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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
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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!

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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 2, 2019

Weekly Stock Market Newsletter - June 2, 2019

June 2, 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:

-134 (-.54%)

S&P 500:

-13 (-.47%)

NASDAQ:

-43 (-.60%)

BITCOIN:

+330 (+4.23%)

GOLD:

-1.10 (-.09%)

State of the Markets

U.S. stocks finished lower on the week yet again, making it 6 red weeks in a row from the DOW, the longest res streak since 2011. This week had a totally new complication thrown in the mix, and that was tariffs amongst the U.S. and Mexico. The China U.S. drama continues, and also heated up even more this past week. There is a ton of opportunity both long and short in these markets. From a longer term standpoint, you have to just sit back and enjoy the market sell off, because if you were prepared for it like we have been, that means you have a lot of cash itching for you to put it to work. In the coming weeks, getting “starter” positions on some key names will be important. From a day trading standpoint, we are in heaven as the range and momentum patterns have been almost automatic for us to lock in profits on. It’s a great time to be a KAF Investing chat room member! We are playing options, pennies, mid caps, large caps, and everything in between. 

“U.S. stocks, Treasury yields, and oil prices all dropped on Friday after President Trump surprised the market by threatening to impose a 5% tariff rate on all goods imported from Mexico. Friday’s 1.3% decline in the S&P 500 sent it below its 200-day moving average (2776) and extended its weekly decline to 2.6%.—The Dow Jones Industrial Average (-1.4%), the Nasdaq Composite (-1.5%), and the Russell 2000 (-1.4%) extended their weekly losses to 3.0%, 2.4%, and 3.2%.—The 5% tariff rate will go into effect on June 10 and will increase incrementally during the summer to reach 25% on Oct. 1.”

KAF Stock Picks

Written By: KAF – Lead Stock Trader

OLED

Universal Display Corp ($OLED) is in the organic light emitting diode space, more commonly known as OLED. I really love this company, and this space a lot as their technology has become the main staple in so many different commerical, research, and even retail spaces. About two weeks ago they released some very strong Q1 earnings, and the stock initially spiked all the way to $190, but has been selling off ever since. This name is getting close to a major reversal and anything sub $150 for an entry is a gift here in the near term. I like this to reverse and fill a few gaps on the chart up to $160, from there it will need overall market strength if this wants to continue it’s road to $190, but it is certianly in the cards. As for an entry, notice the strong and clean downtrend from Friday. I am expecting this to get explosive up and over that downtrend, and that should initiate the gap fill back to $160.

GOOS

Canada Goose Holdings ($GOOS) is a clothing company specializing in coats. The company is based out of Canda but has stores all over, including in China. This sector and clothing has become a huge trend recently, and the recent earnings miss has set up for a very nice opportunity to play this double bottom, with a $36.50 breakout, and price target up to $42.

Penny Stock Picks

Written By: CQB – Penny Stock Moderator

AVEO

AVEO Pharmaceuticals ($AVEO) is a Biotechnology company in the Healthcare sector. This penny stock had a monster day last Friday, heading from lows of $0.64 to highs of $1.00 in after-hours trading. The steady uptrend and bullish sentiment is attributed to a press release last week, stating the company will present in the upcoming BIO International convention. I expect this uptrend to continue into Monday, and plan to day trade this over the $1.00 natural resistance level!

GNCA

Genocea Biosciences, Inc. ($GNCA) is a Biotechnology company in the Healthcare sector. This low-float penny stock went parabolic last Friday morning, getting halted a few times on its way up to a high of $8.00 (from lows of $5.00). The huge move came from the Journal of Clinical Oncology selected the company’s trial data to present in an upcoming ASCO annual meeting. I expect momentum to continue into Monday, and plan to day trade this over the $6.25 natural resistance level!

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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 – May 27, 2019

Weekly Stock Market Newsletter - May 27, 2019

May 28, 2019

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

 

Introducing...

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

Current Futures

DOW:

+148 (+.58%)

S&P 500:

+11.50 (+.41%)

NASDAQ:

+1.50 (+.02%)

BITCOIN:

+330 (+4.23%)

GOLD:

-1.10 (-.09%)

State of the Markets

U.S. stocks finished lower on the week, even with Friday’s hefty rebound. In fact, the DOW fell for the fifth straight week, the longest since 2011. The ongoing fiasco between the United States and China held the markets down and created numerous short opportunities, which we were able to take full advantage of. We had huge trades on $BYND $ROKU $TSLA and $NFLX this week, finishing up a 5-day stretch with nearly $10,000 in profits! Oil suffered in a big way last week as well, posting its worse week of 2019 as investors worry about future tariffs. Investors showed us on Friday though that there is still some optimism in the markets, that there may be hope that we get some positive terms in the near futures, as well as continued corporate strength.  

