear here. That doesn’t do anything for us moving forward, but it’s important to note that is the most defined H&S on the list so far.

Really love the $254 hold that we saw last week, that was an hourly HH that we held perfectly last week meaning that level is still being respected.

Certainly don’t need to be playing each one of these reversal opportunities, but the R/R is a little different on this one compared to Amazon.

We’d have our stop loss at $254 which is more than $5 away from the underlying and will be $7 to $8 below it after we get a trigger. Simply put, the risk is much higher.

So, I believe we should wait for a trigger over $261.5 and look for a back test bounce of that level. That way we’re buying a small pullback and can set a reasonable 20-30% stop at the entry instead of 80-90% if we moved all the way back to $254 after entry.

$NVDA: Nvidia

NVDA appears to be lagging behind those other popular tech stocks.

There’s not a channel or megaphone breakout in sight, and it hasn’t even attempted to make a higher high on this timeframe.

That being said, this is a beautiful reversal opportunity that we do not have to chase.

I really like a speculative position down here in anticipation of a bullish breakout of this falling wedge.

Ideally we would enter our position within this pattern with a 25% to 35% stop loss. Our hard stop would be $144, but we don’t want to get shaken out of this. Speculating early is very different from a breakout confirmation trade. With a breakout confirmation we want to be out at soon as our stop is hit, with these, we’re getting in early while it’s still down-trending so we can’t exactly get stopped on some bearish continuation in the downtrend.

What’s that mean? This is the riskiest trade idea so far since we’d be speculating. Target would be $154 / $155 which was the key support level we broke to get this downside.

$AMD: Advanced Micro Devices

Chip sector’s going to look the same, which is why AMD is so similar to NVDA with this 1h setup. Just wanted to throw this on if you’re looking for a lower beta option to NVDA.

The consolidation I highlighted makes me think that we may even see one more lower low move on this, especially since we’re not near key levels from the past.

However, I certainly like this the same as I do NVDA, small account position speculative swing for the laggards.

Targets would be $75, $78, $80.35, then $85 to $87.6 if we got seriously bullish this week.

Stop is hard here just like NVDA, conservative traders will probably need to get stopped on a 15 to 30 minute close below $72.5. Traders with less of a worry should consider 30-50% stop loss to give it room.

Once again, this is a pure speculative play. We have no confirmations saying we will go higher, just the pattern which is hinting that we SHOULD soon. Still no guarantee!

$IBM: International Business Machines

Switching from hourly charts to monthly for this one. IBM investors, we’re still looking bullish over this monthly trendline resistance.

It’s certainly taking its sweet time to gain some traction, but there’s something to be said for not failing this breakout while the rest of the sector has faced immense selling pressure these last few months.

Definitely one of my favorite less known investment opportunities out there right now, if you’re a tennis fan, you saw IBM all over Wimbleton this weekend!

Targets for the long term are listed on the chart.

$CRWD: Crowdstrike

Probably one of my favorite setups this week, but not something we can speculate.

Bullish Case: trigger over $185.2 on this weekly chart. We have a clear inside bar with last weeks candle close that gives us a weekly double top at $185.2, over this and we will certainly run hard towards $200.

If we do not get this trigger, or if we fail the breakout. We will immediately be looking to short the bear flag on the weekly chart as well.

We have two ideas for a trade in either direction here. If we get a weekly close below trendline support of that bear flag we will retest the lows near $140 / $150 and make back all the losses on a failed breakout over $185.2.

Going to update this throughout the week unless it just gets some disgusting chop that invalidates both of these opportunities.

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What Our Analysts Are Watching This Week

The market continues last week’s theme of having an insane lineup of economic announcements with some of the highlights being the FED
Manufacturing Surveys, GDP on Wednesday, Jerome Powell on Wednesday, and the ISM Manufacturing Index this Friday.

