October 28, 2019
State of the Markets
The wreckage was significant this week mainly stemming from Mondays insane washout. Markets did show some promise and ability to bounce upwards though recovering a good portion of the early losses on the week to where markets in essence finished basically flat on the week overall. The intense volatility provided a ton of opportunity for us however as we were able to capitalize on violent moves both upwards and downwards. The markets are incredibly volatile and are hanging on to every word about trade, rate cuts, and now the Chinese Yuan value. Every evening at about 9:15 est the PBOC will come out and “fix” the Yuan to a value against the US dollar. This is significant because this week the PBOC has slowly but surely devalued their currency. This helps with Chinese exports and to offset the additional tariffs from the U.S. recently. It’s a massive whirlpool out there where the only thing that has been consistent is instability.
Be sure to watch my video lesson WINTER IS COMING if you haven’t yet.
Last Week Profits
Stocks To Watch This Week
Twitter, Inc. ($TWTR) is an Internet Information Providers company in the Technology sector. This stock had a significant gap down Friday morning, dropping from $31.07 to $29.92. Given the volatile range last week, I expect similar moves early on next week, especially Monday morning. A nice descending wedge pattern formed last Friday as well, so I plan to day trade this over the $30.40 natural resistance level!
Beyond Meat, Inc. ($BYND) is a Processed & Packaged Goods company in the Consumer Goods sector. This stock gapped down quite a bit last Friday morning, but bounced nicely off the the $97.75 natural support level. After forming a double bottom, the stock made a move up to the $101 level. However, it really struggled at the $101 level, and has yet to have a nice breakout. I expect BYND to breakout Monday morning and make a move into the $2.00 gap fill.