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Weekly Newsletter – June 17, 2019

Weekly Stock Market Newsletter - June 16, 2019

June 17, 2019

Hello there! Below is your edition of this week’s newsletter. We hope you have a great trading week! 

 
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Current Futures

DOW:

+68 (.26%)

S&P 500:

+7 (+.27%)

NASDAQ:

+33 (+.43%)

BITCOIN:

+765 (+9.06%)

GOLD:

+1.3 (+.10%)

State of the Markets

Market futures are currently heading toward 6-week highs here in early futures trading. There is major anticipation of the fed cutting rates soon, as early as this week, but more than likely next month. However, with markets running up in the way that they are over the last week, the sentiment could quickly change. It’s a total mess out there. Be sure to stay ony our toes and remember what i’ve talked about the “shock factor” and how that will influence how to safely play these markets be it long or short.

KAF Stock Picks

Written By: KAF – Lead Stock Trader

BYND

Beyond Meats ($BYND) is a producer of alternative meats. The stock has soared as much as 800% since its IPO which was just over a month ago. The short squeeze has been incredible, but like all short squeezes, they come to an end. My ultimate price target for this stock, and my honest valuation of the stock is $21 a share. Before we see that level though it will likely be 12-18 months. However, for a short term trade, I am anticipating a quick gap fill down to the $100 level, by this Friday, or next Friday at the latest. You will notice the major gap to be filled under critical $125 support and on Friday we saw some very important intraday trend support breakdown which will helped be a trigger to the bigger spillout. The most important level on this name is the $150 level, that marks a 5 day trendline breakdown, and from there there isn’t much until down at $125, and under that we officially have a gap fill to $100. $100 is an important natural levle but also psychological level due to it being the level that the stock was flating around before its recent earnigns release. By August 1 i’m anticipating this stock is floating around the $80-$90 level which is about a 50% pullback from this level.

Penny Stock Picks

Written By: CQB – Penny Stock Moderator

TLRY

Tilray, Inc. ($TLRY) is a Cannabis Manufacturing & Distributing company in the Healthcare sector. This company received a nice sympathy move from its coupled news catalyst with $NEPT on Friday. Neptune Wellness ($NEPT) signed a multi-year extraction & purification deal with Tilray, which is why we see the upward action from both companies. As Cannabis stocks heat up ahead of earnings, I expect this stock to continue its momentum on Monday. I plan to day trade this over the $39.00 natural resistance level!

SENS

Senseonics Holdings, Inc. ($SENS) is a Medical Appliances & Equipment company in the Healthcare sector. This company got a boost earlier last week from news of FDA Approval for its “Non-Adjunctive Indication For Eversence CGM System.” Since the fresh momentum faded away, it has sold off, down to lows of $1.85 on Friday. During after-hours though, it began reversing out of its downtrend and testing the $2.00 whole dollar resistance level. The resistance points are a bit choppy between $2.00 – $2.05, so I plan to day trade this over the $2.05 level for the confirmed trend reversal!

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Earnings Calendar

Quote of the Week

“Zeal is a volcano, the peak of which the grass of indecisiveness does not grow.” 

– Khalil Gibran

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Weekly Newsletter – June 10, 2019

Stock Market Newsletter: June 10, 2019

June 10, 2019

Hello there! Below is your edition of this week’s newsletter. We hope you have a great trading week! 

 
KAF Tax Management
Taxes are a hassle. Let us simplify it.

Current Futures

DOW:

+123 (.47%)

S&P 500:

+14 (.49%)

NASDAQ:

+43 (.57%)

BITCOIN:

-365 (-4.56%)

GOLD:

-7 (-.53%)

State of the Markets

Last week markets made a massive 5% push on news; that the Fed is likely to cut interest rates in July, but some real hopefuls are hoping for that cut in June. Currently markets have priced in a 20% chance for interest rate cut in June, and a 70% chance for rate cuts in July. 

So what does this mean? 

If rates are cut in June, then markets will POP, and if they don’t markets won’t really mind. If they cut in July, markets will not do much because, you guessed it, it will be priced in. But if they don’t cut in July, then its major selling time, as this week’s massive 5% push calculated for that rate cut.