All of the other major events below could also influence the market and expectations going forward, so make sure to keep a close eye on the calendars this week. The SP500 and other indexes did manage to
break above the previous lower low last week, which is showing a failure to go lower from the bears.

If the bulls can break the last lower high pivots on the various indexes this week, the market could be putting in a potential short term bottom in the short term. With all of this being said though, the VIX remains above $20-$25 and there is still high risk associated with the market right now, so tread carefully!

Top Economic Announcements

  • Durable Goods Orders Reported Monday @8:30 AM EST
  • Dallas FED Manufacturing Survey Released Monday @10:30 AM EST
  • International Trade in Goods Reported Tuesday @8:30 AM EST
  • FHFA House Price Index Reported Tuesday @9 AM EST
  • Consumer Confidence Reported Tuesday @10 AM EST
  • Richmond FED Manufacturing Index Released Tuesday @10 AM EST
  • FED Mary Daly Speaks Tuesday @12:30 PM EST
  • FED Loretta Mester Speaks Wednesday @6:30 AM EST
  • GDP Reported Wednesday @8:30 AM EST
  • Corporate Profits Reported Wednesday @8:30 AM EST
  • Jerome Powell Speaks Wednesday @9 AM EST
  • State Street Investor Confidence Index Released Wednesday @10 AM EST
  • Survey of Business Uncertainty Released Wednesday @11 AM EST
  • Jobless Claims Reported Thursday @8:30 AM EST
  • Personal Income & Outlays Reported Thursday @8:30 AM EST
  • ISM Manufacturing Index Reported Friday @10 AM EST

Broad Market Analysis

SPX500USD: SP500

The SP500 made a solid comeback last week, with it managing to close above the previous lower low on Friday.

This to me spells a potential reversal, as long as the SP500 can maintain over 3800-3850.

If it can hold 3800 and trend higher in the coming weeks to re-test the previous lower high at 4200, then that would be a major pivot point.

Any move above 4200 (preferably acceptance over 4300) would indicate a reversal in the short term downtrend and the SP500 would trend higher towards targets of 4300/4400/4450 and potentially higher.

If the SP500 cannot manage to break the previous lower high at 4200 and gets denied, then expect the SP500 to sell off and re-test the most recent lows at 3640-3650. As long as 4200 remains the previous lower high and the SP500 sets another lower high, then expect 3650 to be tested and potentially lower to 3600/3500/3400.

Considering that the VIX has failed to break over $30 again, I would expect some juice from this rally at least in the short term.

$US30: Dow Jones Industrial Average

The Dow also managed to break back above the previous lower low, after it also re-tested and held the key level of 30000 support.

As long as the Dow stays above 30000, then the bulls may have a shot here at reversing the short term downtrend. In order for this to happen though, the Dow will need to break above the previous lower high at 33500. There is a lot of resistance between 33500 & 34000, so ideally you would want to see the Dow break over 34000 for confirmation

With that being said, the Dow is still a ways off from reversing the trend and major resistances at 32000/32500/33000 remain above.

If the Dow can clear these resistances in the weeks to come, then the bulls will have a chance at reversing the trend.

Under 30000 on the Dow and the trend will instantly revert back to bearish and call for targets of 29000/28500/28000/27500 and potentially lower.

US100: Nasdaq 100

The Nasdaq broke above the previous lower low pivot last week at 11750 as well. If the Nasdaq can maintain momentum and price action above 11750, we would expect the Nasdaq to trend higher towards resistance at 12250-12300/12750/13000.

13000 is obviously a major pivot on this chart for many reasons, with it easily being the most key level to watch going forward. If the Nasdaq breaks over 13000, that will shift the short term downtrend and call for higher prices. Technically and psychologically, 13000 is a major level, so any price action sustained above this level is also very bullish.

Over 13000 and the Nasdaq should returns to resistances at 13500/13750/14000/14500.

