KAF Investing Weekly Newsletter
March 18, 2019
LIVE FUTURES
STATE OF THE MARKETS
US stocks posted a solid advance on Friday thanks in part to optimism over trade talks between the US and China. A rally in
technology stocks helped boost the Nasdaq Composite Index to a 0.8% gain on Friday. For the week, the main market indexes all
posted gains. The Nasdaq rose 3.8%, the Dow climbed 1.6% and the S&P 500 gained 2.9%. China’s state media Xinhua reported that
the US and China have made “concrete progress” on a trade agreement between the economic giants, according to the South China
Morning Post. President Donald Trump said in remarks at the White House that the China talks were going well. Notable movers last
week were semiconductor company Broadcom (AVGO), which helped fuel the tech sector after it reported better-than-expected
earnings. Broadcom rose 8.2%, the second-biggest gainer in the S&P 500 behind Ulta Beauty (ULTA), which rallied 8.3%.
NOTABLE MARKET NEWS
POSITIVE
• European markets opened higher after stocks in Asia powered ahead. The Shanghai Composite added 2.5%, while Japan’s
Nikkei gained 0.6%.
NEUTRAL
• Fresh off new highs for the year, stocks hope to keep up the momentum as Q1 nears the finish line.
NEGATIVE
• Boeing shares were poised to open lower Monday after a weekend of negative headlines about its 737 Max.
KAF'S STOCK PICKS
WRITTEN BY: KAF – LEAD TRADER
HIIQ
Health Insurance Innovations (HIIQ) is setting up well for a gap fill play here over $36. News came out on Wednesday that the
government was opening up an investigation into the companies practices. Two days later the company announced they were
buying back $100 Million worth of shares back. This is in addition to other previous share buybacks. Whenever a company takes
shares off the table like this it tends to be a large launching catalyst, especially when it mixes so well with a breakout over $36 like this does with a gap fill up to the $40 area.
PENNY STOCK PICKS
WRITTEN BY: CQB – PENNY STOCK MODERATOR
VALE
Vale S.A. (VALE) is an Industrial Metals & Minerals company in the Basic Materials sector. This company released negative
news last week, which was a catalyst for its after-hours gap down last week, towards the $13.00 natural resistance level. Normally, I would not day trade this type of high-float stock, but it does have adequate range, reaching $13.40 just a few days ago. I plan to day trade this over the $13.05
natural resistance level for the gap fill potential. Because of the high share float though, this could potentially turn into a swing
trade.
EARNINGS CALENDAR