There is more news to be discussed as well though. Friday late evening President Trump announced that the U.S. and Mexico had agreed to a trade deal. There are a lot of moving parts with this deal including some aspects of border security that are required by Mexico, but in short, markets will love that news and expect a significant gap up tomorrow. 

 

Now on the negative/bear side, the U.S. jobs report for May was released last week and they were the worst growth numbers since roughly 2010. Only 75,000 jobs were created against the expected 185,000. The numbers were abysmal, however no one even blinked an eye. We also have to remember that anytime we get a fed rate cut, that implies our economy and markets aren’t strong enough. In a sense, it’s almost like a stimulus package. 

 

So while markets are currently focusing on all the bullishness that the news above brings to markets, you have to be educated and aware that this news is two-sided, and there are plenty of bear markets to be made. In short, don’t get too comfortable out there. 

KAF Stock Picks

Written By: KAF – Lead Stock Trader

BYND

Beyond Meats ($BYND) The major short squeeze on Friday led to the short float moving from 51% down to as low as 25%. This means that roughly half of the shorts who were in BYND had to buy on Friday and exited their short position. Additionally, roughly 24 million shares were traded on Friday, and about 6.5 million of that were short sales. These numbers are important and mean a few things, first, this verifies that a large portion of buying on Friday were shorts exiting. And even though there was some volume with shorts trying to enter BYND on Friday, they only made up about 1/5th of all the trading volume from Friday. While there certainly are still alot of shorts in this name, on Monday we will start to see shares become available to short more readily, which should take a lot of pressure off the short squeeze. Next, we have to consider the very high turnover on the float from Friday. The stock traded 2.5X its float on Friday, making the average buy on Friday right at about $132. Now, this is a BIG deal. For a few reasons. This means that when the stock falls under $132, the average buyer from Friday is red. Additionally, this level is incredibly important because it acted as MAJOR support from friday as the stock put in a triple bottom mid day right at $132. Additionally this $132 level was major resistance earlier in the day as well. So, we have a lot of things happening and riding on $132 support. The fall under $132 should likely mean the stock is done making new all-time highs, and the slow trickle back to halfway understandable valuation levels kicks in. Keep in mind everything I mentioned here is purely off the intraday trading aspects of the stock, I won’t even get into the insane valuation levels. Price target on this stock within 5 years is $21. But thats meaningless if you’re day trading it. Also, would not be surprised at all to see a secondary this week so Beyond can take advantage of the valuation levels they are currently getting.

AMBA

Ambarella Inc ($AMBA) is a semiconductor play related to HD video. I like this namea  lot and I love their earnings they posted last week. We saw this make a wild green to red move the day it posted earnings and now its sitting about a delow below where the stock was before they released the strong earnings. $40 is the big breakout level here and we should see $43 by end of week. Be patient, these swing set ups have been money, as long as markets are decently rational, which of course is never a guarantee.

Penny Stock Picks

Written By: CQB – Penny Stock Moderator

TLRY

Tilray, Inc. ($TLRY) is a Cannabis Manufacturing & Distributing company in the Healthcare sector. This company received a nice sympathy move from its coupled news catalyst with $NEPT on Friday. Neptune Wellness ($NEPT) signed a multi-year extraction & purification deal with Tilray, which is why we see the upward action from both companies. As Cannabis stocks heat up ahead of earnings, I expect this stock to continue its momentum on Monday. I plan to day trade this over the $39.00 natural resistance level!

SENS

Senseonics Holdings, Inc. ($SENS) is a Medical Appliances & Equipment company in the Healthcare sector. This company got a boost earlier last week from news of FDA Approval for its “Non-Adjunctive Indication For Eversence CGM System.” Since the fresh momentum faded away, it has sold off, down to lows of $1.85 on Friday. During after-hours though, it began reversing out of its downtrend and testing the $2.00 whole dollar resistance level. The resistance points are a bit choppy between $2.00 – $2.05, so I plan to day trade this over the $2.05 level for the confirmed trend reversal!

Want more picks? Try us free for seven days!

Share Our Newsletter With The World!

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Earnings Calendar

Quote of the Week

“Zeal is a volcano, the peak of which the grass of indecisiveness does not grow.” 

– Khalil Gibran

Contact Us

Email: support@kafinvesting.com
Send us a quick email and we will get back to you as soon as possible!
24/7 Customer Support! Contact us anytime.