If the Nasdaq does not maintain bullish price action above 11750 and sets a lower high compared to 13000, look out for new lows on the Nasdaq. Targets on a break of 11750 are 11000. Anything below 11000 and targets are 10500/10000/9500/9000.

$US2000: Russell 2000

The Russell might actually be the saving grace of the entire market right now, with it managing to hold the key support level of 1700 last week.

Last week we highlighted how if the Russell holds this level, that would be a potential double bottom at the previous highs of the prior trend. For anyone unfamiliar, this is a textbook back test setup as long as 1700 holds.

Back tests are usually very bullish in the long term, but it could take some time for the chart to bottom out here no doubt. As long as 1700 holds and price is accepted above this level, the Russell’s next target is 1900-1950 where the last lower high is. Anything over 1950 and the Russell will head to psychological and major technical resistances of 2000-2100. These levels are extremely strong and its important to remember that even if the Russell breaks over 1950, it is still technically in a downtrend.

All in all though, this is a pretty textbook looking back test and it would be extremely bullish in the long term if a potential bottom formed here.

Anything below 1700 though would be extremely bearish and the Russell would move to targets of 1600/1550/1500/1400. Any breakout to these levels would be extremely bearish for the broad market as well.

$VIX: Volatility Index

Once again the VIX failed to break over $30-$35 resistance, which has been formidable resistance for practically a whole year now. If the VIX continues to hold below $30, look for the VIX to returns to supports at $25/$20. Either of these levels could provide a solid bounce for the VIX as they are major supports.

Additionally, the last higher low on the VIX is set at $25. As long as VIX can maintain above $25 and set a higher low above that, then there is a chance the VIX could retake $30 and move to $35/$40 resistances as it has in the past.

If $25 is broken, then the higher low pivot is broken and the short term uptrend is also broken. This would call for the VIX to test $20, which is the last line of defense for the broad market bears. Anything below $20 and the VIX goes back to supports at $18/$16/$14/$12.

All in all, the VIX has been setting some lower highs here, but it is also trending upward in terms of higher lows. The VIX could break either direction here, but it’s going to make a major move very soon. Look out for high volatility!

$XAUUSD: Spot Gold

Gold is still failing to break over 1880-1900 resistance, with it holding below it for quite some time now. I am beginning to believe that this could be a potential top forming, with the weekly time frame looking like a pretty clear double top.

With this being said though, there is still a potential chance for the bulls on Gold as long as 1800 holds. Anything below 1800 and Gold is 100% going to selloff massively down to targets of 1750/1700/1650/1600 and potentially lower.

The only reason Gold still has a chance here is because the last higher low is set at 1795-1800, which is the key level for Gold going forward.

If Gold can hold 1800 and break above 1880-1900, then look for Gold to make an explosive move to the upside with targets of 1950/2000/2050/2100 and potentially higher.

At the end of the day, this chart has no setups until either 1800 breaks or 1900 breaks. Be patient and Gold will reward you, it tends to make explosive moves when it does breakout.

Technical Analysis

$KR: Kroger

KR is consolidating nicely here on all timeframes and are chilling right in the macro golden pocket as well. KR is a great long term add down here, but we can also see them making a nice intra-week trade as well!

If KR can break over $48.62, KR has a lot of room up to our 1st target at $50.71, our second target at $51.73, & our 3rd target at $53.07.

If KR breaks below $47.56, then we could see a continuation of the bearish move back down to $46 area.

$TSM: Taiwan Semiconductor

TSM is in an interesting spot here. They are at a nice macro demand zone and put in a nice doji weekly candle. Lets not get this mixed up, this weekly trend is heavily bearish, but if TSM can break over $87.75, we think it could see a nice DCB. They also have earnings coming up so a pre earnings run up could be in the cards as well.

If this weekly thesis plays out, a target of the weekly lower high near $95 would be a good target.

If TSM breaks below last weeks low, look for a continued consolidation/move back down to the mid $70’s.

