AI Buy Alert! Sector Poised For 150% Gains

RoboStreet – April 2, 2020

Retest For Market Underway 

After hitting up against near-term overhead resistance, stocks are retreating as the data from the spread of coronavirus and weaker-than-expected unemployment claims data sparked a new round of selling that is shaping up as a meaningful retest of recent low over the next 2-10 days. 

Markets ended the first quarter on a down note with a short-term $260-262 level now a firm overhead resistance hurdle. Markets will have to break this level to resume upward momentum. The momentum behind the bulls is deteriorating and the market is due for a pullback and some much-needed base building. 

My opinion has not changed. SPY was able to close five days in a row above the key $230-240 level, which is December 2018 low. The encouraging news is:

1. Number of new cases in Italy is leveling off
2. Manufacturing numbers from China and the rest of the world are not as bad as everyone expected
3. VIX continued to make new lows even when the market sold off.  

 “I’m investing my own money in each and every stock as my AI platform identifies.”

And remember we’re not talking about day-trading here.  I’m looking for 50-100% gains inside of the next 3 months, so my weekly updates are timely enough for you to act.

Click Here – To See Where I Put My RoboInvestor Money

The next 2 weeks will be crucial in terms of the leveling of the number of new coronavirus cases how the market handles the unemployment numbers and confirming the bottom on SPY. I expect the market volatility and the five percent daily market moves to persist.  At this point, I do believe we have set the bottom (market can overshoot support and resistance levels especially when VIX is high).  

I believe the worst part of the sell-off is behind us. Please monitor VIX level as current levels are above the historical average. As long as VIX at $40-70 level market can retest the recent lows. My strategy is to aggressively buy any market sell-offs (10-15%).

The energy sector took center stage yesterday after it was reported President Trump said he spoke with leaders in Russia and Saudi Arabia and he believes the nations would end their oil price war in a few days. WTI crude initially rallied a stunning 30% on the headline to $24.50/bbl and shares of the Energy Select Sector SPDR ETF (XLE) gained 10% in reaction to the news. 

Owning the XLE is a great way to trade and invest in the U.S. energy sector. The top 10 holdings occupy 75.31% of total assets with a blended dividend yield of 7.8% being paid out currently, but vulnerable to being lower via probable dividend cuts. 

With crude prices still down about 60% from where it was trading before the markets locked up from the coronavirus crisis, these actions by Trump, Russia and Saudi Arabia put a firm bid under the price of oil. It’s my view that once the economy gets back up to running normally, WTI crude can trade back up to $60/bbl over the next 6 months. 

Such a move up for crude after testing the 2003 lows presents a powerful investment proposition given how out of favor energy has been and the potential to fully outperform going forward. My AI-driven Tradespoon Seasonal Chart is flashing some fresh green buy signals for the next 30, 40 and 50-day periods, For the next three weeks, getting long shares of XLE at the right price for our RoboInvestor Portfolio will be a focus of my attention that investors will not want to miss out on. 

Don’t miss out on when this market fully establishes a bottom and my AI indicators flash several buys for stocks and ETFs for our RoboInvestor members. It is exactly at times such as now when the level of uncertainty is so high that my Tradespoon platform shines. Our Winning Trades Percentage is a torrid 87.1% even during the course of this nasty correction. Below is a table of our most recent trades – all profitable in trading Honeywell International (HON), Gold SPDR Trust ETF (GLD), Akamai Technologies (AKAM) and the iPath Series B S&P 500 VIX Short-Term Futures ETN (VXX). Nice! 

Investors have a generational opportunity to score huge profits in the weeks, months and years ahead by taking full advantage of our limited offer to become a member of RoboInvestor and put the power of AI to work 24/7 in your portfolio starting today! I look forward to welcoming aboard all readers of this column and coming alongside me to navigate our way together in our quest to radically grow our wealth with low risk.

 “I’m investing my own money in each and every stock as my AI platform identifies.”

And remember we’re not talking about day-trading here.  I’m looking for 50-100% gains inside of the next 3 months, so my weekly updates are timely enough for you to act.

Click Here – To See Where I Put My RoboInvestor Money

*Please note: RoboStreet is part of your free subscription service. It is not included in any paid Tradespoon subscription service. Vlad Karpel only trades his own personal money in paid subscription services.  If you are a paid subscriber, please review your Premium Member Picks, ActiveTrader, MonthlyTrader, or RoboInvestor recommendations. If you are interested in receiving Vlad’s personal picks, please click here.