Well, the talking heads are one step behind… yet again. The market is on its march to all-time highs, but we’re still hearing talks of recession.
However, we’ve already heard Fed Chair Jerome Powell downplay those talks of the U.S. and the rest of the world heading for a recession — sending stocks higher on Friday.
Not only that, but with a mixed September’s jobs report, the Fed may be looking to cut interest rates this month… something traders have been looking for.
This is something I expected and let my clients know about. We’ve simply taken a lot of the directional risk out of the markets, and the thing is… you can still make money without ever touching the SPDR S&P 500 ETF (SPY).
Right now, I’m going to be patient and wait for all the news to flesh out before placing a directional bet on the market… because as we all know, when everyone behaves like sheep — they get led to the slaughter.
However, that doesn’t mean I won’t be stalking stocks for opportunities… because there are plenty I’m seeing pop up like moles and I’ll be ready to whack em’ every chance I get.
For the most part, I’m going to be sticking with my charts, and I do see some setups in a few names right now — like some recent IPOs, and stocks that aren’t moving in tandem with the market now — NFLX, FB, CGC, TWLO to name a few.
With that being said, this week’s edition of Jump includes some of my favorite setups and charts I’m watching currently, as well as economic catalysts, and corporate earnings and IPO calendars.
With the market acting the way it has… I’ve actually been looking to stocks that haven’t been moving with the market — ones that are uncorrelated to the SPDR S&P 500 ETF (SPY).
So how do you spot these opportunities?
It’s actually really simple.
All I really do is compare the charts of some stocks on my watchlist to the SPY chart.
For example, take a look at this hourly chart on Twitter Inc. (TWTR).
Now, compare that to the hourly chart in SPY over the same period.
As you can see, TWTR has actually been trending higher and trading above the 200-hourly simple moving average (SMA). On the other hand, SPY was just bouncing around between two levels (the support area at $282 and the resistance at $292).
Just by spotting that chart setup in TWTR… I was able to add to my winning streak with my Bullseye Trade — all of them have been winners so far!
But I haven’t been the only one taking advantage of these setups… in fact, many of my clients have been pulling in some massive winners.
That’s pretty much what I’ll be doing for many of my plays. For example, I’m keeping a close eye on Netflix (NFLX) and will place a strategic bet once I see my pattern come up.
Companies like NFLX may have once traded in tandem with the markets. Now, outside of short squeezes, the stock and its story are broken.
When you compare NFLX to the SPY or QQQ, the charts look nothing alike. Sure they can trade together for multiple days in a row. But the overall trend in NFLX is lower.
Just take a look at QQQ — the tech tracking ETF — over the same period that NFLX has been plummeting.
Those two charts look nothing alike.
For me, I will be using chart patterns and resistance levels, and I’m confident selling call spreads in stocks exhibiting this pattern, even when the market itself is bullish.
Some call spreads I’m watching include:
FB, DE, IWM, ROKUE, NKE, FDX, TLT and AMZN
For put spreads, I’m keeping an eye on:
FIVE, CGC, TWLO, BYND, DIS, NOW, YETI, WYNN, SQ
Sizzling Opportunities in IPOs
I’ll also be keeping an eye on some recent IPOs as well.
You see, with IPOs they don’t trade with the market… they move to the beat of their own drum — that’s the perfect solution when you’re having trouble finding opportunities in the market.
I actually stumbled upon a brand-new IPO trading system developed by Ben Sturgill. If you don’t know who Ben is… I actually sat down with him recently as he interviewed me on the WealthWise Podcast.
It’s something we’ve never revealed before… and here’s a taste of how he trades IPOs.
Just take a look at the daily chart in InMode (INMD).
This is a big way that Ben trades IPO breakouts. He showed me this INMD chart… and even though I wasn’t watching it on IPO day… I’ll be keeping this stock on my radar because it’s not moving with the market whatsoever.