TSM is still a great company and we think you could comfortably add long term shares down here as well.

$BA: Boeing

BA played out perfectly from last week with the weekly failure to go lower and relative strength!

BA has officially cleared the critical level of $140.85 and has clear skies up to $148.93. We also have targets up at $151.40 & $157.28. As long as the market does not hit us with the reverse 180, BA should be a top long watch for the week.

If BA does begin to pullback, there is still massive support back down near $130.61. As long as this level holds, BA can continue to remain bullish on the daily frame, but this would not look too good on the weekly chart.

$NVDA: Nvidia

NVDA had a monster day on Friday and actually triggered some bullish developments. They had a nice failure to go lower pattern set up on Thursday and officially triggered that with Friday’s candle. If NVDA can clear and accept over $171.86, there is room up to our level at $186.12.

Make sure to keep an eye on the gap fill at $180.41 as well. Keep in mind that NVDA is still in a heavy downtrend so we could see a failure and move lower at any point, but if the market continues to hold strong, NVDA should follow.

If they do pullback, look for support at $168.61 & $163.20.

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Two 3D Printing Stocks for Making Profits

I’ve been having a lot of fun lately with my 3D printer. I grabbed an Elegoo Mars 3 on sale so I can make miniatures.

But while I’m a total hobbyist, the 3D printing industry is big business. The global 3D printing market is expected to grow from $12.6 billion in 2021 to $34.8 billion by 2026 at a compound annual growth rate (CAGR) of 22.5%.

So how can you get a chunk of that?

Here are two 3D printing stocks we think are worth checking out.

1. Desktop Metal (DM)

If you have a 3D printer at home, you probably use it to make things out of plastic or resin. But when we’re talking about 3D printing on an industrial scale, metal is a commonly used material.

Desktop Metal is a company that manufactures 3D printers, software, and equipment that build detailed, complex components out of metal. It makes a lot of parts for the automobile industry. In fact, BMW and Ford (F) have been early investors in the company.

The World Economic Forum even named Desktop Metal a Technology Pioneer in 2017.

However, since its stock became publicly listed in December 2020 (through a special purpose acquisition company, rather than a traditional initial public offering), its performance has been lousy.

After peaking above $31 per share in early 2021, DM has sunk to around $4.25. And today’s price is even less than half of what the stock first traded for. If you had bought when DM went public, you could be sitting on a loss of more than 56%.

But that could be good news, because we think there’s much more growth to come with Desktop Metal. The Wall Street consensus believes the stock will rise by 125% from current levels in 12 months.

And insiders have been snapping up shares of the company — always a good sign.

2. Materialise NV (MTLS)

Based in Belgium, Materialise is a company that offers 3D printing services. However, one of its fastest-growing businesses is its software as a service (SaaS) division.

Materialise serves a number of different industries, but its main focus is on healthcare, automotive, and aerospace.
The digital healthcare field itself has grown in leaps and bounds since the COVID pandemic first began. Materialise’s strong position in this industry helped the company benefit from medical technology trends.

The company has been growing its market share by making strategic acquisitions. In January, it completed its purchase of Lin3D, a workflow and digital manufacturing software company.

Materialise owns more than 120 industrial 3D printers in 20 countries. Clients, who are mostly manufacturers themselves, pay Materialise to make prototypes for products, as well as helping scale mass production.

In fiscal 2021, Materialise earned $225 million. That’s more than a 20% increase compared to 2020. And net profit came in at $14.3 million, a 281% year-over-year increase.

The company has forecast at least 10% revenue growth for fiscal 2022 — largely due to its recent spending.

However, year to date, MTLS stock is down more than 25%. That gives you a good opportunity to take advantage of this stock at a low price. Wall Street is expecting it to grow by more than 30% in the next 12 months.

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What Is HODL Investing?

“HODL” is a new investing term most often associated with cryptocurrencies. You may have come across it while perusing Reddit threads.

