Crisis? What Crisis?
June 7, 2020
I recently began an Introduction to Trading and Investing Workshop that will provide you with the tools and confidence to take control of your investments.
I believe that this workshop will be of great benefit to both new traders and veteran investors. You can sign up on my website with this link: Trading and Investing Workshop
Our free Telegram channel, Klarenbach Research, is growing in numbers and the members are getting more comfortable with asking questions regarding traditional markets and Bitcoin.
This is the link https://t.me/klarenbachresearch.
I hope you check it out.
We have had good luck with our Trade Ideas and the ideas posted on our Telegram channel.
I have included the posted open and closed trades since the publication started.
As you can see, finding Investor Class Ideas has proven difficult with more success with Swing Trade Ideas and the Telegram channel. There are a few blemishes, but overall we are pleased with our results.
MARKET REVIEW
Crisis? What Crisis?
This great Supertramp album cover says a lot about the economy and stock market.
**Click on any chart to enlarge**
S&P 500 Index (SPX)
Price has blown through my green area of interest and is firmly above the 200 DMA. It is hard to argue with the bulls here.
However, I am not ready to go 1982 Vancouver Canucks Roger Neilson and wave the white towel on my dead cat bounce idea…..yet….
I still believe that this is a dead cat bounce, however, I am losing conviction in this idea.
At this time, I still consider the B Wave from my March 26 tweet near completion and am waiting for confirmation of the C wave formation.
NASDAQ 100 INDEX (NDX)
NDX is at a new ATH. Hard to argue with that. Software is eating the world.
Dow Jones Industrial Average (DJIA)
The DJI is above the 200 DMA. This is bullish.
ISHARES TRUST RUSSELL 2000 ETF (IWM)
The Russell 2000 is above the 200 DMA. This is bullish.
TSX Composite Index (TSX)
The TSX blew through my area of interest and is about to test the 200 DMA.
S&P 500 Volatility Index (VIX)
The VIX is at the 200 DMA. Does the VIX bounce here and the S&P pulls back?
West Texas Oil (WTIC)
Oil keeps moving up like a boss.
GOLD Spot (XAUUSD)
Gold is pulling back, below the 50 DMA and looks like it could go lower.
US Dollar / Canadian Dollar (USDCAD)
USDCAD went right through the green target area from previous newsletters. I posted this idea on Tuesday in the Telegram Channel.
US Dollar Currency Index (DXY)
USD is weakening against this basket of world currencies.
BITCOIN (BTC)
Honey Badger is trying it’s damndest to break above this trendline.
WHEAT FUTURES (ZW1!)
Wheat is still within my ascending triangle. The 200 Week MA is advancing which is a bullish sign. A level of interest is where the 200 Week MA and yellow trend line converge. That level could be an opportunity to go long.
Currently, this is a no-trade zone for me.
SOYBEAN FUTURES (ZS1!)
The Soybeans look like they broke out of this falling wedge. We have been discussing this for weeks. This is good for farmers.
TLT vs SPY
(ISHARES 20+ YEAR TREASURY BOND ETF vs SPDR S&P 500 ETF TRUST
I interpret this chart as money continuing to flow from Bonds to Equities suggesting the S&P 500 has more upside.
SHOPIFY INC (SHOP)
SHOP has been a beast and I think it is due for a huge correction. I posted ideas on TradingView which can be found here https://www.tradingview.com/chart/SHOP/khIJUje2-SHOP-Elliot-Wave-Idea/ and here https://www.tradingview.com/chart/SHOP/nellgdwz-SHOP-Hyperwave/
INVESTOR CLASS IDEAS
The Investor Class opportunities remain pretty thin as I don’t have many meeting my Investor Class Criteria for this week.
I will post in the Telegram Channel as Trade Ideas develop and are identified during the week.
Here is the link: https://t.me/klarenbachresearch
REMEMBER, CASH IS A POSITION
Don’t FOMO into a position. Have a plan.
TSLA TESLA
This past week we got into TSLA in the Telegram Channel above 822.50 with a stop below 785. I raised my stop which got hit at 879.71 for a 6.95% gain.
TSLA gapped up on Monday’s open and I did not chase. It had a bullish close on Friday and I will be looking to re-enter.
No new ideas for this week.
SWING TRADE IDEAS
Several stocks that are close to ticking all the boxes, however, they need a few more days to set up.
I have a list of 154 prospects that I will be monitoring and will post on the Telegram Channel as a trade sets up.
Here is the link: https://t.me/klarenbachresearch
AURORA CANNABIS (ACB)
We posted on the Telegram Channel that we raised our stop which got hit exiting with a 42% gain.
CIEN CIEN CORP
We posted on the Telegram Channel that we were exiting on June 3rd for a 17.89% gain.
ZNGA ZYNGA INC
We posted on the Telegram Channel that we were exiting on June 2nd for a 17.85% gain.
MEG.TO MEG Energy Corp.
I wasn’t comfortable with how MEG opened on the 2nd and did not take this trade. Some others in the Telegram Channel did and saw some sweet gains.
GRPN GROUPON INC.
GRPN buy triggered at 1.28 on the 3rd. GRPN is up 18%
ARX.TO ARC RESOURCES
ARX is above the 10-, 20- and 50 DMA and is coiling up under the 200 DMA.
I like ARX.TO for a swing trade above 6.05 with a Stop below 5.44.
CHRS COHERUS BIOSCIENCES INC.
CHRS has been consolidating above the 200 DMA and looks ready to make a move higher.
I like CHRS above 19.66 with a stop below 18.54
That is all for now!
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I am actively posting charts and ideas on social media.
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Klarenbach Research: klarenbach.ca
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Twitter: @trentklarenbach
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