However, I don’t know all the ins-and-outs of his system… but Jason Bond and I will be sitting down with Ben Sturgill on Thursday, Sept. 12 at 8:30 PM EST — as he reveals how he finds EXPLOSIVE opportunities in IPOs every single week…
… with the IPO market heating up, this is going to be one strategy to add to your toolkit.
Some other recent IPOs I’m watching currently are CRWD, ZM, INMD, LK and GO — and I’ll get with you tomorrow about those setups.
The reason why I’m looking to other areas to make money is due to the fact that there are so many different catalysts that could move the market… and when we look to the economic calendar —you’ll see some important indicators.
Not only that, we’ve got the Fed meeting later this month… and who knows what their decision will be.
Monday, September 9
- 3:00 PM EST Consumer Credit for July
Tuesday, September 10
- 6:00 PM EST NFIB Small Business Optimism for August
- 7:45 AM EST ICSC Weekly Retail Sales
- 8:55 AM EST Johnson/Redbook Weekly Sales
- 10:00 AM EST JOLTs Job openings for July
- 4:30 PM EST API Weekly Inventory Data
Wednesday, September 11
- 7:00 AM EST MBA Mortgage Applications Data
- 8:30 AM EST Producer Price Index (PPI)
- 10:00 AM EST Wholesale Inventories
- 10:30 AM EST Weekly DOE Inventory Data
Thursday, September 12
- 8:30 AM EST Weekly Jobless Claims
- 8:30 AM EST Consumer Price Index (CPI)
- 10:30 AM EST Weekly EIA Natural Gas Inventory Data
- 2:00 PM EST Monthly Budget Statement for August
Friday, September 13
- 8:30 AM EST Import & Export Price
- 8:30 AM EST Retail Sales
- 10:00 AM EST University of Michigan Confidence
- 10:00 AM EST Business Inventories
- 1:00 PM EST Baker Hughes Weekly Rig Count
Other Key Events:
- Apple (AAPL) product event announcements (September 10)
- Democratic debate (3rd one) in Houston (September 12)
- 2019 World Conference on Lung Cancer, 9/7-9/10 in Barcelona, Spain
- Barclay’s Global Financial Services Conference, 9/9-9/11, in New York
- Credit Suisse 32nd Annual Basic Materials Conference, 9/9-9/11, in New York
- Deutsche Bank Technology Conference, 9/10-9/11, in Las Vegas
- HC Wainwright Healthcare Conference, 9/9-9/10, in New York
- Morgan Stanley 17th Annual Healthcare Conference, 9/9-9/11, in New York
Now, here’s a look at the upcoming earnings calendar — it’s going to be relatively light until earnings season picks back up in October.
We’ve got a couple of IPOs this week… and there’s one person I’m going to turn to and find the hottest ones — Ben Sturgill and his IPO Payday System.
- 10X Genomics Inc. (TXG) 9M share IPO expected to prices between $31-$35 per share
- Alerus Financial 3.25M share IPO expected to price between $22-$24 per share
- Cloudflare, Inc. (NET) 35M share IPO expected to price between $10-$12 per share
- Satsuma Pharmaceuticals (STSA) 5M share IPO expected to price between $14-$16 per share
- SmileDirectClub, Inc. (SDC) 58.53M share IPO expected to price between $19-$22 per share
- SpringWorks Therapeutics (SWTX) 7.35M share IPO expected to price between $16-$18 per share
There’s going to be a lot of opportunities out there this week… ones that don’t move with the market, and I’m putting my focus on those until further notice.
Right now, I think IPOs are going to be filled with a lot of moneymaking opportunities… and that’s why Jason Bond and I are sitting down with Ben Sturgill to hear what he has to say about his IPO Payday System.
It all goes down Thursday, Sept. 12 at 8:30 PM EST… and if you had plans of watching the Democratic debate, I’d suggest you skip that, otherwise, you’re going to miss out on a potentially life-changing opportunity.