It started out as a misspelling of “hold.” But HODL has also come to serve as an acronym for “hold on for dear life” among crypto investors.

In essence, HODL means buying Bitcoin or another cryptocurrency and holding it through market volatility.

How Did HODL Start?

As you might imagine, HODL started out like a joke.

It all began with a drunken post on the Bitcointalk forum back in 2013. That was a monumental year for Bitcoin – the currency rose more than tenfold from April to December.

On December 18, forum user GameKyuubi posted: “I AM HODLING,” followed by a rant about why he was holding onto his Bitcoin position despite forecasts that Bitcoin’s value was about to fall:

“In a zero-sum game such as this, traders can only take your money if you sell.”
Almost instantly, HODL became a meme phenomenon.

What Is the HODL Strategy?

After the initial jollies of the HODL meme wore off, many crypto investors began to apply “hold on for dear life” to the sort-of word and adopted this as their mantra.

HODL investors buy and hold crypto for the long term, regardless of what the market does. They disregard even large price swings.

Why?

Simply put, they believe that cryptocurrencies will one day replace central bank-issued money as we know it and become the basis of the global economy. By holding large crypto positions starting now, they’ll be ahead of the game.
Of course, if this ever happens, it will be years in the future. So if you’re a crypto HODLer, be prepared to hang on for the very long term.

Applying HODL to Stocks

Of course, you can also HODL with stock investing. And while a number of Reddit-based investors have applied this philosophy to meme stocks like GameStop (GME) and AMC Entertainment (AMC), it’s not really a new strategy.

Many investors buy dividend-paying stocks and hold onto these stocks for an additional source of income. That’s because dividend stocks hand you regular payments just for being a shareholder.

Now, unlike cryptocurrencies, dividend-paying stocks tend to have values that don’t fluctuate much. Think Johnson & Johnson (JNJ) and Coca-Cola (KO). These seem like pretty boring stocks. But the investors who have collected passive-income checks from them every quarter for decades would beg to differ.

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Crypto Definitions Trading Guides

What Is a Stablecoin?

As you read and learn more about cryptocurrency, one term you might come across occasionally is “stablecoin.”
What are stablecoins, and how do they work? In this quick guide, we’ll cover the basics.

What Are Stablecoins?

Stablecoins are digital currencies whose market values are pegged to reserve assets like gold or U.S. dollars. Because they’re backed by “stable,” physical assets, stablecoins should be far less volatile than other cryptocurrencies, such as Bitcoin.

However, because stablecoins are so darn… well… stable, they’re not particularly effective for earning profits from speculative trades. After all, their appeal is in the fact that they don’t fluctuate by the minute, like other cryptocurrencies.

Most stablecoins are used for specific trading platforms. For example, the USD Coin, which is pegged to the U.S. dollar, was created to be used on Coinbase. Tether is used primarily on Bitfinex.

And Binance USD is used on… you guessed it… Binance.

What Can You Use Stablecoins For?

The main use of stablecoins is for facilitating trades on cryptocurrency exchanges.

When buying cryptos like Bitcoin or Ether, exchange users trade their fiat money (such as U.S. dollars or euros) for stablecoins and then use those stablecoins to buy other cryptocurrencies.

And then, when “cashing out” of a crypto trades, they’ll receive stablecoins and can then swap them out for regular currency or put them into other crypto trades.

Think of stablecoins like tokens at an arcade.

But stablecoins can also be used to transfer money across international borders without incurring crazy-high fees.
This use for stablecoins has made headlines recently, because many people are using stablecoins to donate directly to charities helping Ukraine.

Recently, the refugee agency of the United Nations, UNHCR, began accepting billions of dollars’ worth of stablecoins to provide humanitarian aid to Ukranians fleeing the war.

You can also use stablecoins to earn interest. Platforms such as Celsius, Nexo, and Blockfi pay annual percentage yields as high as 20% — that’s far better than what you can expect from any bank savings account.

