Author: Ivanhoff

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This is the performance for the past 12 months:

IWM (small caps) -33%

SPY -14%

QQQ -0.70%

The Nasdaq 100 is basically flat for the past year in the midst of the biggest market correction for the past decade. How long can this last? The number of stocks on the 52wk high list continues to be extremely low. Furthermore, the breakouts to new 52-week highs are failing quickly.

I continue to be nimble and take profits quickly because if I don’t they disappear. Surviving a bear market requires the realization that what made you money in a bull market is likely to harm you now. Thriving in a bear market calls for nimbleness and understanding that many obvious breakouts and breakdowns are likely to shake you out before they make you money, most clear uptrends and downtrends last only a few days before they are interrupted by a violent mean-reversion.

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PERFORMANCE

Here’s a Google spreadsheet tracking all closed option and stock ideas shared on my private Twitter stream and weekly email for subscribers.


The charts in this video are powered by MarketSmith

The best-performing stocks in the initial stage of a relief rally are typically the ones that were hit the worst during the correction. This is exactly what we saw last week – mortgage investment trusts, casinos, cruise ships, restaurants, homebuilders, airlines went up 30-100% in just a few days. Most started to fade as they approached their declining 20-day moving averages towards the end of the week. The next potential stage of this relief rally is a choppy range-bounce price action during which we will probably see a rotation into the stocks that held the best during the correction.

I continue to stay liquid but I also see good short-term trading opportunities on a daily basis.

Try my new subscription service which includes a private Twitter feed with option and stock ideas, a weekly newsletter with concise market commentary and actionable swing and position trade ideas, the Momentum 50 list of market leaders and much more.

PERFORMANCE

Here’s a Google spreadsheet tracking all closed option and stock ideas shared on my private Twitter stream and weekly email for subscribers.

The charts in this video are powered by MarketSmith

The S&P 500 closed below its December 2018 lows. The next potential level of support is around $200. If that doesn’t hold, we are looking at 170-150. While the indexes finished weak last week, the number of new 52-week lows has been steadily declining. I see some positive momentum divergences in a deeply oversold market but this might not be enough for a relief rally. Maybe, the $2 Trillion stimulus bill will calm the markets down for a bit and lead to a short-term short squeeze.

I continue to stay liquid but I also see good short-term trading opportunities on a daily basis.

Try my new subscription service which includes a private Twitter feed with option and stock ideas, a weekly newsletter with concise market commentary and actionable swing and position trade ideas, the Momentum 50 list of market leaders and much more.

PERFORMANCE

Here’s a Google spreadsheet tracking all closed option and stock ideas shared on my private Twitter stream and weekly email for subscribers.