Penny Stock Picks

WRITTEN BY: CQB – Penny Stock Moderator

WKHS

Workhorse Group Inc. ($WKHS) is an Auto Parts company in the Consumer Goods sector. This low-float penny stock got a lot of love last week, going from lows of $1.25 on Tuesday to highs $1.94 the very next day. Since then, it has sold off a bit, but still holding higher lows and forming a nice multi-day trend-line (see 5 day chart). Last Friday, it saw lows of $1.45 before grinding up to the $1.64 mark during after-hours trading. I plan to day trade this over the $1.65 natural resistance level for the technical breakout towards previous pre-market highs of $1.87!

NVCN

Neovasc Inc. ($NVCN) is a Medical Appliances & Equipment company in the Healthcare sector. This micro-float, sub $1, penny stock went absolutely ballistic last week, going from the $0.45 range up to nearly $0.99. The parabolic move to the upside came after the company presented it’s case report of successful trial data in Paris last Thursday. The stock has sold off badly since then, as traders took profits just as quick as they came. Last Friday, it found a bottom at the $0.48 support level and now reversing. I plan to day trade this over the $0.56 natural resistance level for the trend reversal setup!

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Earnings Calendar

Quote of the Week

“Courage is fear holding on just a minute longer.” 

– George S. Patton

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Send us a quick email and we will get back to you as soon as possible!
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Weekly Newsletter – May 20, 2019

Weekly Stock Market Newsletter - May 20, 2019

May 20, 2019

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

 

Not a member? Start a one-week free trial today!

Introducing...

KAF Tax Management

Taxes are a hassle, let us simplify it. 

Current Futures

DJIA:

+61 (+.24%)

S&P 500:

 +8 (+.28%)

NASDAQ:

 +29 (+.38%)

BITCOIN:

+720 (+10%)

GOLD:

+1.5 (+.12%)

State of the Markets

It was an UNBELIEVABLE work for bringing in over $7,000 in profit. I traded the same stocks both long and short, in a sniper-esque ways which is a sign of peak trading. Really, really happy about how i was able to read the market momentum and volatility. I have been almost entirely momentum trading. Which is different from catalyst trading. What I mean by this, is all I care about is range and momentum, i don’t care about the catalyst. A stock could have realeased a bullish catalyst but due to momentum and volatility I could be banking on it to the short side. Stay closely attentive to alerts this week because we are having some incredible success.

Stock Picks

WRITTEN BY: CQB/KAF – Stock Moderator

BYND

Beyond Foods ($BYND) is making a splash as 2019’s hottest IPO. The stock IPO’d at $25 and saw as high as $96 last week. I habve recently sized into a hefty short position and this week is finally the week it pays off. I am in short over 700 shares with an average in the mid 80’s. My price target on this ultimately is as low as sub $40, but i will take some profits off the top under $60. This is the week we should see the unraveling begin. The stock recently fell under an extremely critical level of support of $88. It also just so happens that Citron, the notorious shorting company, released a massive short report on BYND on Friday as well with a price target of $65. This name is heavily, heavily over valued. Valued even more than the industry its self. It’s what I would call an A+++ setup to the short side. In the short term it may do some more squeezing and even touch the $100 level. But all i care is where this will be 6-months from now, and that’s sub $40.

BLIN

Bridgeline Digital, Inc. ($BLIN) is an Application Software company in the Technology sector. This micro-float penny stock began to reverse out of its two-week downtrend on Friday, as you see from the breakout that resulted in a high of $6.00 at market open. It attempted to break back over its $5.80 critical resistance level a couple of times later in last Friday’s session, but failed to do so and made new lows into close. It got a walk-up after-hours Friday evening though, coming back to re-test that $5.80 resistance again. I plan to day trade this over the $5.81 critical resistance level. This is a very low-float, volatile stock, so adjust your position sizing accordingly!

$BLIN chart - 05/20/2019

OTLK

Outlook Therapeutics, Inc. ($OTLK) is a Biotechnology company in the Healthcare sector. This low-float penny stock has been in a bit of a parabolic uptrend since its earnings release last Wednesday beat expectations. Since the earnings release last week, the stock has went from lows of $0.85 to a high of $2.72 on Friday. It has since sold off, but held the $2.00 natural support level perfectly for the bounce towards its $2.30 natural resistance. I plan to day trade this over that $2.30 natural resistance level for the technical breakout pattern!  

$OTLK Chart - 05/20/2019

Earnings Calendar

Most Anticipated Earnings - 05/20/2019

Quote of the Week

“Your Journey is about being more involved in life and yet less attached to it.”  -Anonymous

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