For more advice and education on trading stablecoins, Bitcoins, NFTs, and everything else cryptocurrency-related, check out Titan Alerts. A basic membership is 100% free, and you’ll receive daily trading intel and education.

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Crypto Definitions Trading Guides

What Are Altcoins? Should You Invest in Them?

The world of cryptocurrency is full of jargon. And one of the most often-seen terms in this sphere is altcoins.
If you’re wondering what exactly altcoins are, you’ve come to the right place. In this quick definition, we’ll explain what you need to know.

What Are Altcoins?

Believe it or not, the basic definition of altcoins is pretty simple.
In a nutshell, an altcoin is any cryptocurrency that is not Bitcoin. Yes, that includes Ether, the second most popular cryptocurrency.

See, back in the day, Bitcoin was the only cryptocurrency available. When other cryptos came onto the scene, they were viewed mostly (and some would say, dismissively) as alternatives to Bitcoin.

Hence, altcoins.

But now altcoins have started to come into their own. As of February 2022, there were more than 17,000 of them.
And while Bitcoin is still the largest cryptocurrency by market value, it’s possible — and even likely — that these altcoins will replace it in the top spot. But it won’t happen today.

As I write, one Bitcoin (BTC) is valued at just north of $44,000. Its market cap is more than $816 billion.
By comparison, Ether’s (ETH) price is currently just over $3,110, and its market cap is just over $373 billion.
Together, Bitcoin and Ether account for roughly 60% of the total crypto market.

Because most altcoins are derived from Bitcoin, their prices tend to move in tandem with Bitcoin’s. However, analysts expect that future developments in the crypto market as it matures will cause altcoin’s prices to break away from the fluctuations of the larger coin.

What Are the Most Popular Altcoins?

Here’s a rundown of five top altcoins:
1. Ether (ETH): Ether can be a little confusing, because the coin is sometimes referred to as Ethereum. However, Ethereum is the decentralized software platform the Ether exists on. Ether facilitates transactions on the Ethereum network. The Ethereum platform operates with a proof-of-stake (PoS) algorithm. This allows the network to run more efficiently and use far less energy than Bitcoin.

2. Litecoin (LTC): Litecoin was among the first altcoins. It was created by Charlie Lee, a former engineer at Google. Litecoin’s transaction confirmation system is faster than Bitcoin’s, making it a favorite among a growing number of online retailers.

3. Dogecoin (DOGE): Dogecoin was the first of what have come to be known as “memecoins.” It was created as a joke and was originally intended to tip Reddit users for amusing posts. Now the coin, which has a Shiba Inu dog as its mascot, has come to be accepted as a form of payment by a handful of major companies. Elon Musk, CEO of Tesla, is DOGE’s most vocal fan.

4. Cardano (ADA): Like Ether, Cardano operates with an efficient and more environmentally friendly PoS algorithm. It was designed by a team of academics and has the goal of becoming the globally accepted financial operating system (sort of like SWIFT).

5. Polkadot (DOT): DOT is a cryptocurrency that was developed to connect other blockains. It allows different crypto platforms to work together. Developers can use DOT to create their own blockchains while using Polkadot’s security protocols. This makes DOT especially safe from hacking.

Should You Invest in Altcoins?

Altcoins are like the penny stocks of the crypto world. With the exception of Ether, they haven’t established themselves quite as well as Bitcoin and are therefore a bit more volatile.

Still, a lot of investors are buying altcoins that they believe will be the next top cryptocurrency. And because some of them are quite cheap, they might be a fun speculation. However, never bet any money you can’t afford to lose into risky plays like altcoins (or crypto as a whole, for that matter).

For more advice and education on trading altcoins, Bitcoins, NFTs, and everything else cryptocurrency-related, check out Titan Alerts. A basic membership is 100% free, and you’ll receive daily trading intel and education.